The Asian Development Bank (ADB) has approved a $200 million loan that will help Uzbekistan modernize and digitize its electricity distribution system to improve energy efficiency and reliability of electricity services, a Podrobno.uz correspondent reports.
As part of the project “Digital Transformation and Improving the Resilience of Distribution Networks,” 26 distribution substations in the regions of the country will be upgraded to digital substations, including a supervisory control and data acquisition (SCADA) system. Digital protection relays and climate-resilient design will improve the operational reliability and resilience of substations to natural disasters and extreme weather events, preventing regional power outages.
“Modernizing Uzbekistan’s aging distribution network is critical to the country’s long-term green and low-carbon strategy. We are pleased to support this project, which will not only improve the quality of energy services, but also facilitate the transition to clean energy by reducing electricity losses that lead to increased emissions greenhouse gases,” noted ADB Director General for Central and Western Asia Evgeny Zhukov.
The distribution system of Uzbekistan serves 7.6 million residential and industrial consumers. Despite achieving 100% household electrification, the country suffers from unreliable electricity supply due to aging and overburdened infrastructure built mainly in the 1960s. Power outages persist and are especially severe in winter, when lower temperatures lead to increased demand for electricity for heating, making it difficult for critical public services such as schools and clinics to operate.
Energy demand in Uzbekistan is projected to further increase from 67 terawatt-hours in 2019 to 120.8 terawatt-hours in 2030. The government plans to build an additional 17 gigawatts (GW) of capacity on top of the existing 12.9 GW capacity, including 8 GW of renewable energy projects by 2030.
“This project will allow Uzbekistan to reliably supply the additional energy the country needs to meet growing demand. Upgrading transmission and distribution systems will also allow the country to integrate more renewable energy into the power grid, given that smart and flexible systems can better manage the variability of renewable energy sources such as solar and wind,” said ADB senior energy specialist Sung Dak Kim.
The ADB project will also help strengthen the financial management capacity of the state distribution company Regional Electric Networks (RES). In addition, a technical assistance grant in the amount of $250 thousand will be provided to support the institutionalization of gender mainstreaming in the RES and the promotion of the participation of women and girls in the energy sector, including through the training of female students as part of the ongoing partnership educational program between the RES and Tashkent State Technical University.
In addition, the French Development Agency (FDA) will provide 70 million euros (about $75 million) in co-financing, which will be partly administered by ADB.
Let us recall that Uzbekistan joined the ADB in 1995. To date, the bank has provided $10.8 billion in loans, grants and technical assistance to the country. ADB is committed to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. ADB was created in 1966 and includes 68 countries, of which 49 countries are in the Asia-Pacific region.
Source : PODROBNO
