Photo: Press Service of the Ministry of Finance of Uzbekistan
The World Bank has approved a concessional loan of $150 million to support a large-scale project aimed at developing small hydropower and improving the reliability of electricity supply in Uzbekistan, the bank’s press service announced.
The project, scheduled for implementation between 2025 and 2030, will emphasize active participation from the private sector, including local small hydropower developers and banks.
According to projections, Uzbekistan’s electricity demand is expected to double by 2030, surpassing 120 billion kilowatt-hours annually. Despite recent increases in generation, about 10 percent of the population’s and businesses’ electricity needs remain unmet, leading to regular power outages—particularly in rural and energy-poor regions. The main cause is the country’s outdated transmission and distribution infrastructure.
The new initiative will focus on constructing small hydropower plants (HPPs) with capacities ranging from 100 kW to 5 MW, using existing irrigation canals. This is expected to enhance energy reliability in remote areas, create jobs, and stimulate the development of small and medium-sized enterprises.
The Uzbek government plans to build around 3,000 small hydropower stations with a combined capacity of 160 MW by 2026. These plants could supply electricity to an additional 280,000 people and attract roughly $38 million in private investment for expanding hydropower infrastructure.
By 2030, the project aims to install up to 150 MW of total capacity in small HPPs, generating more than 520 gigawatt-hours of clean electricity annually. This output is projected to reduce carbon dioxide emissions by up to 430,000 tons per year. The electricity generated will be purchased by the national grid and directed to households and businesses in under-served regions.
Around 270 potential sites for new small HPPs have already been identified, most of them along operational irrigation canals. The project also includes technical assistance, training programs, and measures to facilitate private sector entry into Uzbekistan’s small hydropower market.
