Private operators manage electricity networks in three regions next year

Starting next year, private operators will be involved in managing the electricity networks in Samarkand, Jizzakh, and Syrdarya regions. This initiative was announced on November 4 during a meeting chaired by President Shavkat Mirziyoyev, which focused on the transformation of Uzbekistan's electric power sector and the integration of private management in regional electric networks.

In recent years, the structure of the electric power industry has been reformed to meet modern demands. The processes of electricity generation, transmission, and distribution were separated into distinct companies, paving the way for increased investment. Since then, approximately $4.3 billion has been invested, leading to the creation of 5.7 gigawatts of new power capacity.

Currently, four key enterprises in the network — "Uzbekistan National Electric Networks", "Regional Electric Networks", "Issiklik Electr Stations", and "Uzbekgidroenergo" joint-stock companies — have achieved international credit ratings.  The next step aims to turn these enterprises into competitive entities, essential for ensuring consistent electricity supply to consumers and attracting independent investments.

The meeting outlined key priorities, with a strong focus on reducing costs through project optimization, minimizing losses, and improving procurement.

Under a public-private partnership model, it is anticipated that $4 billion in investments could be channeled into the modernization of distribution networks. Private operators will take on the management of these networks in the three targeted regions starting next year.

In line with the competitive energy market concept adopted last year, energy companies will prioritize efficiency and transformation. A modern management system will be introduced, with digital transformation extending to all levels of the network.

This approach aims to enhance cost management, making next year a pivotal period for economic and operational improvements in Uzbekistan’s energy sector.