Issues of creating a new energy market management system discussed

June 24, 2022

UZBEKISTAN, June 23 - On June 23, President Shavkat Mirziyoyev held a meeting on the transformation of electric power enterprises.

The fuel and energy complex is being modernized by the growing needs of the economy and population. It is carried out based on the Strategy for Further Development and Reform of the electric power industry of Uzbekistan, approved by the Presidential resolution of March 27, 2019.

In particular, 3 structures for the production, transportation and sale of electricity were created based on the former JSC Uzbekenergo. 7 million consumers are connected to the automated system for monitoring and accounting of electricity, and the collection of payments is provided by 100 percent. Foreign investors have been attracted to 19 projects for the construction of solar, wind and thermal power plants worth $ 7 billion.

At the same time, there is still a lot of work on the formation of competition in the sphere, increasing the volume and quality of energy supply. In particular, about $20 billion of investments will be required in the coming years to modernize the energy system and fully meet the needs of economic sectors and the population. This requires the establishment of a competitive energy market and the creation of conditions for private investors.

Issues of creating a new energy market management system were discussed at the meeting.

To create equal conditions for the connection of private generating enterprises, it was proposed to divide the powers of JSC O’zbekiston Milliy Elektr Tarmoqlari for the purchase of electricity and management of backbone networks. At the same time, the single buyer company will buy electricity from all power plants on a contractual basis and sell it to large companies and enterprises of regional electric networks. And the operator of the backbone networks will be responsible for the transportation of electricity, loss reduction and technical management of the power system.

Next year, private electricity retail companies will be organized in 14 districts and cities as an alternative to JSC Hududiy Elektr Tarmoqlari.

The need to accelerate the process of transformation, financial recovery of enterprises and their transformation into companies capable of attracting direct investment was noted at the meeting. An instruction was given to take measures to optimize the operating costs of industry enterprises, modernize power transmission lines.

The Government and industry managers have been tasked with developing a training program for highly qualified personnel necessary for the implementation of this reform.

Source: UzA