Summary

Uzbekistan has emerged to be the largest producer of electricity in Central Asia, with a total installed capacity of more than 12,500 MW. The electricity generation grew at a CAGR of 2.41% during the period 2011-2018 and is expected to continue its growth over the forecast period. The country electricity generation mix involved around 85% of the generation by fossil fuel power plants, while the rest is provided by hydro facilities. The electricity consumption is expected to surge due to the high rate of industrialization and growth in the population during the forecast period. The increasing demand of electricity is expected to drive the Uzbekistan power EPC market over the forecast period. However, the country’s power sector has constantly struggled to meet the demands of a rapidly growing population and a developing economy, due to outdated infrastructure and inefficient management which is expected to restrain the growth of the market during the forecast period.

Key Highlights
The thermal power generation sector dominated the Uzbekistan power market owing to large number of thermal power plantsthe present in the country.
The target to increase the renewables and nuclear generation capacity in a bid to decrease the carbon footprint is expected to render opportunity for the growth of the market over the forecast period.
Renewables are expected to grow owing to the increasing awareness for clean energy, to drive the makret.


Key Market Trends

Thermal Power Generation Sector to Dominate the Market


in 2018, Uzbekistan power generation mix involves thermal power plants with a total capacity of 10.6 GW producing up to 85% of the total production of electricity. In the structure of primary energy used in thermal power plants for the production of electricity and heat, the share of gaseous fuels accounts for 94 %, fuel oil 2%, and coal accounts for 4%.
Furthermore, according to the ministry of energy, the increasing demand of electricity would require the government to at least double the existing power generation capacity till 2030, since 80% of the current generating units are outdated and obsolete, with an average age of more than 30 years, so most of the existing power plant would require decommissioning.
The government in a bid to reduce the burden on the government budget for the construction of new power plants is promoting private investment in the power sector.
A majority of the new capacity is expected to come up from the thermal power plants which is expected to drive the Uzbekistan power market during the forecast period.


Increasing Industrialization to Drive the Market


The growth in the economy has fostered the number of new industries entering the processing, textiles, agriculture, manufacturing, and metallurgy markets. Due to the high rate of industrialization and a growth in the population, the demand for electricity is set to increase rapidly over the forecast period. The increasing demand of electricity is expected to drive the market over the forecast period
According to the official report from the Ministry of Energy, over the next five years, more than USD 2.8 billion will be required to upgrade the existing infrastructure, and to further add to the power generation capacity, it will expectedly cost as much as USD 14.4 billion.
The government, in a bid to reduce the pressure on the state budget, has been emphasizing on reforming the power sector. Furthermore, to enhance the flow of technology and know-how into the country, the government is looking forward to attract foreign investment in the power sector, which is expected to provide significant growth opportunities.
Additionally, the country has been a major supplier of electricity to Afghanistan and, in a bid to strengthen the ties and remove the vulnerability of price fluctuations, officials from Afghanistan and Uzbekistan signed an agreement in September 2019.
With this agreement, the demand for electricity is expected to rise further, creating an additional demand for power generation and transmission infrastructure and is expected to drive the Uzbekistan power market EPC over the forecast period.


Competitive Landscape

The Uzbekistan power EPC market is fragmented. The key players in this market Mitsubishi Heavy Industries Ltd, Masdar Clean Energy Company, Helios Energy Ltd, SkyPower Ltd, Federal Hydro-Generating Co RusHydro PAO and others.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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