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Achieving the Sustainable Development Goal of Affordable and Clean Energy in Uzbekistan: Energy Sector Reforms, Ongoing Efforts, and Priority Tasks

04-08-2026 19

    Today, one of the most important challenges facing countries around the world is ensuring economic growth while simultaneously mitigating the consequences of climate change, reducing greenhouse gas emissions into the atmosphere, and ensuring energy security. From this perspective, the seventh goal adopted within the framework of the United Nations (UN) Sustainable Development Goals (SDGs) — Affordable and Clean Energy — is acquiring strategic importance for all countries.

    According to the UN, the main objectives of this goal are to expand the population's access to modern energy services, increase the share of renewable energy, improve energy efficiency, and strengthen international cooperation in this field.

    Uzbekistan is among the states that have aligned these global goals with their national development strategy. In recent years, the country has been implementing wide-ranging measures to fundamentally reform the energy sector, expand private sector participation, accelerate the development of solar and wind energy, and transition to a "green economy."

    The reforms carried out in 2024–2026 are of particular importance not only for modernizing the country's energy system but also for fulfilling its international environmental commitments.

    Priority Directions for Implementing the Seventh Goal in Uzbekistan

    Within the framework of achieving the Affordable and Clean Energy goal, Uzbekistan's policy rests on several main priority directions.

    First, special attention is being paid to sharply increasing the share of renewable energy sources in electricity generation. The country's climatic conditions are distinguished by high levels of solar radiation and sufficient wind resources. This creates significant opportunities for implementing renewable energy projects.

    Second, the practice of building large energy facilities on the basis of public-private partnerships by attracting private investment is expanding. This makes it possible to commission new capacities without placing an excessive burden on the state budget.

    Third, energy-saving technologies are being widely introduced, the installation of small-capacity photovoltaic stations by households is being encouraged, and a mechanism has been put into practice for selling surplus electricity to the general grid.

    Fourth, large infrastructure projects are being implemented with the participation of international financial institutions and development banks. While strengthening the country's energy security, these projects are also enhancing its investment attractiveness.

    Results Being Achieved in the Green Energy Sector

    Over the past two years, the country has recorded its highest growth rates in the renewable energy sector.

    According to the Ministry of Energy, by the end of 2025, electricity generation in Uzbekistan had reached 86.7 billion kWh, which is nearly 46% more than in 2016. At the same time, the share of renewable energy sources is also growing year by year.

    By the beginning of 2026, a total of 15 solar photovoltaic stations and 5 wind power stations were operating in the country. Their total installed capacity amounts to 5,582 MW. In just the first months of 2026, these stations generated more than 1 billion kWh of "green energy." This figure is nearly 40% higher than in the same period of the previous year.

    This result shows that the renewable energy sector is rapidly becoming an important segment of the country's industry.

    Another important aspect is that, thanks to this volume of electricity generation, hundreds of millions of cubic meters of natural gas are being saved, and the release of hundreds of thousands of tons of harmful gases into the atmosphere is being prevented. This is of great importance not only in terms of economic benefit but also in terms of environmental sustainability.

    Major Investment Projects Being Implemented in the Renewable Energy Sector

    One of the most important changes in Uzbekistan's energy policy over the past three years has been the shift from the practice of building facilities with state budget funds to the widespread introduction of the public-private partnership (PPP) model with the participation of international private investors. This approach makes it possible to attract billions of dollars in direct foreign investment into the country's energy sector, commission new production capacities within short timeframes, and bring in modern technologies.

    Today, Uzbekistan has become one of the countries in Central Asia attracting the largest volumes of private investment in the renewable energy sector. This process is inextricably linked to improving the country's investment climate, gradually liberalizing the electricity market, and introducing international tender mechanisms.

    Projects Being Implemented with the Participation of Masdar

    Masdar, a company from the United Arab Emirates, is one of the largest investors in Uzbekistan's "green energy" sector. The company commissioned the country's first industrial-scale solar power plant, and its investment portfolio has expanded further in subsequent years.

    In 2025–2026, financial agreements were finalized with Masdar's participation for the construction of a 300 MW solar photovoltaic station and a 75 MWh Battery Energy Storage System (BESS) in the Guzar district of the Kashkadarya region. The total value of the project exceeds USD 250.5 million, of which more than USD 225 million is covered by foreign investment. The project's full-capacity commercial launch is scheduled for 2027, and it will make it possible to use renewable energy sources even more efficiently in the country's energy system.

    According to Masdar, the company's total investment portfolio in Uzbekistan exceeds USD 2 billion and includes more than 2 GW of renewable energy projects across the country. This figure has made Uzbekistan one of the company's largest partners in Central Asia.

    In December 2025, the first industrial-scale battery-equipped solar power plant in the country's history was commissioned in the Bukhara region — the 250 MW Nur Bukhara Solar plant with a 63 MW / 126 MWh energy storage system. This facility is important not only for generating electricity but also for ensuring the stability of renewable energy within the grid.

    Strategic Partnership with ACWA Power

    ACWA Power, a company from Saudi Arabia, is also one of Uzbekistan's largest strategic partners in the "green energy" sector.

    With the company's participation, solar and wind power plants are being built in the Bukhara, Navoi, and Samarkand regions, as well as in the Republic of Karakalpakstan.

    In 2026, a financing agreement worth USD 226 million was signed with the participation of the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), and Standard Chartered Bank for the 300 MW Bash-II wind power plant under construction in the Bukhara region. These funds account for more than two-thirds of the project's total value.

    At the same time, ACWA Power is implementing a large-scale investment program in the Republic of Karakalpakstan to build wind power plants with a capacity of 1,500 MW and a 300 MWh energy storage system. The project is also supported by the AIIB and will contribute to a significant increase in renewable energy generation in the country's northern regions.

    Expansion of "Green Energy" Across the Regions

    The natural and climatic potential of the regions is taken into account when siting renewable energy facilities. In particular:

    ·                                            Navoi region — as an area with high solar radiation, large photovoltaic stations are being located here;

    ·                                            Bukhara region — is becoming one of the important centers of solar and wind energy;

    ·                                            Kashkadarya region — new-generation battery-equipped photovoltaic stations are being built;

    ·                                            Samarkand region — new private investment projects in solar energy are being implemented;

    ·                                            Republic of Karakalpakstan — is being developed as the country's largest wind energy center.

    This approach contributes to the balanced development of the country's power grid across regions, the diversification of energy generation, and the reduction of losses in electricity transmission.

    New Tasks Set by the President

    In December 2025, at a ceremony to commission new energy facilities held with the participation of President Shavkat Mirziyoyev, the country's future tasks in the "green energy" sector were outlined.

    As emphasized, once the new projects operate at full capacity, the country will be able to generate an additional 15 billion kWh of "green" electricity per year. As a result, in 2026, the volume of "green energy" generation is expected to reach 23 billion kWh, nearly 7 billion cubic meters of natural gas is expected to be saved, and the release of 11 million tons of harmful emissions into the atmosphere is expected to be prevented.

    In January–June 2026, Uzbekistan generated 6 billion kWh of "green" energy. This is 24.3% more than in the same period of the previous year. Solar photovoltaic stations generated 3.8 billion kWh, while wind power stations generated 2.2 billion kWh of energy.

    These indicators demonstrate not only the economic effectiveness of the energy sector reforms but also their important role in fulfilling the country's international commitments under the Paris Climate Agreement.

    Expanding Public Participation and Improving Energy Efficiency: An Important Direction of Affordable and Clean Energy

    Achieving the Affordable and Clean Energy goal is not limited to building large power plants. International experience shows that the active participation of the population, the private sector, and local communities is decisive in developing renewable energy. For this reason, in recent years, the widespread introduction of solar photovoltaic panels, solar water heaters, and energy-saving technologies in households has also become one of the priority directions of state policy in Uzbekistan.

    This approach is consistent with the objectives set within the framework of the UN's Affordable and Clean Energy goal: "ensuring universal access to modern energy services" and "improving energy efficiency."

    The Solar Home Program: From Consumer to Producer

    The Solar Home program, implemented since 2023, has fundamentally changed the role of the population in the country's energy market. Whereas the population was previously only a consumer of electricity, today thousands of households have gained the opportunity to independently generate electricity and sell it to the unified power grid.

    In accordance with the current procedure, the state has introduced a financial incentive mechanism for each kilowatt-hour of surplus electricity generated by solar panels. This system gives the population an economic interest in investing in renewable energy.

    Subsidy Volumes Are Growing Sharply

    According to the State Tax Committee, in 2025, more than 45,000 households across the country were paid 209.2 billion soums in subsidies from the state budget for solar energy supplied to the national power grid. This figure demonstrates that the program is rapidly gaining popularity among the population.

    In the first quarter of 2026, the volume of subsidies paid to the population amounted to more than 73.9 billion soums. This means that, compared with the same period of the previous year, both the number of participants and the volume of payments have increased severalfold.

    These figures show that the economic incentive mechanisms created by the state are delivering practical results for the population. At the same time, generating electricity at the local level is also reducing the load on the centralized power grid.

    Energy Efficiency: The Cheapest Source of Energy

    One of the important indicators of the seventh goal is improving energy efficiency, since energy that is not produced or is saved is in many cases economically cheaper than building a new power plant.

    To this end, in 2025, the activities of specialized institutions coordinating the energy efficiency sector were strengthened, and new subsidy mechanisms were introduced for the population aimed at covering costs associated with energy audits and the installation of solar panels, solar collectors, and heat pumps.

    These measures simultaneously serve several positive outcomes:

    ·                                            reducing electricity consumption;

    ·                                            cutting natural gas use;

    ·                                            lowering households' utility costs;

    ·                                            reducing greenhouse gas emissions into the atmosphere.

    Digitalization and Smart Power Grids

    The widespread introduction of digital technologies in the energy sector also plays an important role in achieving the goals of Affordable and Clean Energy. In recent years, smart electricity meters (Smart Meters) have been widely installed throughout the republic. Through them, consumers have been able to monitor their energy consumption online, make payments automatically, and sell surplus electricity generated by solar panels to the national grid. This has made relations between consumers and energy supply organizations more transparent and efficient.

    Socioeconomic Impact

    The social significance of developing renewable energy is also steadily growing. First, the construction of new energy facilities is creating new jobs for the local population. Second, local businesses are actively participating in the market for solar panels, metal structures, electrical equipment, and installation services.

    Third, improved energy supply is contributing to the stable operation of industry, agriculture, and the service sector. In particular, the introduction of small-capacity autonomous solar systems in remote areas that experience power outages is having a positive impact on the population's quality of life.

    Comparative Analysis with International Experience

    According to the International Energy Agency (IEA), Uzbekistan is becoming one of the most active countries in Central Asia in deploying household and small-capacity solar photovoltaic systems. State subsidies, tax incentives, and the creation of opportunities to sell electricity to the grid are giving impetus to the rapid development of this sector.

    At the same time, a number of issues that need to be addressed remain in the sector. In particular, increasing the share of local manufacturing, promoting energy storage devices (BESS), modernizing power grids, and training highly qualified engineering personnel for the renewable energy sector are important tasks for the next stage.

    International Assessments of Uzbekistan on the Seventh Goal

    According to the UN office in Uzbekistan, important work is being carried out in the country to align the seventh goal with the national development strategy, attract investment in the renewable energy sector, and improve energy efficiency.

    In reports by the International Renewable Energy Agency (IRENA), Uzbekistan has also been noted as one of the countries in Central Asia with high potential for developing renewable energy. The country's high levels of solar radiation and favorable natural conditions for wind energy will make it possible to rapidly develop a "green economy" in the future.

    At the same time, according to IEA analysis, the growth in electricity demand in the coming years will require the country to build new generation capacities, widely introduce energy-saving technologies, and modernize grid infrastructure.

    Prospects Through 2030

    In the "Uzbekistan — 2030" strategy of the Republic of Uzbekistan, expanding renewable energy sources and transitioning to a "green economy" are defined as one of the important priority tasks.

    The country's strategic goals are as follows:

    ·                                            significantly increasing the share of renewable energy sources;

    ·                                            expanding electricity generation volumes;

    ·                                            improving energy efficiency;

    ·                                            reducing greenhouse gas emissions into the atmosphere;

    ·                                            expanding the population's access to sustainable energy services.

    According to experts' assessments, the effective implementation of these tasks will contribute to strengthening the country's energy security, creating new jobs, and improving the investment climate.

    The reforms carried out in Uzbekistan in recent years within the framework of implementing the seventh Sustainable Development Goal — Affordable and Clean Energy — are bringing the country's energy system to a new stage of development. As a result of the widespread introduction of renewable energy sources, the attraction of investment based on international private capital and public-private partnership mechanisms, the construction of solar and wind power plants, and the expansion of public participation in energy generation, a diversified development model is taking shape in the energy sector. On the one hand, this process makes it possible to reduce the financial burden on the state budget and attract modern technologies; on the other hand, it contributes to enhancing the country's energy security and investment attractiveness.

    At the same time, it is also important that the process of implementing the seventh goal is not limited to building large energy facilities. Initiatives such as Solar Home, subsidies encouraging the installation of renewable energy equipment, digital meters, and measures aimed at improving energy efficiency are strengthening public participation in this process and laying the groundwork for a culture of rational energy use. As a result, the population is becoming not only a consumer of energy but also an active participant in the process of generating and saving it.

    However, in order to turn the results being achieved in the sector into long-term and sustainable outcomes, it is necessary — alongside modernizing existing infrastructure — to widely introduce energy storage systems (BESS), smart power grids (Smart Grid), digital management technologies, and innovative energy efficiency solutions. In addition, expanding local manufacturing of renewable energy equipment, encouraging research and development, building national technological capacity, and training highly qualified personnel for the sector will remain priority tasks for the next stage.

Overall, the energy reforms being implemented within the framework of Uzbekistan's policy of transitioning to a "green economy" are creating an important foundation for achieving the key objectives of the seventh goal: reliable, sustainable, and efficient use of energy, increasing the share of renewable energy sources, and improving energy efficiency. Consistently continuing this process, attracting investment and innovation even more widely, ensuring the active participation of the population, and strengthening the national technological base will serve as an important factor in ensuring not only Uzbekistan's energy independence and environmental sustainability but also its long-term economic growth.


Shukhrat Khojimurodov,

Chief Specialist at the

Sustainable Development Center