Thursday13 February 2025
centralasiabusiness.com

The ADB and BCG explored the future of Uzbekistan's energy sector, discussing development strategies leading up to 2035.

A meeting was held at the Agency for Strategic Reforms with representatives from the international consulting firm Boston Consulting Group (BCG). The event was attended by Abdullah Abdukadirov, the First Deputy Director of the Agency, along with BCG specialists Igor Alexeev, Vasily Gurev, and Igor Kopytov.
АСР и BCG рассмотрели будущее энергетического сектора Узбекистана до 2035 года.

The Strategic Reform Agency has identified several key aspects that need to be considered when refining the Master Plan. One of these is taking into account the population's needs for natural gas, especially in the context of self-employed individuals who rely on methane and propane as their primary sources of income. The necessity to support small and medium-sized businesses, which require affordable and economically viable energy sources, has also been emphasized.

Particular attention has been given to the development of energy efficiency, which should be prioritized. First and foremost, efforts to enhance energy efficiency should focus on large consumers, which will help reduce production costs and alleviate pressure on the energy system. Secondly, energy-efficient technologies should be implemented in production sectors to boost business competitiveness and lower the overall energy costs of the economy.

One of the central themes has been ensuring stable gas supply to social facilities, such as schools, hospitals, and other institutions funded by the state budget. Maintaining the current level of energy supply to these facilities will help avoid increasing the burden on the budget and additional expenses for the population.

It was also noted that in the implementation of the energy transition, it is crucial to avoid an increase in coal generation and a sharp reduction in gas consumption at existing combined heat and power plants (CHPP). In this regard, it has been proposed to reconsider the mechanisms for redistributing gas capacities so that existing CHPPs can effectively serve as backup generators.

During the discussion, issues related to liquefied gas and the development of a mechanism for managing and supplying liquefied gas to the population were also raised. Meeting participants explored the possibilities of involving the private sector and outsourcing companies in the process of providing liquefied gas, which would improve distribution efficiency, enhance services, and ensure stable supplies.

As a result of the meeting, the parties agreed that BCG would refine the Master Plan based on the suggestions and recommendations made. The development of this document will be an important step towards creating a sustainable and balanced energy system in Uzbekistan, contributing to economic growth, energy independence, and environmental safety in the country.