Uzbekistan is set to strengthen its electricity supply through an ambitious initiative supported by the World Bank, which has approved a $150 million concessional credit to develop small hydropower plants (SHPPs) across the country.
Scheduled for implementation from 2025 to 2030 by the Ministry of Energy, the project aims to expand distributed energy generation—particularly in rural and underserved regions—by mobilizing strong private sector participation, including local SHPP developers and financial institutions.
Uzbekistan’s electricity demand is projected to more than double by 2030, exceeding 120 billion kilowatt-hours. Despite recent gains in generation capacity, approximately 10% of current demand remains unmet, resulting in frequent power outages in remote areas due to transmission and distribution limitations.
To address these challenges, the government plans to install nearly 3,000 small hydropower plants by 2026, adding 160 MW of installed capacity and delivering electricity to an estimated 280,000 additional people. These small-scale plants—typically ranging from 100 kW to 5 MW—will primarily operate along existing irrigation canals, offering a cost-effective and environmentally sustainable solution.
Small hydropor offers a practical and efficient solution for energy supply in remote areas,” said Tatiana Proskuryakova, World Bank Regional Director for Central Asia. “This new project will help unlock private investment and expand access to clean electricity, which is essential for inclusive economic growth.”
Under the World Bank-supported program, SHPP construction will be financed through local banks, with an additional $38 million in commercial funding expected to scale up hydropower infrastructure nationwide. By 2030, the initiative aims to install up to 150 MW of new capacity, generate over 520 gigawatt-hours of renewable electricity annually, and reduce CO₂ emissions by around 430,000 tons.
Preliminary assessments have identified roughly 270 viable SHPP sites along Uzbekistan’s irrigation canals, with 93% of those suitable for installations between 100 kW and 1,000 kW. Power generated through the program will be purchased by JSC Regional Electric Power Networks, enhancing energy diversification and grid reliability.
Beyond energy security and climate benefits, the initiative is expected to spur job creation in local industries and small and medium-sized enterprises (SMEs), stimulate economic growth in rural areas, and contribute to broader regional development goals.