Uzbekistan's reforms in RES sector

Gas and Renewables in Emerging Economies Series

This interactive BREC discussion took place in partnership with the Embassy and Mission of Uzbekistan to the EU and the Ministry of Investment and Foreign Trade of Uzbekistan

27 November 2020, 12-2 PM CET

Zoom video conference

For most avid energy security followers in Brussels, gas and renewables have long become a topic highly inter-twined on the one hand, if not a marriage of convenience on the other. During the period spanning roughly the years 2000-2010, very few of us could fail to keep a close eye on key gas supply security developments, bearing in mind supply disruptions emanating from the east. These led to our subsequent efforts to build an Energy Union and efforts to mitigate, in the midst of the growing shadow of the Shale Revolution from across the Atlantic. In the ensuing decade, as the drive towards sustainable energy culminated in the Paris agreements on climate, renewables have tended to super-cede gas as the new buzzword — the fashionable shade of green now somewhat outshining the flammable vision of blue.

Yet, while policy makers in Europe continue to push for renewables largely at the expense of fossil fuels, at the more global level gas and renewables are likely to coexist for quite some time. Indeed, spurred on by a bourgeoning, pre-Covid international LNG trade, demand for investment into a diversity of gas projects remains both politically and commercially desirable — directly in parallel to many governments likewise seeking to attract investment into renewable energy generation. This could, and should, create a more dynamic and diversified set of opportunities for energy investors to choose from, particularly in the emerging markets. We are, after all, living through an era of an "energy transition" and participating in the great changes taking place in the market is more desirable for many than merely observing from the sidelines.

Uzbekistan is a fast-moving Central Asian country with a population of more than 34 million. In line with the dynamic growth rates observed in many parts of the world as soon as we venture beyond Europe's immediate neighbourhood, Uzbekistan has witnessed substantial economic transformation since it acquired independence from the Soviet Union. This is particularly the case during the last decade or so, as the government's modernisation agenda has been buttressed by ambitious programs of economic reform and liberalizationneighborhood of the business environment. The demand for energy, particularly new generation capacity in the power sector, has grown remarkably. Investment opportunities beckon along the entire energy value chain.

The government of Uzbekistan is presently targeting investments in both the gas and renewable energy sectors, particularly in solar, as the abundance of sunny days gives the country a natural advantage in power generation through the advent of solar energy. Projects of all shapes and sizes are currently available, with investor partners from the Gulf States, China, Japan, Russia and the big international energy groups already very active in the market. European stakeholders lag behind their international counterparts somewhat, though it is never too late to start since the government of Uzbekistan offers attractive terms and multiple incentives for projects in both the gas and renewable sectors.

Recording of the meeting presentation: