Tajikistan to supply electricity from Rogun HPP to Uzbekistan

The governments of Tajikistan and Uzbekistan have reached a 20-year agreement on the supply of electricity from the Rogun Hydropower Plant (HPP). This was reported by the legal information portal of the Ministry of Justice of Tajikistan.

According to the new energy cooperation agreement between the two countries, Tajikistan will supply electricity generated at the Rogun HPP to Uzbekistan. The draft agreement has been approved by the Tajik government.

The volume and delivery schedule of the electricity will be coordinated between Rogun HPP OJSC and Uzenergoinspektsiya JSC, based on peak electricity shortages in Uzbekistan’s energy system.

The price of 1 kilowatt-hour of electricity is set at 3.4 US cents, with a zero VAT rate. The tariff will be indexed annually by 1 percent, starting from the second year of the agreement’s implementation.

Electricity will be supplied according to a schedule agreed upon by the two countries’ energy system operators, primarily during hours when shortages occur in Uzbekistan. Until the Rogun HPP is fully completed, electricity will be supplied only during the growing season (April 1 to September 30). Once fully operational, the supply will continue year-round on a monthly basis.

Transmission will take place via interstate power lines under DAP (Delivered at Place) terms, in accordance with international Incoterms 2010 standards.

The agreement also outlines procedures for resolving potential disputes through negotiations and includes a provision for extending the contract period.

The agreement is valid for 20 years and will be automatically extended every 10 years unless one of the parties notifies the other of its intent to terminate it at least six months before the expiration date.

Rogun HPP background

The Rogun Hydropower Plant is Tajikistan’s largest energy project, located on the Vakhsh River. Construction initially began in 1976 but was halted following the collapse of the Soviet Union.

The project was revived in 2016 and has since become a top priority in Tajikistan’s national energy strategy.

Upon completion, Rogun HPP will be the largest hydropower plant in Central Asia, with a planned capacity of 3,600 megawatts.

Tajikistan has been supplying electricity to Uzbekistan since 2018, mainly during the growing season, based on earlier bilateral agreements.

The new long-term deal reflects the countries’ intention to strengthen energy cooperation within the framework of a unified Central Asian energy system and aims to ensure stable electricity supply across the region.

It is worth noting that the construction of the Rogun HPP was previously opposed by the first President of Uzbekistan, Islam Karimov, who made several critical remarks about the project.