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Annexure Monthly Report - April, 2018

Power Energy Overview, Monthly News Picks, Macro update, etc.

· Monthly report

Overview of Power Energy sector of Uzbekistan

Due to the growing demand for power energy driven by economic growth in the country, Uzbekistan is set to reform power energy sector. Uzbekistan is the largest electricity producer in Central Asia with total installed capacity of c.14.6GW, as of 2017. There are 45 power plants (16 by UzbekEnergo – state-owned power energy company). UzbekEnergo generates up to 90% of the power energy while the rest is produced by autonomous thermal power stations of the industrial enterprises and small hydroelectric power stations of the Ministry of Agriculture and Water Resources. The electricity is transmitted and distributed via power transmission lines (with 0.4 - 500 kV voltage ranges) whose total length currently exceeds 243,000 km.

Power generation sources are largely focused on thermal power (natural gas, coal, etc.) while renewable energy makes a small portion of the capacity. Uzbek government plans to increase the share of renewable energy to 19% by 2025E from 13% currently.

Power Energy Growth

Source: Presidential decree

Hydropower is the only main source among renewable energy sources while solar power contributes very small amount to the overall power generation. By 2025E, it is planned to achieve more power generation from solar and wind energy. Renewable energy has significant growth potential in Uzbekistan. According to Asian Development Bank (ADB), the country has 18 GW hydropower potential but only 1.8 GW has been developed so far. Solar power also has a great potential thanks to the favorable weather conditions in Uzbekistan. Uzbekistan gets between 2,410 and 3,090 hours of sunshine every year according to UN studies and the ADB estimates that about 3.8 million hectares of land in Uzbekistan meet the basic technical requirement for hosting solar energy facilities.

Renewable energy growth

Source: Presidential decree

UzbekHydroEnergy, newly established entity, plans to implement 74 projects (42 new projects and 32 modernization projects) till 2030 according to the Presidential Decree signed on May, 2017. Project implementation will be carried out in 2 phases: 1) 32 projects with investment amount of US$2.6bn (foreign loans in amount of over US$1.0bn) will be carried out during 2017-2025 and 2) additional 42 projects with investment amount of US$1.7 (US$0.9bn of foreign loans) are planned during 2018-2030 period. If successfully executed, these projects will add 3.6GW of capacity. Part of foreign loans come from China as joint implementation of mini hydropower plants were discussed with Chinese counterparts during Uzbek President’s visit to China in May, 2017.

Hydro power projects byHydro Projects by UzbekHydroEnergy

Source: Presidential decree

Power Energy capacity growth estimates

Source: Presidential decree

Please contact us at sales@annexurefs.com if you would like to get support from Annexure Financial Solutions on topics including but not limited to:

  • Detailed insights on Uzbek power sector including renewable energy
  • Detailed information on 32 hydropower projects planned during 2017-2025
  • Entry strategies on Uzbek hydropower sector (e.g. equity investments, EPC + financing, etc.)

Please send us an email at sales@annexurefs.com if you like to get free access to the full report which includes monthly news picks, update on Uzbek capital markets as well as macro economy and Annexure deal flow, etc.

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