Why is this important
153.6 billion subsidies ($12.8 million) for 9 months stimulate the transition to solar energy, reduce the load on the energy system, and reduce the electricity deficit (especially in summer). Khorezm leads (42.6 billion) due to high solar radiation, electricity shortage, and population activity. The subsidy of 1000 soums/kWh pays off the investment in the panel in 5-7 years. This is part of the 2030 30% RES strategy.
What happened
- Solar panel owners received 153.6 billion soums ($12.8 million) in subsidies for January-September;
- Khorezm region — 42.6 billion (lead);
- Karakalpakstan — 22.4 billion;
- Bukhara — 15.3 billion;
- Tashkent — 10.7 billion;
- Tashkent region — 8.2 billion;
- Subsidy — 1000 soums for each additional kWh (from April 2023).
Why is Khorezm leading?
- High solar radiation: Khorezm is one of the sunny regions of Uzbekistan (more than 300 sunny days a year), ideal for solar energy.
- Electricity shortage: the region experiences an acute electricity shortage in the summer due to irrigation, air conditioning. Solar panels solve the problem.
- Population activity: Khorezm residents are actively installing panels thanks to subsidies, affordable loans, and low tariffs for equipment imports.
- Government support: local authorities are stimulating the transition to renewable energy sources, organizing information campaigns, and simplifying the connection to the network.
Context
- Electricity shortage: Uzbekistan experiences electricity shortages during the summer (peak consumption – air conditioners, irrigation). Solar panels reduce the load on the network.
- Solar potential: Uzbekistan is one of the sunnyest countries in the world (more than 300 days a year), ideal for solar energy.
- Electricity tariffs: for the population — 300-500 soums/kWh. Solar panels generate electricity at a cost of 100-150 soums/kWh, which is more affordable.
- Equipment imports: Most panels are imported from China (cheap and high-quality). Exemption from VAT and duties reduces the cost by 12-25%.
- Ecology: solar energy reduces CO2 emissions, improves the environment, and aligns with Uzbekistan’s climate commitments.
