Saturday, 24, February, 2024

On December 10, President Shavkat Mirziyoyev signed Additional measures for further development of hydropower Decree. According to the Decree, by 2030, the country's total hydroelectric power capacity is planned to be raised from the current 2,051.9 MW to 3416 MW (+ 66.5%) by gradually expediting the creation of new and phased modernization of existing production facilities.

Among the areas for the development of hydropower is the widespread involvement of the private sector and the public in the production of electricity using natural watercourses, their state support and incentives, ensuring their guaranteed connection to the unified power system and creating a system of guaranteed purchase of generated electricity. 

The Decree has approved the Additional Measures Program for Development of Hydropower for 2021-2030, which includes target figures for the development of hydropower and increasing the level of use of hydropower potential, a list of investment projects, including those involving the construction of small hydropower plants with the participation of the private sector, as well as a list of equipment, components and spare parts for the construction and operation of small hydroelectric power plants, proposed for localization. 

It is planned to amend the legislation to include HPPs with an installed capacity of up to 0.5 MW in the classification of micro HPPs, up to 5 MW - small, up to 30 MW - medium, more than 30 MW - large HPPs. These hydropower plants will be considered renewable energy sources. 

The construction of micro and small hydroelectric power plants (without providing for the construction of drainage structures) by private investors (initiators) will be carried out on the basis of public-private partnership terms and market principles. 

From January 1, 2022, electricity produced by hydroelectric power plants as part of Uzbekgidroenergo will be purchased, including VAT, by a body authorized by the state to carry out the function (authority) of guaranteed electricity purchase from:

  • hydroelectric power plants operating on watercourses - in the amount of 70% of the tariff established for the II tariff group of consumers;
  • regulating HPPs associated with the regime of the electric power system, regulated by the dispatcher - in the amount of 100% of the tariff for the II tariff group of consumers;
  • pumped storage power plants - in the amount of 150% of the tariff for the II tariff group of consumers.

In addition, a guaranteed purchase by the authorized body of surplus electricity produced for its own needs from new solar, wind and biogas power plants (excluding industrial-scale capacities of 1 MW and more) and hydroelectric power plants with a capacity of up to 5 MW at the rate of 80% of the tariff is established, established for the II tariff group of consumers.

Now the tariff for the II group of consumers is 450 soums. The authorized body will guaranteed to purchase electricity produced by the HPP as part of Uzbekgidroenergo at tariffs from 315 soums (70% of the tariffs for group II) to 675 soums (150%). Tariffs for new solar, wind and biogas power plants and hydroelectric power plants with a capacity of up to 5 MW will amount to 360 soums.

According to the Decree, private investors (initiators) have the right for direct supply to legal entities and individuals of electric energy produced at solar, wind and biogas power plants with a capacity of up to 1 MW, as well as hydroelectric power plants with a capacity of up to 5 MW without being connected to a single electric power system, by building a local networks on a contractual basis at agreed prices.

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