Transforming economic governance in Uzbekistan’s energy sector

The Bank’s engagement in Uzbekistan’s energy sector began with foundational reforms in 2018, supporting the government’s efforts to modernise sectoral governance and create a transparent, competitive market. Early assignments focused on unbundling the state utility, establishing an independent regulator and drafting new electricity legislation. These reforms laid the groundwork for the introduction of competitive renewable energy auctions, with the Bank providing technical assistance and backstopping the first wind and solar tenders.

Building on this foundation, the Bank’s support then expanded to include the development of multi-year renewable investment plans, grid modernisation and the design of market-based incentive schemes. Capacity building for local authorities and the creation of robust regulatory frameworks ensured that Uzbekistan was equipped to attract private investment at scale.

Since 2022, these efforts have translated into tangible results. By mid-2025, more than 3 GW of renewable generation capacity had been financed by the EBRD, often in partnership with other international financial institutions and commercial lenders, alongside major upgrades to transmission infrastructure and the integration of battery storage. The adoption of a new electricity law in 2024 further strengthened the sector’s regulatory environment, supporting continued investment and market growth.

Uzbekistan’s experience shows how sequenced policy reforms, anchored in strong governance and market design, can unlock significant private and public investment, accelerating a country’s transition to clean, competitive energy, improving energy security, and supporting access to reliable and affordable energy for citizens and firms.