Uzbekistan Power Market

The Uzbekistan power market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 2.42% during 2023–2031. The growth of the market is attributed to acceleration of industrialization, population growth, and electricity consumption.

In recent years, Uzbekistan has implemented extensive reforms to strengthen its energy sector. The problems stem from excessive wear and tear of equipment, slow infrastructure upgrades, equipment failures, insufficient pipelines, and gas and power lines exceeding acceptable limits their service life. The country’s financial instability and inadequate implementation of resource-saving technologies have led to increased technical losses and increased fuel and power outages.

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Uzbekistan Power Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for electricity is expected to boost the market during the forecast period.

• Rising awareness among people about carbon emission is major factors fueling the market.

• Increasing industrialization and population is expected to drive the market during forecast period.

• Lack of skilled labor and their inefficiency possess as key factors that can restrict the market growth during the forecast period.

• R&D investment and increase in the use of renewable and nuclear energy to reduce the carbon dioxide footprint is projected to create immense opportunities for the market players.

Scope of Uzbekistan Power Market Report

The report on the Uzbekistan power market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Uzbekistan Power Market Segment Insights

The thermal power segment is projected to represent a major market share

The Uzbekistan power market is fragmented into power generation and power transmission & distribution. The power generation segment is further segregated into thermal, hydropower, renewables, and nuclear. The thermal power segment is expected to represent a key share of the market during the forecast period. Uzbekistan's power generation structure includes thermal power plants with a total capacity of 10.6 gig watts, accounting for 90% of the total power generation. According to the department of energy, increasing electricity demand is anticipated to force the government to at least double its existing power generation capacity during forecast period, because 80% of existing generator sets are outdated and obsolete, and their average age is more comparable.

On the other hand, the hydropower segment is anticipated to expand at a rapid pace during the forecast period owing to Uzbekistan's renewable energy sources mainly include hydropower. This sector accounts for nearly 99% of the total installed capacity of renewable energy and occupies a dominant position in the field of renewable energy. The country's total installed capacity was approximately 1,914.9 megawatts (MW) in 2018 and rose to 1,938.9 megawatts in 2019. As the country's demand for electricity continues to increase, four new hydropower stations with an output of more than 30 megawatts per inch were put into operation. In addition, the Uzbekistan government plans to build 16 small hydropower stations and modernize 21 existing hydropower stations. It is estimated that during forecast period, after the completion of the above-mentioned projects, the annual power generation will reach about 2.826 billion kilowatt-hours, and the total number of hydropower stations will reach 57 in 2027.

Uzbekistan’s power transmission system is owned and operated by Uzbekistan, and is a high-voltage network connecting Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan. It also has a 220 kV connection with Afghanistan. Similar to the power generation system, the transmission network is aging. As demand increases, transmission bottlenecks have become a major problem, making it difficult to reliably supply power to consumers in countries and regions. About 70% of electricity production comes from the northern region of Uzbekistan, which supplies electricity to the southern region, while more than 90% of natural gas production comes from the south, so natural gas is transferred northward and converted into electricity, and vice versa.

Uzbekistan distributes energy to consumers of all categories from its 14 regional distribution centers, which have 256 distribution units across the country. The Fergana valley consists of three regions: Namangan, Andijan, and Fergana. The customer base includes 5.2 million private customers. Usbekenergo uses its internal resources to install wholesale sales counters, which can accurately measure and report the interval requirements of large industrial customers and power transmission and distribution interfaces. Installing an advanced energy metering system (AEM) for small residential and commercial customers is a step to ensure that the loss of various system components is accurately measured, so that loss reduction efforts can be focused on the main injection loss.

Segments

The Uzbekistan power market has been segmented on the basis of

• Power Generation
  • Thermal
  • Nuclear
  • Renewables
  • Hydropower
• Power Transmission and Distribution

Key Players

• Mitsubishi Heavy Industries Ltd.
• Helios Energy Ltd.
• SkyPower Ltd.
• Masdar Clean Energy Company
• Federal Hydro-Generating Co RusHydro PAO

Competitive Landscape

Key players competing in the Uzbekistan power market include Mitsubishi Heavy Industries Ltd., Helios Energy Ltd., SkyPower Ltd., Masdar Clean Energy Company, and Federal Hydro-Generating Co RusHydro PAO.

Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and to generate revenue and raise their production line of the business in the coming years.