Uzbekistan Power Sector

Uzbekistan

Power Sector

Murtazaeva Nilufar.

Embassy of the Republic of Korea

• Established by Presidential Decree PP-2972

• Providing centralized process management of hydropower facilities

UZBEKGIDROENERGO

• Includes the Uzatom Agency, Uzneftegaz inspection, Uzenergo inspection, and the Implementation Group

Ministry of Energy

• Law on renewable energy was adopted

• Focus on use of renewable sources of energy and

production of equipment used in the renewable energy sector

Renewable energy

• Formed by Presidential Decree PF-5484

• Atomic Energy Development Agency

UZATOM

• JSC “Thermal power Plants”

• JSC “National electricity Grids of Uzbekistan”

• JSC “Regional Power grids”

UZBEKENERGO Reformation

2017.05 2019.02 2019.08

2018.06 2019.03

Development of Energy Sector

Presidential Decree No. PP – 4249 of 27 March 2019: Structural transformations

Structural transformations (before)

JSC UZBEKE NE RGO (m o n o p o list a n d r e g u lato r in th e p o w e r e n e rg y se cto r) ENERGOSOTISH

Single buyer and wholesaler

UZELECTROSET

Main dispatch manager and transmitter

Local distributors

14 territorial JSCs

Structural transformations

Thermal Power Plants

Management of TPPs generating electric and thermal energy (replacing Energosotish & Uzelectroset)

National Electricity Grids

Operation & development of electric grids

Export, import, transportation & interstate transit of electric power

Single power purchaser from entities that produce electric power

Regional Power Grids

Management of regional power grid entities distributing and

selling electric power to ultimate consumers

Power generation:

Power transmission:

Regulation:

Current problems cover low efficiency and poor condition of assets, high level of losses and low tariffs

 Low efficiency of TPPs. All TPPs run on steam turbine technology with a weight average efficiency of 33%, compared to 55% for advanced combined-cycle gas turbine technology

 Poor assets condition. Most power generation assets are 40-50 years old, in poor condition, and require replacement and rehabilitation

 Power assets are not strategically situated. About 70% of power generation occurs in the north while over 90% of gas production occurs in the south

 Poor assets condition. Assets have not been properly maintained and upgraded, affecting the delivery of reliable power supply to domestic costumers, especially in the south regions

 High level of losses. Transmission system losses are officially reported at 18% and distribution losses at 14%. Revenue collection rate is not more than 80% which maybe understated because of Uzbekenergo’s inability to collect information on the amount of electricity supplied and inability to monitor the revenue collection

 Low tariffs. Uzbekistan’s electricity tariff has been low in absolute terms because of the law domestic cost of natural gas relative to international prices. This has discouraged demand-side energy efficiency improvements

 The amount of generated electricity is sufficient to meet demand in Uzbekistan.

About 85% of Uzbekistan’s electricity generation comes from thermal power plants. However, rotating blackouts occur in winter

 Since 2002 Uzbekistan has been supplying electricity to Afghanistan. Every year the supply volume has increased. In 2018, a contract on the supply of about 1.85 billion kWh of electricity was signed

 To cover the demand for electricity in Fergana valley, Uzbekistan imports 1.2 billion kWh from Kyrgyzstan (2017)

02

Modernize and retool existing outdated, low- efficiency, gas-fired plants, whose efficiency is 40% lower than that of modern thermal plants.

(country losses approximately 1.2 billion USD in potential export revenues

By 2030, the total electrical load during peak hours will exceed 20 thousand MW compared to 11 thousand MW in the autumn-winter period of 2018-2019.

The commissioning of 15.6 GW of new and modernized generating capacities and decommissioning of 6.4 GW of physically obsolete equipment of generating capacities of TPP planned by 2030.

Thermal Power

01 03

Program for the implementation of large investment projects in

the electric power industry for 2019-2030

Thermal Power Plants – Perspective projects

No Name Capacity/

MW

Total cost of project

Period of

Construction Contractor Location Terms of Contract

1 Surkhandarya TPP 900 900 1.2 bln usd 2020-2022 TBD Surkhandarya PPP

2 Tashkent TPP 850 850 TBD 2020-2021 TBD Tashkent region PPP

3 Talimarjan – 3 2x450

910 mln usd/790 mln usd from

ADB/EBRD

2020-2024 TBD Kashkadarya region PPP

4 Talimarjan TPP TBD 1 bln usd TBD Mubadala Kashkadarya region Privatization

5 Syrdarya TPP

(Greenfield) 2x650 1 bln usd 2021-2024 TBD Syrdarya region PPP

6 Syrdarya TPP 1.5 G 1500 1 bln USD 2020-2023 ACWA Power Syrdarya region EPA

7 Navoi TPP-3 650 540 2020-2023 JICA Navoi region F/S

8 Novo-Angren TPP (Coal) 750 TBD 2021-2024 TBD Tashkent region PPP

9 Angren TPP (Coal) 450 TBD 2021-2023 TBD Tashkent region PPP

10 Nuclear TPP 2x1200 11 bln usd 2028-2030 RosAtom Navoi region Agreement

11 Mubarek CHP 200 TBD 2021 SK E&C Kashkadarya region MOU signed

HYDROPOWER

Simple PowerPoint Presentation

The studied hydropower potential of Uzbekistan is estimated at 27.5 billion kWh per year. Currently, the country uses only about 30% of the technical hydropower potential. Hydroelectric power plants with a total capacity of 1,854 MW (37 HPP) generate about 6.5 billion kWh of electricity, depending on the water content of the year.

Up to 2024, Uzbekgidroenergo plans to implement 4 hydroelectric power stations with a capacity of more than 30 MW, 16 new small ones, and to modernize 21 existing hydroelectric power stations.

As a result, the total number of stations will reach 57 hydroelectric stations with a total electricity generation of 9.34 billion kWh.

Until 2025, Uzbekistan plans to send US$2.63 billion to implement these projects, of which - $2.04 billion – its own funds and US$643 million - of credit funds.

UZBEKGIDRONERGO JSC, a specialized company in the field of operating, modernization, reconstruction and

construction of hydroelectric power stations was established in terms of hydropower development in Uzbekistan.

SOLAR ENERGY

Uzbekistan has favorable conditions for the development of solar power, since most of the country has the maximum solar exposure rate of

5.5 to 6 kWh/m

The gross potential of solar energy in Uzbekistan is estimated at 50973 million tons of oil equivalent, which is 99.7% of the total gross potential of all the renewable energy sources investigated so far in the republic, the technical potential is 176.8 million TOE. (98.6% of the total technical potential of RES) By 2025, the share of Solar power in Uzbekistan will increase to 2,3%, and the share of Wind power to 1,6%.

Highest concentration of solar radiation (>6 kWh/m)

No Project Location Capacity/MW Total cost of project

Period of

Construction Contractor Region Terms of Contract

1 Scaling Solar I Karmana 100 100 million usd 2020-2021 Masdar Navoi PPP

2 Solar 100 Nurabad 100 150 million euro 2020-2021 Total Eren Samarkand EPA

3 Solar 200 Sherobod 200 200 mln usd 2020-2023 ADB consulting Surkhandarya EPA

4 Scaling Solar II

Gallyaaral 200 200 mln usd 2020-2023 IFC consulting Jizzak EPA

Kattakurgan 200 200 mln usd 2020-2023 IFC consulting Samarkand EPA

Planned projects on Construction of

Solar Power Plant

Daily amount of cumulative solar radiation

WIND POWER

No Project Location Capacity/

MW

Total cost of project

Period of

Construction Contractor Region Terms of Contract 1 ^{Wind 1000}

Qoratou 100 EBRD loan 1 bln usd for 1000 MW

TBD TBD Karakalpakstan PPP

Andijan 200 TBD TBD Navoi PPP

2 ^{Wind 400 Tandym 400} 600 million USD 2020-2022 Masdar Navoi EPA

3 Wind 500 Navoi 500 TBD 2020-2022 ACWA Power Navoi PPP

4 Wind 200 Gijduvan 200 200 mln usd 2020-2023 Liaoning Leader' Bukhara F/S

Planned projects on Construction of Wind Power Plant

 In Uzbekistan, the gross potential of wind energy is estimated at 2.2 million TOE

 The regions with wind potential 5.50 > 6.25 m/s are suitable for the construction of highly efficient

Wind Power

Plants

(In 2017, Uzbekistan launched the first experimental wind power plant with a capacity of 750 Kw)

Distribution of wind speed (average wind speed) at 80 m above the ground

Vision of development covers capacity and operational efficiency increase, regulatory environment improvement

Power generation:

 TPP capacity increase. Several TPPs with additional capacity of 2,5 GW are currently under construction

 HPP capacity increase. Uzbekistan embarked on the ambitious program of rehabilitation of old and construction of new HPPs with estimated 27.4 M MW/h annual hydropower generation capacity. The plans are to develop 18 new HPPs and modernize 14 existing HPPs till 2025

 Renewable energy. Targeting up to 21% renewable energy by 2031, Uzbekistan also plans to install at least 5 GW of solar capacity

 Nuclear generation. In 2018, the government has announced plans to develop a nuclear power generation starting with two units 1200 MW each

Regulation:

 A set of regulatory measures, including: Long-term master plan development, Investment program 2030, Institutional and structural reforms, Promoting PPP and regulatory environment preparation, New tariff methodology, Corporate governance improvement, Renewable energy development

Vision of development

Installed Capacity Forecast to 2030

Current available power 14GW

48.6 ^%

Hydro power - 1.9 GW

By 2030, Uzbekistan plan to increase the installed capacity

up to 30 GW.

Renewable energy sources:

Solar power - 5 GW Wind power - 2 GW

Maneuverable generating capacities - 3 GW

Modern CCGT power plants - 10 GW Nuclear power plant - 2.4 GW

30

Decommissioning – 6,4 GW

Existing, Modernized and Newly Constructed Thermal Power Plants

№ ^Name Type of Plant

No. of Turbine- Generator

units

Installed

capacity, MW Fuel type Year of Initial

Operation/Construction Area Remark

1 Syrdarya TPP Steam Turbine 10 3050 Gas, Oil 1972-1981 Syrdarya region

2 Tashkent TPP Steam Turbine/ 12 2230 gas 1963-1971 Tashkent region

3 Novo-Angren TPP Steam Turbine 7 2100 Coal, Gas 1985-1995 Tashkent region

4 Talimarjan TPP Combined Cycle 3 1700 gas 2016 Kashkadarya

region

5

Navoi TPP Combined Cycle 11 1683 gas 1963-1980

Navoi region

Project cost: 432 mln USD Contractor: Mitsubishi Corporation &

MHPS, & Calik Energi Navoi TPP-2

(Expansion) CCGT 1 450 gas 2017-2019

6 Takhiatash TPP

(Modernization) CCGT 2 510 gas 2017-2020 Karakalpakstan

Project cost: 678 mln usd (300 mln USd from ADB) Contractor:

Hyundai E&C

7 Angren TPP Steam Turbine 7 634 coal 1957-1963 Tashkent region

8 Ferghana CHP Steam Turbine/

Boiler 6 305 gas 1956-1981 Ferghana Region

9 Mubarek CHP Steam Turbine/

Boiler 2 60 gas 1985-1986 Kashkadarya

region 10 Tashkent CHP Steam Turbine/

Boiler 1 49.5 gas 1939-1955 Tashkent region

11 ^Turakurgan

(New construction) CCGT 2 900 Gas 2017-2020 Namangan region

Project cost: 1,2 billion usd (704 mln usd from JICA) Contractor:

Mitsubishi Corporation & MHPS

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