Uzbekistan is a country in Central Asia with a growing demand for electricity. Solar power can play a role in meeting this demand, as the country has abundant solar resources and a strong potential for solar energy generation. The government of Uzbekistan has implemented several initiatives to promote the use of solar power, including the development of large-scale solar power plants and the introduction of incentives for individuals and businesses to install solar panels. Some of the benefits of solar power in Uzbekistan include reduced dependence on fossil fuels, lower greenhouse gas emissions, and improved energy security.
The Law on the Use of Renewable Energy Sources (RES Law, 2019), introduced in May 2019, sets the fundamental framework for faster RES development. It specifies the guidelines and support schemes for renewable energy producers and defines the obligations of governmental bodies in promoting renewable energy.[1]
Uzbekistan has great potential for solar energy due to its high levels of solar radiation and large areas of barren land that can be used for solar power plants. The country receives an average of around 300 sunny days per year, making it an ideal location for solar power generation.
Source: ECMWF Data[2]
In addition to mega-scale solar projects, small- to medium-scale solar projects including rooftop solar PV become attractive to developers and consumers thanks to appropriate policy targets and measures. Off-grid solar energy systems could secure clean energy supply in remote areas with good solar resources but no access to the grid.
Uzbekistan is actively developing, with the assistance of the World Bank, a targeted program to install two-kilowatt solar panels in 150,000 private houses. Installation work is planned to be carried out in 2021-2023.[9] Also, funds were allocated by local governments for the installation of solar panels in the apartments of low-income families.[10] Because the cost of installing solar panels is high relative to the income of the population, they are not becoming widely popular despite state subsidies.
Installation of Solar panels on schools, governmental offices, hospitals and public buildings is accelerated by The Law on the Use of Renewable Energy Sources (adopted in May 2019).[11] The Cabinet of Ministers of Uzbekistan has joined the "green" energy with installing 0,63MWh solar photovoltaic station at the building of the Cabinet of Ministers of the Republic of Uzbekistan.[12] In the year of 2022, 300kWh capacity solar panels installed at Tashkent city hall building, 100kWh at the Tashkent branch of Mendeleev Institute, and State Tax committee became 80% self-sufficient by solar.[13]
International Institute of Solar Energy, part of Academy of Sciences of the Republic of Uzbekistan, is a center for research, development, and testing of solar power technologies.[14] Solar furnace in Parkent is used in the research and scientific processes of the Materials Science Institute of Academy of Sciences of the Republic of Uzbekistan. The facility has a total capacity of 1,000 kW and is heated and processed by solid state fusion processes and sunlight.
WASHINGTON, March 7, 2023—The World Bank''s Board of Executive Directors approved todayfinancing support in the amount of $12 million for the Scaling Solar 2 Project for Uzbekistan. The Project will help expand the country''s capacity to produce clean and renewable energy, as well as further support the Government''s agenda of the transition to a green economy and promoting the decarbonization of the energy sector.
In 2019, Uzbekistan becamethe first countryoutside of Africa to join the World Bank Group (WBG)''s Scaling Solar Program. The currently operational Navoi 100 MW Scaling Solar 1 power plant became the first large-scale, competitively procured, and privately developed and operated renewable energy facility in the country. The Project was supportedby a World Bank payment guarantee and the International Finance Corporation (IFC) advisory services and financing under the above-mentioned Program.
The new Scaling Solar 2 Project is a major scale-up of solar energy generation with an additional 440MW of capacity in two regions of Uzbekistan, building on the success of the Navoi Scaling Solar 1 Project.
In May 2021, Uzbekistan announced the winning bidder of the public-private partnerships (PPPs) for two separate solar power plants, each with a capacity of 220 MW in Kattakurgan district of Samarkand region and Gallaorol district of Jizzakh region. Masdar, a United Arab Emirates-based renewable energy company,, submitted bids representing the lowest electricity tariffs in the country and the broader Central Asian region. These PPP projects, supported by the IFC advisory services, will benefit from World Bank payment guarantees totaling up to $12 million under the WBG Scaling Solar Program.
The solar power plants in Samarkand and Jizzakh regions supported by the World Bank payment guarantees will generate 1.1 Terawatt-hour (TWh) of renewable electricity per year. They will avoid CO2 emissions of around 110,000 metric tons per year on average, or a total of about 3.4 million metric tons over their lifetime.
"The Government and the World Bank consider the deployment of our payment guarantees critical to mitigate perceived risks and to signal to international investors that Uzbekistan is ready to mobilize much-needed private capital, clean technologies, and management expertise to develop its renewables sector with private sector participation," notedMarco Mantovanelli, World Bank Country Manager for Uzbekistan. "The Project approved today will help the country meet rapidly growing demand in electricity as well as strengthen the security of supply and energy sector decarbonization in the country."
The above-mentioned solar power plants will be implemented through limited liability companies (the Project Companies) owned by Masdar. They will develop, finance, build, own, operate, and maintain both solar power plants. The Project Companies are committed to selling electricity generated by the plants according to Power Purchase Agreements (PPAs) signed with state-owned National Electric Grid of Uzbekistan JSC (NEGU).
The World Bank will provide payment guarantees for NEGU up to $6 million for each of the plants in Samarkand and Jizzakh regions (totaling up to $12 million). These guaranteeswillbackstop long-term Letters of Credit, which willhelpensure that NEGUmeetstimely payment obligationsarising out of the PPAs with the Project Companies. Additionally, the World Bank continues to provide support to create an enabling environment for private renewable energy deployment and broader sector reforms in Uzbekistan.
To implement these solar power plants, Masdar will invest $193 million of equity in the Project Companies. The debt financing packageof $216 million will be provided by the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Asian Infrastructure Investment Bank (AIIB).
Scaling Solar is a WBG program that makes it easier for governments to quickly procure and develop large solar projects with private financing. It includes a package of expert advice, fully templated documents, pre-approved financing, insurance products, and guarantees. The Program is developed in partnership with the Governments of Denmark, Korea, the Netherlands, and the United Kingdom, as well as the United States Agency for International Development (USAID)''s Power Africa and the Private Infrastructure Development Group.For more information, please visit
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