The country is focusing on increasing renewable energy use and optimizing water resource potential. Small and micro hydropower plants are essential for providing energy to remote regions, lowering grid losses, and encouraging private investment.

A resolution adopted last year outlines plans to build about 3,000 small and micro hydropower plants totaling 164 megawatts, with private-sector involvement.

So far, 64 facilities with a total capacity of 41.6 megawatts have been commissioned, representing just 25% of the planned capacity. Out of nearly 3,000 scheduled projects, only 932 have assigned initiators. Additionally, the utilization rate of the $150 million in concessional resources allocated with World Bank involvement has been considered inadequate.

Entrepreneurs and investors continue to have numerous questions about the requirements for building plants and selling the electricity produced.

It was proposed that auctions set a minimum electricity purchase tariff alongside the starting project price, with variations based on plant capacity. This approach aims to prevent projects from winning at a “zero” price but never being carried out, while also providing clear and stable conditions for investors.

Moreover, the design and construction of micro hydropower plants with capacities up to 100 kilowatts will follow a simplified process. Specifically, projects up to 50 kilowatts will not require review of urban planning documentation or state architectural and construction oversight.

Alterations to canals, rivers, and riverbeds will be allowed to increase water head. Additionally, small and micro hydropower plants can be built at water management facilities for their own use without requiring an auction.

A digital platform will be launched to manage all processes, from selecting project sites to commissioning and operating facilities. Additionally, a comprehensive methodological guide for design, construction, and operation will be created, along with a standard procedure for involving the private sector in project implementation.

A major ongoing challenge is the sector’s heavy reliance on imports, with 90 percent of hydropower units and components for small and micro hydropower plants currently imported.

The significance of utilizing the experience of Uzbekhydroenergo Joint-Stock Company was highlighted, as it has constructed 46 small and micro hydropower plants and offers entrepreneurs full services for design, construction, installation, and equipment supply. A detailed list of hydropower units and components suitable for localization will be prepared. These proposals will then be shared with entrepreneurs and investors.

The country’s river and canal system spans more than 173,000 kilometers. The presentation highlighted significant opportunities for developing small and micro hydropower plants on concrete-lined canals. Agencies were assigned to create a detailed inventory of these structures and identify potential sites for upcoming projects.

By 2030, these plants are expected to have a total capacity of 204.8 megawatts, producing 620 million kilowatt-hours of clean electricity each year. This would enable providing green energy to 350,000 households, conserve 187 million cubic meters of natural gas annually, and reduce carbon dioxide emissions by 311,000 tons.

Beginning with the new academic year, a dual education system will be implemented to train skilled professionals in small-scale green energy. Energy companies, including small hydropower plants, will function as practical training sites for students.

The Head of State instructed the responsible officials to speed up the implementation of planned projects, attract more private investment to the sector, use financial resources efficiently, localize equipment manufacturing, and train skilled personnel.