Energy sector – basis of economic growth

24.07.2020, 14:00

Energy sector – basis of economic growth

It is impossible to imagine life without electrical energy. Along with progress, the need for this resource increases. Energy is considered an important source of sustainable economic growth and ensuring population welfare.

In this regard, large-scale work is being carried out in Uzbekistan to modernize this industry, developing it. Power facilities and ensuring uninterrupted supply of electricity to consumers. In particular, in order to meet the needs of the population and the country’s economy in electricity, in accordance with the presidential resolution of February 1, 2019, the Ministry of Energy was established.

Currently, the significant work carried out in the energy system contributes to the provision of consumers with constant energy sources, the active development of economic sectors, and, most importantly, a radical improvement of the regional infrastructure.

The resolution of the Head of the state “On additional measures for reducing the dependence of economic sectors on fuel and energy products by increasing the energy efficiency of the economy and using available resources” of July 10 this year serves as an important legal basis for ensuring the continuity of the supply of electricity to the population, as well as oil and gas products.

According to the resolution, starting August 1, 2020, tariffs are set for the guaranteed purchase of electricity by enterprises of territorial electrical networks from newly commissioned solar, wind and biogas power plants, micro and small hydroelectric power plants, including surplus electricity produced for the own needs. From July 15 to December 31, 2020 for consumers who manufacture products and provide individual services, who have organized an additional third shift), when calculating for the used electrical energy, a reduction factor of 1.5 times is applied to the established tariff in the night period.

At the same time, the possibility of reducing the mandatory requirement for legal entities to make an advance payment for natural gas and electricity to 30 percent does not apply to state-owned enterprises and legal entities, the state share in the authorized capital of which is 50 percent or more.

Another important innovation – the law of the Republic of Uzbekistan – “On the rational use of energy” provides for the creation of an off-budget Intersectoral Fund for Energy Saving (hereinafter – the Fund). The Fund is part of the structure of the Ministry of Energy of the Republic of Uzbekistan and is a legal entity in the form of a state institution.

The Fund’s financial resources are used to finance the preparation of a feasibility study for energy efficiency projects, including improving the thermal protection of buildings and apartment buildings, with the introduction of energy efficient technologies and installations of renewable energy sources, as well as financing the preparation of a feasibility study for projects on improvement of thermal protection, energy audit;

And that’s not all. The law also states the following:

- Target parameters for saving fuel and energy resources in the sectors of the economy in 2020-2022, providing for savings of 3.3 billion kWh of electricity, 2.6 billion cubic meters of natural gas and 16.5 thousand tons of oil products;

- Roadmap to improve energy efficiency and save fuel and energy resources at large energy-intensive enterprises of the economy;

- Schedule for mandatory energy audits of enterprises with a total annual consumption of fuel and energy resources of more than two thousand tons of standard fuel or more than one thousand tons of motor fuel for 2020-2022.

To impose personal responsibility on the first heads of ministries, agencies and economic organizations for meeting the target indicators for saving fuel and energy resources and the schedule for conducting mandatory energy inspections, approved by this resolution.

The structure of the Intersectoral Fund for Energy Saving and the composition of the Supervisory Board of the Intersectoral Fund for Energy Saving were also approved.

The resolution of the Head of the state provides for the creation of a Unified Information System of the Ministry of Energy, and its launch by the end of 2021. Most importantly, on the basis of analytical data from a unified information system, a mechanism for auditing enterprises with high energy consumption will be introduced.

In conclusion, we can say that ensuring stable economic growth and wellbeing of the population through the development of the energy industry is of great importance for the new Uzbekistan. And the adopted resolution will serve to stimulate the efficient and rational use of fuel and energy resources and the widespread introduction of renewable energy sources in the country’s economy.


Deputy Speaker of the Legislative

Chamber of the Oliy Majlis,

Head of UzLiDeP faction

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