The Creation of A New Energy Market Management System Discussed

23 Jun 2022

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, three structures for the production, transportation and sale of electricity were established based on the former JSC «Uzbekenergo». Seven million consumers are connected to the automated system for monitoring and accounting of the electricity, as well as the collection of payments is provided by 100%. The foreign investors have been attracted to 19 projects for the construction of solar, wind and thermal power plants for $7 billion.

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

In this regard, the issues of creating a new energy market management system were discussed at the meeting.

In order to create the equal conditions for the connection of private generating enterprises, it was proposed to divide the powers of JSC «National Electric Grid of Uzbekistan» for the purchase of electricity and management of backbone networks. Furthermore, the single buyer company will buy electricity from all the power plants on a contractual basis and sell it to the large companies and enterprises of the regional electric networks. The operator of the backbone networks will be responsible for the transportation of electricity, loss reduction and technical management of the power system.

The private electricity retail companies will be organized at 14 districts and cities as an alternative to JSC «Regional Electric Networks».

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.