Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
country’s electricity consumption was 48,041 gigawatt-hours, with industry 
(39% of the total) and agriculture (33%, mainly for irrigation) accounting for 
bulk of the consumption (Figure 2.10). Household electricity consumption 
has also increased with the increased ownership of appliances. Electricity 
consumption per capita gradually decreased from 1990–2016, but it slowly 
increased from 2017–2018 (Figure 2.11). 
GWh = gigawatt-hour.
Source: Enerdata. https://www.enerdata.net/ (accessed 14 August 2019).
kWh = kilowatt-hour.
Source: Enerdata. https://www.enerdata.net/ (accessed 14 August 2019).
Figure 2.10: Electricity Consumption, by Sector, Uzbekistan, 
1990–2018
(GWh)
Figure 2.11: Electricity Consumption per Capita, Uzbekistan,
1990–2016 
(kWh)
0
20
25
15
5
10
30
35
40
45
Oil
Gas
Coal
Electricity
Heat
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
GWh ‘000
Industry
Transport
Residential
Services
Agriculture
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
kWh
0
500
1,000
1,500
2,000
2,500

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Infrastructure as a Foundation for Job Creation
2.2.3. Challenges confronting the power sector
Legal, institutional, and regulatory issues. 
The energy sector lacks a 
comprehensive development plan, but the government has been working 
on a draft. The sector is guided by the Development Strategy for 2017–2021 
and by operational plans contained in presidential resolutions that prioritized 
the following areas: (i) improving electricity efficiency and reducing energy 
intensity; (ii) developing renewable sources of energy to supply 21% of the 
country’s energy needs; (iii) shifting from consumption of natural gas to coal; 
(iv) harnessing hydropower potential; (v) increasing electricity generation 
to support the growth of industries and to increase electricity exports;
(vi) reducing losses from gas flaring; and (vii) increasing production of oil and 
gas by improving the rate of oil recovery, oil conversion, and gas processing 
efficiency (ADB 2012 and Global Legal Insights 2017). 
With finalization of the energy plan still pending, energy projects in Uzbekistan 
have been identified and implemented in an ad hoc manner. The lack of a 
coordinated and integrated energy sector plan often leads to inefficient use of 
energy resources and underinvestment in critical energy infrastructure. There 
is no systematic approach to identifying and prioritizing the most-efficient 
energy projects. Feasibility studies and cost–benefit analyses of future 
projects are not conducted regularly. Institutions involved in the energy sector 
have limited capacity to plan and manage energy projects, leading to delayed 
implementation and escalated costs of projects. One case of concern is the 
100 MW Samarkand Solar-Photovoltaic (PV) station, whose construction has 
been delayed due to a series of retenders with various contractors. 
Until 2019, Uzbekistan did not have a dedicated and independent regulatory 
unit to ensure fair competition, employ effective tariff-setting methodology, 
and set and monitor service standards. The regulatory responsibility was 
shared between the Ministry of Finance and the State Committee, and the 
role of each was not clearly identified. In February 2019, the President ordered 
the establishment of the new Ministry of Energy as part of the effort to 
restructure the power sector. The Ministry of Energy was formed in March; 
one of its functions is to develop and implement regulations in the oil, gas, and 
power subsectors. This initial reform initiative is intended to help improve the 
performance of the energy sector. 

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