Energy Sector Reforms in Uzbekistan
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“Energy Sector Reforms in Uzbekistan” General Information about Uzbekistan Uzbekistan is rich in minerals and natural sources, and also has resources in the field of culture and art. Capital Tashkent
Official currency "Soum" – UZS (UZS/USD) 1$=9400) Languages Uzbek (official), Russian (commonly used)
Political system Presidential multi- party democratic republic
Area 450 000 sq.km Population 33 mn (72% under 40)
around 50% GDP USD 50 billion Place in world reserves Place in world Production Natural gas 24th
13th Uranium 16th
7th Mineral resource diversity excludes the dependence on a single resource type Energy supply diversification by source Coal 29th
34th Investments of USD 2.7 bn in 2017 –2025 to develop 18 new projects and upgrade 14 existing plants Hydropower 51 bn tons of oil equivalent Solar 360 mn tons of oil equivalent for wind energy
Outdated energy utilities Supply security needs High energy intensity and need for transitioning to low-carbon energy mix Limited regional trade Unrealized RE potential Challenges in the Power Sector
Government development priorities in power sector Adoption of market principles and unbundling of energy SOEs Improving service delivery and reliability Sector investment planning based on optimal cost principles Promoting private sector participation and competition in the sector Improving transparency and accountability of the sector entities Enhancing regional connectivity and energy trade Energy efficiency scale-up Strengthening collaboration with IFIs and coordination among sector stakeholders Government’s recent power sector reforms -Establishment of the Ministry of Energy -Unbundling of Uzbekenergo into generation (JC “TPS”, JC “NEPGU”, JC “REPN” ), transmission and distribution companies -PPP Law adopted May 2019 -Establishment of PPP Agency; - First PPP project is started -Renewable Energy Law adopted in May 2019
-Preparation of the first 100 MW competitive solar PV PPP project in Navoi region -Uzbekenergo IFRS- based financial statements issued -Improving regional connectivity and trade (TJ connecting to Central Asian Power System , export/import with neighboring countries)
Installed capacity structure in Uzbekistan 12.0 GW 2019 Natural gas – 8,8 GW or 73% Coal – 1,3 GW or 11 % Hydropower – 1,9 GW or 16% Natural gas Coal
Hydroelectric GROWING NEEDS OF UZBEKISTAN IN ELECTRICITY Today, the demand for electricity is
The country produces a total of
electricity According to experts,
for electricity will almost double and will amount to 117 billion kWh 2019
2025 2030
69 billion kWh 89 billion kWh 117 billion kWh
We expect by 2030 51,3
15,7 11,9
8,2 7,5
5,3 BY 2030 Natural gas power - 16,3 GW or 51,3% against current 8,8 GW or 73% Solar PV - 5 GW or 15,7% against current zero Hydropower - 3,8 GW or 11,9% against current 1,9 GW or 16% Coal generated - 2,6 GW or 8,2% against current 1,3 GW or 11% Nuclear power - 2,4 GW or 7,5% against current zero Wind - 1,7 GW or 5,3% against current zero Natural gas power - 16,3 GW or 51,3% against current 8,8 GW or 73% Solar PV - 5 GW or 15,7% against current zero Hydropower - 3,8 GW or 11,9% against current 1,9 GW or 16% Coal generated - 2,6 GW or 8,2% against current 1,3 GW or 11% Nuclear power - 2,4 GW or 7,5% against current zero Wind - 1,7 GW or 5,3% against current zero Ongoing Projects • Photovoltaic PPP competitive bidding projects • IFC Navoi 100 MW Scaling Solar project (price on September 30, 2019 • IFC 400 MW PV stations • Photovoltaic PPP bilateral
• Total Eren 100 MW (signed September 2019) • CCGT PPP bilateral projects • Cengiz Energy • Yildirim Energy • ACWA Power • Wind PPP bilateral projects • Masdar up to 500 MW in Zarafshon • ACWA Power 500 MW in Konimekh • Liaoning Lider 500 MW in Bukhara
What it gives to Uzbekistan to have its own NPP? 2.4 GW of additional electricity will be added to the overall energy balance 3.0-3.5 billion cubic meters of natural gas will be saved annually The NPP will contribute to the economic and social development of the region where it will be built Every 1 $, spent on construction and operation of the NPP returns back to the economy of Uzbekistan on average 5-6 $ A large amount of materials and services will be localized as part of the construction of nuclear power plants During the construction of the nuclear power plant, more than 8,000 new jobs will be created and during the operation period 2,500 Reduces greenhouse atmosphere; up to 14 million tons of carbon dioxide and 36 thousand tons of nitrogen dioxide Benefits of developing nuclear power National Carbon Reduction Strategies On October 2, 2018 the President of the Republic of Uzbekistan signed the Law “On Ratification of the Paris Climate Agreement” CO 2 emissions from various sources of electricity COAL 820 CO 2 kg/MW ꞏ h PhPP 18 CO 2 kg/MW ꞏ h indirect emissions WPP 7 CO 2 kg/MW ꞏ h indirect emissions DIESEL FUEL 792 CO 2 kg/MW ꞏ h NATURAL GAS 490 CO 2 kg/MW ꞏ h ATOMIC ENERGY 12 CO 2 kg/MW ꞏ h indirect emissions throughout the fuel cycle from extraction to waste CO 2 kg/MW ꞏ h 0 only What it gives to Uzbekistan to have its own NPP? 2.4 GW of additional electricity will be added to the overall energy balance 3.0-3.5 billion cubic meters of natural gas will be saved annually The NPP will contribute to the economic and social development of the region where it will be built Every 1 $, spent on construction and operation of the NPP returns back to the economy of Uzbekistan on average 5-6 $ A large amount of materials and services will be localized as part of the construction of nuclear power plants During the construction of the nuclear power plant, more than 8,000 new jobs will be created and during the operation period 2,500 Reduces greenhouse gas emissions into the atmosphere; up to 14 million tons of carbon dioxide and 36 thousand tons of nitrogen dioxide Benefits of developing nuclear power ELECTRICITY SECTOR REFORM IMPLEMENTATION PLAN FOR 2019-2020 5 key pillars & 40 priority actions Establishment and corporate governance of the newly unbundled electricity companies (11) Financial sustainability (13) Investment program and private sector participation (8) Implementation Support for the Reform Plan (4)
Commercialization of the power utilities (4) 6 Transfer of assets and debt liabilities to the new companies: capital assets, credits, loans and amendments to legal agreements Improvement of the accounting and reporting procedures for financial flows, accounting and management of electricity networks 2019 Development and approval of the financial reporting policy of enterprises/companies on the basis of national reporting standards and preparation for IFRS reporting June – November 2019 PILLAR I: CORPORATE GOVERNANCE IN THE NEWLY-UNBUNDLED POWER COMPANIES – Generation, Transmission and Distribution Introduction of corporate governance measures: supervisory boards, independent board members, codes, hiring international experts, new HR policies and procedures Development and introduction of key performance indicators (KPI) of the power sector companies and their management
Affirmation of the strategy for financial recovery of the sector, roadmap for achieving full cost recovery November 2019 New structure of electricity market Generation company “Thermal Power Stations” JC Distribution company “Regional electrical power grid ” JC Transmission company “National electrical power grids of Uzbekistan” JC Single operator, dispatching system 6 Division of cash flows: new mechanisms, opening of accounts, update of PPAs National Electricity Networks: Signing of purchase and sale of power (PPSA), technical standards and grid codes, commercial services management and billing Regional Electricity Networks: commercial systems management, approval and implementation of the loss reduction program Business plans: cost estimates, business plans for 2020 and onwards, digitization programs PILLAR II: COMMERCIALIZATION OF THE POWER SECTOR COMPANIES June – July 2019 June – November 2019 June 2020 – December 2022 October 2019 – June 2020 Study of the current state and the need for modernization and expansion of the transmission system, taking into account the promising technological structure of the power sector December 2019 New tariff methodology: balancing the interests of consumers and organizations of the electricity industry by setting mutually acceptable tariffs April 2019 - 2020 Social Protection Program • Development of a roadmap to achieve full cost recovery • Research on the availability of tariffs for electricity • Development of national social register with identification of low-income population • Improvement of policy measures on earmarked payments (benefits) for better targeted coverage of the disadvantaged population • Implementation of the Social Protection Program and earmarked payments under the reform of the energy sector • Development and implementation of capacity building program for the agencies on social issues Financial recovery • Development, implementation and monitoring of the financial recovery strategy and action plan (improvement of operations, etc.) PILLAR III: FINANCIAL SUSTAINABILITY
PILLAR IV: Investment program and private sector participation Guiding Documents: Least Cost Plan; Sector Master Plan, Investment programs 2020-2030, etc. PPP Solar, Wind and CCGT: identification of prospective sites; transaction advisors; preparation of risk mitigation and credit enhancement instruments; project documentation; PPA and tender documents Assessment and identifying list of prospective PPP projects General rules for PPP in the power sector: development of selection criteria JSC Regional Electricity Networks: Modernization and commercialization of the power distribution network system JSC National Electricity Networks of Uzbekistan: Development of project on modernization and digitization of main power networks, introduction of modern control systems (SCADA/EMS/IT), commercialization of the grid enterprises and preparation of power industry to transition to competitive power market July – December 2019 July 2019 July – December 2019 March 2020 July 2019 – April 2020 July – December 2019 Energy efficiency reforms The resolution of the President of Uzbekistan NO.PP-4422 dated August 22,2019 focuses on improving of electricity consumption efficiency by implementing modern mechanisms and standards in construction, providing compensation for installing energy-efficient equipment Individuals are given subsidies worth 30% of the cost of purchasing solar PV plants, solar water heaters and other energy efficient technologies Stage-by-stage implementation of the energy management system in compliance with international standards (ISO 50001) The Resolution prohibits the import of previously used power-generating equipment as well as energy-consuming equipment of category D Share of renewable energy sources in total energy generation will reach at least 25% (currently 10%) by 2030
Projects with the help of IFIs Electricity Transmission Modernization and Market Development; Modernization and Upgrade of Transmission Substations; District Heating Energy Efficiency Project; Energy Efficiency Facility for Industrial Enterprises, Phase 3; TA: Support for Preparation of Energy Sector Strategy in Uzbekistan. Regional Cooperation on Increasing Cross-Border Energy Trading Power Generation Efficiency Improvement Project (Talimardjan 900 MW) Regional Cooperation on Renewable Energy Integration to the Grid Sustainable Hydropower Project (3 HPPs) and others . Talimarjan Power Project; UzbekEnergo Muruntau Substation; Tashkent DH - Tashteplocentral Project and others. «Uzbekneftegaz JSC» transformation ~3 years
5+ years Today
Beginning of transformation Base formation Focus on quick wins: Elimination of financial losses Optimization of procurement of goods and materials and oilfield services Implementation of rapid operational efficiency initiatives Focus on long-term effect, continuous improvement Building a system of continuous improvement, introducing a corporate culture aimed at efficiency Introducing advanced digital technology throughout the value chain Reconfiguration of core business processes
Making effective investment decisions Capital project management Two-tier business planning Launch of operational efficiency initiatives requiring capital expenditures ~1 year Organizational transformation & Change management Key initiatives of transformation Increasing operational efficiency Organizational transformation Key capital projects Initiatives for production and key business processes that do not require significant capital investments Reorganization of the executive office of JSC Uzbekneftegaz and its subsidiaries Value chain capital projects requiring investment
Potential Projects with EU • CCGT PPP competitive bidding • IFC Sirdarya CCGT project for 1.3 GW • Wind PPP competitive bidding projects • EBRD 500 MW in Karakalpakstan region • Photovoltaic PPP competitive bidding projects • ADB Sherabad first 100 MW, up to 1,000 MW • Gas distribution projects (PPP basic, Private-operator basic) • Electricity distribution projects (Private-operator basic) • Moreover, we are interested in: • Technical assistance in implementation IFI-funded projects. • Qualified international experts to ensure high-quality execution of projects in accordance with international standards. Thank You for Attention! Download 1.74 Mb. Do'stlaringiz bilan baham: 
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