Tashkent, Uzbekistan (UzDaily.com) — The World Bank’s Board of Executive Directors has approved a concessional loan of US$100 million to Uzbekistan to support the state program aimed at integrating renewable energy sources (RES) into distribution networks and improving the reliability of electricity supply in several priority regions. Additionally, the Joint Stock Company “Regional Electric Networks” (JSC “RES”) will allocate US$50 million of its own funds to implement the program.

This marks the first time in the history of cooperation between the World Bank and Uzbekistan that the Program-for-Results (PforR) instrument is being used, which provides financing upon achievement of specific results. This approach is typically employed to support the most significant government initiatives.

According to 2024 data, Uzbekistan’s power system faces serious challenges: technical losses during electricity distribution reach 13%, while more than half of the distribution network assets have been in operation for over 30 years, causing frequent outages and failures.

Modernization of the network infrastructure is also essential given the country’s ambitious plans to expand the share of renewable energy. By 2030, Uzbekistan aims to increase renewable generation capacity to 25 GW. Without updating the distribution networks, integrating new renewable energy suppliers will be impossible.

Tatiana Proskuryakova, World Bank Director for Central Asia, emphasized that the total volume of investments required within the program framework through 2030 is estimated at US$3 billion. The World Bank hopes that other international and private partners will support Uzbekistan’s efforts.

Under the program, JSC “RES” plans to invest US$150 million over the next five years in key areas, including the construction and modernization of 6,000 kilometers of power lines, installation and replacement of 1,200 transformers with a capacity of 250 MVA, connection of 150,000 “smart” meters, and deployment of 4,000 data concentrators to digitize the network.

The program also foresees institutional reforms such as the development of new procedures for planning and connecting renewable energy suppliers, improving financial stability and profitability, as well as enhancing corporate governance and accounting.

By 2029, the program is expected to achieve a 90% customer satisfaction rate, enable the acceptance of up to 50 MW of energy from small producers and households, reduce greenhouse gas emissions by 450,000 tons of CO₂ annually, and increase the share of women in technical and managerial positions at JSC “RES” from 9% to 14%.

The project will cover priority regions, including the Republic of Karakalpakstan and Surkhandarya Region, and will represent a key step toward the modernization of Uzbekistan’s energy sector.