Uzbekistan signs $4.7bn energy deals and outlines plans for two more nuclear power plants
Uzbekistan moves to expand power supply with major energy contracts and new nuclear ambitions
Poinews.com – Uzbekistan is accelerating a broad overhaul of its energy system after securing six agreements valued at $4.7 billion (€4.19 billion), while also setting out intentions to develop two additional nuclear power plants.
The new contracts were concluded in Tashkent during talks on Friday and cover 3,000 megawatts of electricity generation alongside 400 MW of energy storage. President Shavkat Mirziyoyev is pursuing foreign capital for the sector as electricity needs rise across industry, digital infrastructure and other parts of the economy.
The list of companies linked to the projects includes Saudi Arabia’s ACWA Power and Saudi Tabreed; AMEA Power of the United Arab Emirates; Japan’s Toyota Tsusho and Sojitz; France’s EDF; Qatar’s Nebras Power; as well as StorEn and CRE International.
A shift from standalone projects to a connected grid
Uzbekistan has drawn $35 billion (€31.2 billion) in energy investment during the past 10 years. Yet the president said the development model needs to change. Giving developers freedom to select locations has led to generating assets becoming concentrated in certain places, leaving other areas dependent on costly transmission links.
“We need an integrated energy system, not isolated power plants,” Mirziyoyev said.
Future projects are expected to be awarded through competitive tender processes. Information on grid access and power-purchase conditions will be made public before bidding, a move intended to give prospective investors clearer commercial terms while helping authorities coordinate new capacity with the national network.
Six separate solar and wind projects, together amounting to 2,200 MW, are also due to go to tender. Renewable generation is central to the government’s longer-term plans, but its value will depend on transmission capacity and storage that can manage supply when sunshine or wind conditions vary.
Uzbekistan plans to complete its first National Energy Master Plan, looking ahead to 2050, by July 2027. A map showing potential grid-connection opportunities is anticipated in March. For businesses considering new power facilities, such planning could help clarify where projects can be connected most efficiently and where investment in networks is most urgently required.
Targets for 2030
By 2030, the government wants to add 22 GW of generating capacity, install 5,000 kilometres of electricity lines and construct 16 substations. Storage capacity is expected to reach 4.5 GW. Annual electricity production is targeted to surpass 129 billion kWh.
Renewables, including hydropower, are intended to supply 54% of national generation by that date, compared with 31% at present. The programme is not limited to electricity plants: officials have also put forward 12 manufacturing initiatives worth $850 million (€758 million) to increase local production of energy equipment.
Najy Benhassine, the World Bank’s division director for Central Asia, said the country’s rapid growth requires both more production and a stronger system for moving power to consumers.
“All of this will need energy, will need more generation, but will also need the transmission infrastructure and efficient distribution to power the future growth of the country,” Benhassine said.
Neil McKain, the International Finance Corporation’s country manager for Uzbekistan and Turkmenistan, pointed to efficiency as another major issue. He described Uzbekistan as an economy that still uses large amounts of energy relative to its activity.
“In the energy sector, I think it’s energy efficiency. This is still a highly energy-intensive economy,” McKain said.
McKain also noted that competitive procurement and increased electricity tariffs have improved the appeal of projects for investors. He highlighted a 1.6 GW gas-fired facility in Syrdarya, financed with international partners and expected to begin operations this year.
Further nuclear plants under consideration
Nuclear energy is becoming an increasingly prominent part of Uzbekistan’s plans for a more diversified supply mix. Mirziyoyev said the country intends to build second and third nuclear power plants, with discussions involving possible investors in the second project scheduled for Saturday.
“We have started the first nuclear power plant, and we have plans for the second and third as well,” he said.
Construction began in June on the country’s first nuclear plant in Jizzakh, developed with Russia’s Rosatom. The project includes two large reactors and two smaller units, with combined capacity of 2,110 MW. Its estimated cost could reach $9.5 billion (€8.48 billion). Initial technical commissioning is planned for 2029, while full completion is envisaged for 2034 or 2035.
No partners, budgets or construction schedules have yet been confirmed for the proposed second and third facilities. Those details will be significant for a programme that requires long-term financing, technical expertise and reliable integration into the wider electricity grid.
Gas exploration, processing and a route towards Europe
Alongside investment in low-carbon generation, Uzbekistan is seeking to develop its hydrocarbon resources. Britain’s BP and Azerbaijan’s SOCAR are participating in exploration across six blocks in the Ustyurt region. A further 128 blocks have been prepared for foreign investors.
Initial government assessments indicate that these additional areas could hold 5.8 trillion cubic metres of natural gas and 560 million tonnes of liquid hydrocarbons. The authorities also want to develop more domestic value from energy resources, including a methanol-to-olefins project in Bukhara. Such a facility would transform methanol into chemical products used in plastic manufacturing.
Plans also include modernising two oil refineries and opening liquefied petroleum gas distribution to private participation.
Mirziyoyev said preparations are advancing for renewable-electricity exports to Europe through Kazakhstan and Azerbaijan. The proposed Caspian Green Energy Corridor has support from the Asian Development Bank and the Asian Infrastructure Investment Bank. It would envisage a connection beneath or across the Caspian Sea, followed by routes through the South Caucasus and the Black Sea region.
The corridor remains in the feasibility phase, but it illustrates the scale of Uzbekistan’s energy ambition: meeting expanding domestic needs while positioning the country for a potentially larger role in regional power markets.
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