IEA (2022), Solar Energy Policy in Uzbekistan: A Roadmap, IEA, Paris https://, Licence: CC BY 4.0
This section explores barriers that could hamper the deployment of solar energy technologies in Uzbekistan by taking a look at its current solar policy. The section discusses Uzbekistan''s situation from the following perspectives, drawing on the approaches developed by Solar Energy: Mapping the Road Ahead (IEA and ISA, 2019):
Adequate resource information could help to determine the appropriate solar technologies based on the local conditions. Moreover, a high-quality workforce could promote growth in the renewable energy sector. Internationally harmonised standards could make timely project development possible.
Inadequate resource information
Lack of information on technology readiness and applicability
Shortage of qualified workforce
Information asymmetry/shortage
The Presidential Decree on Measures for the Development of Renewable and Hydrogen Energy, approved in April 2021, calls for the establishment of a the National Renewable Energy Research Institute under the Ministry of Energy. One of its main objectives is to train a highly qualified workforce in the fields of renewable and hydrogen energy. Moreover, to create an educational base for renewable energy, a new Master of Science curriculum on renewable energy sources and sustainable environment will be developed, compatible with European standards, in six Uzbek universities in the framework of the RENES project (RENES, 2020).
In terms of technology standardisation, the State Committee for Standardization, the Academy of Sciences and the Ministry of Energy are carrying out a basic study on the renewable energy standards of the International Electrotechnical Commission and the International Organization for Standardization. They have been drafting a list of standards required for adaptation.
Although the cost of renewable energy has been rapidly decreasing over the decades, government policy and regulations still play a critical role in attracting private investment and ensuring an appropriate energy market.
Policy and regulatory framework
Land availability/building access for installation
Electricity market design
As discussed above, the Law on the Use of Renewable Energy Sources and the Law on PPP serve as a regulatory framework to accelerate the implementation of renewable energy projects, including financial incentives for the use of renewable energy sources. The Regulation for Connecting Businesses provides detailed technical aspects for integrating renewable energy facilities into the electricity system, but the permitting procedure is still unclear.
In terms of land availability, while no specific difficulties are reported for obtaining plots for the construction of large-scale solar farms, citizens who want to obtain plots to build small-scale solar power generators do seem to be encountering difficulties.
As regards the electricity market, Uzbekistan is transitioning to a competitive wholesale electricity market to be fully implemented in 2023, which would oblige all power generators to participate in the market and allow new market participants transparent and non-discriminatory access to the electricity network. To this end, the following measures will be undertaken:
A range of non-economic barriers, including administrative and environmental issues, could prevent the deployment of a renewable technology. These possible barriers are expected to evolve depending on the level of the maturity and deployment of renewable technologies, therefore addressing the non-economic barriers will gradually become important.
Institutional and administrative
Access to financing for solar energy technologies is a precondition for their deployment. Technological viability depends on financing costs due to the high upfront capital costs involved, the long-term economic lifetimes and the impact of the weighted average cost of capital.
Investment costs and economics
Investor confidence and perceived risk
Availability of financing
As was described earlier, the Uzbek government, with financial and technical assistance from international financial institutions, has implemented competitive bidding processes to attract private sector investment in large-scale solar power projects since the enactment of the Law on PPP in 2019. Looking at one of the latest bidding projects, Abu Dhabi Future Energy Company PJSC, known as Masdar, was awarded a 220MW solar PV project in the Samarkand region to supply electricity through the National Electric Grid of Uzbekistan JSC (NEGU) for 25 years at 17.91 USD/MWh (IFC, 2021). This is already lower than the global average auction prices for solar PV.
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