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DEVELOPMENT OF UZBEKISTAN'S ENERGY SECTOR IN THE CONTEXT OF
THE TRANSITION TO A GREEN ECONOMY
Turayeva Adiba Ikramovna
Tashkent State University of Economics
Associate Professor at the department of
“Macroeconomic Policy and Forecasting,”
Abstract.
The article is devoted to the analysis of the development of the energy sector of the
Republic of Uzbekistan in the context of the transition to a green economy. A review of
scientific research on the topic of sustainable development is presented, and macroeconomic
trends in the country’s energy sector for the period 2016–2023 are examined, including the
growth of electricity production, investments in infrastructure, and the development of
renewable energy sources. Particular attention is paid to achievements in diversifying the
energy balance, reducing the carbon intensity of the economy, and expanding private sector
participation in the energy sector. The obtained results make it possible to conclude that there is
a positive dynamic in Uzbekistan’s transition toward a sustainable and environmentally friendly
energy system.
Keywords:
green economy, energy sector, sustainable development, renewable energy sources,
investments, Uzbekistan, decarbonization of the economy.
Аннотация.
Статья посвящена анализу развития энергетического сектора Республики
Узбекистан в условиях перехода к зелёной экономике. Проведён обзор научных
исследований по теме устойчивого развития, рассмотрены макроэкономические
тенденции в энергетике страны за 2016–2023 годы, включая рост производства
электроэнергии, инвестиции в инфраструктуру, развитие возобновляемых источников
энергии. Особое внимание уделено достижениям в области диверсификации
энергетического баланса, снижению углеродоемкости экономики и расширению участия
частного капитала в энергетическом секторе. Полученные результаты позволяют сделать
вывод о позитивной динамике перехода Узбекистана к устойчивой и экологически
чистой энергетике.
Ключевые слова.
зелёная экономика, энергетический сектор, устойчивое развитие,
возобновляемые источники энергии, инвестиции, Узбекистан, декарбонизация
экономики.
Introduction.
The topic of the green economy is actively studied both in global science and
within national economies, including Uzbekistan. A number of scholars are developing models
for the sustainable use of natural resources and are examining the economic and environmental
implications of the transition to a green economy.
Literature Review.
American economists such as Greta Green study issues of sustainable
natural resource management in developing economies, including water and waste management.
Michael Porter is well known for his research in the field of competitiveness and the green
economy. He argues that environmental innovations can promote growth and enhance the
competitiveness of national economies. Richard Florida explores the concept of sustainable
development and the impact of green technologies on the socio-economic development of cities
and regions. Joseph Stiglitz focuses on the economic consequences of environmental changes
and the need to adapt economic models to the requirements of sustainable development.
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ISSN: 2692-5206, Impact Factor: 12,23
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Journal:
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In addition, local economists such as M. Baydzhiev and M. Khodjaev study the specifics of the
green economy in Uzbekistan, including an analysis of the state of water and energy resources,
as well as the prospects for implementing green technologies.
These studies provide a foundation for building a model of a green economy in Uzbekistan and
help identify the economic and social changes necessary for a successful transition to
sustainable development.
Research Methodology.
The methodological basis of the study includes the analysis of
statistical data, a review of scientific literature, and the systematization of development trends
in Uzbekistan's energy sector within the context of the global transition to a green economy.
Analysis.
In the 21st century, energy issues have acquired a new dimension, going beyond the
traditional focus on resource supply. For the Republic of Uzbekistan, the development of the
energy sector has become not only an economic but also an environmental challenge. In the
context of striving for sustainable development, reducing the carbon footprint, and transitioning
to a green economy, the country stands on the threshold of a large-scale transformation of its
energy system.
The growing domestic demand for energy, the deterioration of a significant portion of the
energy infrastructure, the need to diversify energy sources, and improve energy efficiency
require a comprehensive approach to the development of the sector. Alongside the
modernization of traditional energy capacities, Uzbekistan is actively implementing projects for
the introduction of renewable energy sources such as solar and wind power. These initiatives
are supported at the state level and are reflected in key strategic documents. This article aims to
analyze the current state of the energy sector of the Republic of Uzbekistan, assess the key
directions of its development, and examine the challenges and opportunities facing the country
in the context of the global transition to environmentally sustainable energy.
In recent years, Uzbekistan’s energy sector has shown stable positive dynamics and has become
one of the most actively reformed sectors of the national economy. Electricity production
increased from 59 billion kWh in 2016 to 78 billion kWh in 2023, indicating a significant
expansion of generation capacity. Considerable attention is paid to infrastructure investment:
between 2017 and 2022, total investment in the electricity sector exceeded USD 10 billion,
enabling the commissioning of additional capacities exceeding 5,000 MW. In 2019, the country
began actively implementing reforms aimed at liberalizing the electricity market, increasing
transparency in governance, and attracting private capital through public-private partnership
mechanisms. An institutional separation of electricity generation, transmission, and distribution
was carried out, creating conditions for a competitive environment. Particular attention is being
given to the development of renewable energy sources. While their share in the energy balance
was negligible in the early 2020s, by 2024 it had reached 18%, and by 2030 it is planned to
increase this figure to 40% through the commissioning of large solar and wind power plants
implemented in partnership with international investors. In addition, in 2024 an agreement was
signed with the Russian Federation to build the country’s first nuclear power plant with a
capacity of 6×330 MW, marking a new phase in the diversification of the energy mix.
Furthermore, the government has launched large-scale waste-to-energy projects, with planned
capacity reaching up to 2.1 billion kWh annually. Together, these measures aim to strengthen
energy security, reduce the carbon intensity of the economy, and form a sustainable and
balanced energy system aligned with Uzbekistan’s long-term “Green Growth” and sustainable
development goals.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 06,2025
Journal:
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page 494
Table 1
Economic Indicators of Energy Sector Development in Uzbekistan
Year Electricity
Generation
(billion kWh)
Investments in
the
Energy
Sector
(billion
USD)
Installed
Capacity (MW)
Share
of
Renewable
Energy
in
Electricity
Generation (%)
2016 59,0
0,9
400
2,0
2017 61,2
1,1
500
2,5
2018 63,8
1,4
600
3,2
2019 66,5
1,6
700
4,5
2020 69,3
1,8
800
7,0
2021 73,0
1,7
900
10,0
2022 75,4
1,9
1050
15,0
2023 78,0
2,0
1200
18,0
According to data on the development of Uzbekistan’s energy sector for the period from 2016
to 2023, there has been steady growth in key economic indicators. Electricity generation
increased from 59 billion kWh in 2016 to 78 billion kWh in 2023, representing a 32.2%
increase. This growth is attributed to the commissioning of new generation capacities and
improved efficiency of existing facilities.
Investments in the energy sector also rose significantly. Between 2016 and 2023, investments
more than doubled, reaching USD 2.0 billion in 2023. This increase indicates the ongoing
modernization of energy infrastructure and growing confidence from both foreign and domestic
investors in the sector.
With the commissioning of 400 MW of new capacity in 2016 and up to 1,200 MW in 2023,
Uzbekistan has significantly expanded its electricity production capabilities. This reflects the
country’s policy of modernization and efforts to strengthen energy security. In total, more than
5,000 MW of new capacity was added over the seven-year period.
Moreover, the share of renewable energy sources (RES) in electricity generation increased from
2% in 2016 to 18% in 2023. This growth is the result of an active government program
promoting the development of solar and wind energy, as well as the construction of large-scale
RES facilities in partnership with international investors. By 2023, solar and wind power plants
were already making a significant contribution to the country’s energy balance.
Overall, the data for the period 2016–2023 show that Uzbekistan's energy sector is on a path
toward diversifying energy sources, improving energy efficiency, and attracting foreign
investment, aligning with global trends in sustainable development and economic
decarbonization.
In the context of Uzbekistan’s strategic transformation of its energy sector, special attention in
recent years has been given to the development of alternative and renewable energy sources,
such as solar and wind power. This direction has become a key element of the national policy
1
State Committee of the Republic of Uzbekistan on Statistics: www.stat.uz
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 06,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 495
aimed at decarbonizing the economy, diversifying the energy mix, and reducing dependence on
fossil fuels.
Since 2019, Uzbekistan has been actively implementing ambitious projects in cooperation with
leading international investors, including Masdar (UAE), ACWA Power (Saudi Arabia), Total
Eren (France), and others. As a result of this approach, from 2016 to 2023, the installed
capacity of renewable energy increased from 100 MW to 3,500 MW, and annual generation of
green energy grew almost 28-fold — from 0.5 billion kWh to 14 billion kWh.
Investments in the RES sector have also shown strong growth: in 2016, they amounted to only
USD 0.1 billion, while by 2023, they had reached USD 2.8 billion. This demonstrates the strong
interest of private capital and international financial institutions in the sustainable development
of Uzbekistan's energy sector.
The share of solar and wind energy in the country's total energy balance has also increased
significantly — from 1% in 2016 to 16% in 2023.
Below are the main economic indicators of RES development for the specified period.
Table 2
Key Economic Indicators of Renewable Energy Development in the Republic of
Uzbekistan (2016–2023).
Year
Renewable Energy
Capacity (MW)
Renewable
Energy
Generation
(billion kWh)
Investments
in
Renewable
Energy (billion
USD)
Share
of
Solar/Wind
Energy (%)
2016
100
0,5
0,10
1,0
2017
120
0,7
0,12
1,2
2018
150
1,0
0,20
1,6
2019
200
1,4
0,40
2,5
2020
300
2,8
0,60
4,0
2021
700
5,2
1,20
7,5
2022
1800
11,3
2,40
13,0
2023
3500
14,0
2,80
16,0
The table demonstrates a significant increase in capacity, generation, and investment in
Uzbekistan’s renewable energy sector from 2016 to 2023, as well as a steady rise in the share of
solar and wind energy in the country’s overall energy balance.
Data from 2017 to 2023 confirm the successful development of the renewable energy sector in
Uzbekistan, which contributes not only to the diversification of the energy mix but also to the
reduction of the carbon intensity of the national economy, in line with international sustainable
development standards.
The analysis of the dynamics of Uzbekistan’s energy sector development over the period 2016–
2023 reveals steady positive trends. There has been consistent growth in electricity production,
increased investment activity, expansion of generating capacity, and a rising share of renewable
energy in the national energy balance. These factors reflect the government's targeted efforts to
2
Impiled by the author based on open data from the Ministry of Energy of the Republic of Uzbekistan.
www.minenergy.uz
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 06,2025
Journal:
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page 496
modernize the sector and transition toward an environmentally sustainable energy system.
These results provide the foundation for drawing final conclusions.
Conclusion. In recent years, the Republic of Uzbekistan has shown steady progress in the
development of its energy sector, reflected in increased electricity production, rising investment
volumes, and expanded use of renewable energy sources. The introduction of new generation
capacities, institutional reforms, and cooperation with international investors have strengthened
energy security and diversified the country's energy mix. The shift toward green energy
contributes to lowering the carbon intensity of the economy and aligns with the goals of
sustainable development. Continuation of these processes will enable Uzbekistan to strengthen
its position on the path to environmentally safe and inclusive economic growth.
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