The World Bank is investing $100m to help Uzbekistan improve its energy supply and connect 150,000 smart meters.

The concessional credit will support Uzbekistan’s efforts to enhance the integration of renewable energy into its electricity distribution networks and improve supply reliability in priority regions. Uzbekistan’s Regional Electric Power Networks (REPN) will provide $50mn in co-financing.

Uzbekistan’s energy system faces significant inefficiencies, including technical distribution losses estimated at around 13% as of 2024. These losses are primarily due to aging and overburdened infrastructure; more than half of the distribution network facilities have been in operation for over 30 years, exceeding their operational lifespan and contributing to frequent power disruptions.

Urgent investment is needed to modernise Uzbekistan’s distribution networks and support the country’s ambitious goal of deploying 25GW of renewable generation by 2030. Without critical upgrades, the existing power system will be unable to accommodate the planned expansion.

The energy sector also faces significant commercial losses, particularly within distribution networks, which place a heavy fiscal burden on the government. To ensure long-term sustainability, the authorities are reforming the operational and financial models of the distribution system to improve profitability and attract private investment.

“The World Bank’s financing will support Uzbekistan’s government programme to modernise and expand the electricity distribution infrastructure through 2030, with total investment needs estimated at $3bn,” said Tatiana Proskuryakova, World Bank director for central Asia. “We hope other development partners and private investors will join us in supporting REPN in this crucial endeavour.”

With $150m in combined financing, REPN will develop critical infrastructure over the next five years to enhance the integration of renewable energy into distribution networks and ensure a reliable electricity supply in priority regions, including the Republic of Karakalpakstan and Surkhandarya region. Key infrastructure improvements include construction and modernisation of 6000km of low-voltage distribution lines, replacement and installation of 1200 distribution transformers with a total capacity of 250MVA, connection of 150,000 smart meters to help reduce commercial electricity losses in REPN-managed networks, and installation of 4000 concentrators to enable future automation and digitalisation of distribution networks, transforming them into a modern and efficient system.

Additionally, the programme will support investments aimed at strengthening REPN’s operational capacity and financial sustainability, specifically developing a distribution planning methodology, along with operational procedures and processes for connecting distributed renewable energy sources, as well as enhancing revenue performance through improved financial planning and modernising corporate management systems, with a focus on accounting, financial management and corporate governance.

By 2029, the programme is expected to achieve a 90% customer satisfaction rate with REPN’s service quality, and expand the capacity of distribution networks to integrate up to 50MW of renewable energy generated by small and medium enterprises and households. It should also reduce greenhouse gas emissions by up to 450,000 tons of CO₂ annually and increase female representation in REPN’s technical and managerial roles from 9% in 2025 to 14%.

For more on the World Bank’s activities in Uzbekistan, go to www.worldbank.org/en/country/uzbekistan.