The Republic of Uzbekistan (Uzbekistan) is situated in Central Asia between the Amudarya and Syrdarya rivers. Covering approximately 448 900 square kilometres (km2), Uzbekistan is bordered by Kazakhstan to the north and west, by Kyrgyzstan to the east and Tajikistan to the southeast, and by Turkmenistan and Afghanistan to the south (https://www.gov.uz/ru/pages/territory).
In 2016, Uzbekistan's population was 31.57 million, 2 394 320 of which resided in the capital of Tashkent (www.stat.uz).
Rich in natural gas resources, Uzbekistan is the third-largest gas producer in the region, behind Russia and Turkmenistan. The energy sector accounted for around 20% of gross domestic product (GDP) and 15% of industrial output in (2016), and energy exports (predominantly gas) accounted for 17.3% of total commodity
Other significant exports are gold, copper and cotton. Real GDP amounted to USD 67.22 billion in 2016, a 29.7% increase from 2012. In addition, GDP per capita grew by 26%, from USD 1 740 in 2012 to USD 2 200 in 2016. The economy has been growing without any recessions since the mid-1990s (Read more).
Despite being energy self-sufficient, Uzbekistan's ageing electricity infrastructure and network underinvestment have led to electricity shortages, inefficiency, high losses and low reliability. At the same time, growing domestic demand and demand for gas and oil exports have put pressure on the country to increase production and hasten investment in export pipelines, increasing the need for foreign direct investment. Substantial funding is needed to improve the efficiency of Uzbekistan's existing infrastructure while increasing the productivity and profitability of the natural gas and oil sectors.
The investment climate in the country has improved since 2007 owing to legislative packages that benefit private investors, but challenges remain. Efforts to attract investment include offering privileges, financial incentives and guarantees for foreign investors, such as special investment zones and tax breaks. Investor disincentives, however, include bureaucratic barriers and unfavourable currency regulation.
Energy sector development is important for Uzbekistan's long-term goal of becoming an industrialised middle-income economy by 2030. The World Bank is supporting and assisting Uzbekistan in implementing these plans.
To expand the use of renewable energy sources, reduce energy intensity of production and implement the Strategy of Actions on Five Priority Directions of Development of the Republic of Uzbekistan in 2017-2021, presidential Decree No. PP-3012 of 26 May 2017 on the Program of Measures on the Further Development of Renewable Energy and Energy Efficiency in Sectors of the Economy and the Social Sphere for 2017-2021 was adopted.
Other goals of the Strategy of Actions 2017-2021 are to radically increase the effectiveness of ongoing reforms and create conditions for comprehensive and accelerated state and societal development, modernisation of the country and liberalisation of all spheres of life. The five priorities for the country's development are to:
- Improve state and public construction.
- Ensure the rule of law and further reform the judicial system.
- Develop and liberalise the economy.
- Develop the social sphere.
- Ensure security, interethnic harmony and religious tolerance, and implement balanced, mutually beneficial and constructive foreign policy.
Roadmaps are also planned to develop co‑operation with foreign partners in the political and diplomatic spheres, to radically develop and expand trade, economic investment and technological advances, and to promote financial and technical co‑operation. UZS (Uzbekistani so'm) 37.7 trillion (USD 8.3 billion) will be allocated for implementing all measures of the state programme.
Energy sector priorities to 2027 include increasing generating capacity, improving energy efficiency in the energy, transport and agriculture sectors, and using renewable energy sources more widely.
See also Energy Policies Beyond IEA Countries - Eastern Europe, Caucasus and Central Asia 2015
Go to the Sankey Flow of Uzbekistan
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