UZBEKISTAN - The Electric Power Sector.

Uzbekistan is part of, and the main generator for, the integrated Central Asia Power System (CAPS). The country's installed power generation capacity is 11,580 MW. This consists of 42 power plants, including 11 thermal power plants with a total capacity of 9,870 MW and 31 hydroelectric stations with a total capacity of 1,700 MW.

The largest gas-powered plants include Syrdarya (3,000 MW), Tashkent (1,860 MW) and Navoi (1,250 MW). The Talimardjan thermal power station (TPS) with its unique 800 MW turbines was completed recently. The most significant coal-powered facilities are two plants in the vicinity of the Angren coal mine near Tashkent, which includes the Novo-Angren (2,100 MW) plant. The largest hydroelectric plant is Charvak (620 MW).

Uzbekistan produces about 48,000 GWh of electricity per annum. Electricity comes primarily from thermal plants with 77.0% of thermal plants powered by natural gas, 7% by fuel oil, 3.5% by coal, and 12.5% from hydro plants.

The country imports around 1,000 GWh from neighbouring Tajikistan and Kyrghyzstan. Uzbekistan also exports small amounts of electricity in the context of technical exchanges within the CAPS members and to Afghanistan. Uzbekistan takes electricity from the Kyrghyzstan in the context of the Inter-Governmental Irrigation Agreements, which have arrangements for water and energy exchanges. It is importing between 800 GWh in wet years and 1,800 GWh in drought years from Kyrghyzstan and Tajikistan.

The main 110 kV, 220 kV, and 500 kV transmission lines link the power systems of southern Kazakhstan, Kyrghyzstan, Tajikistan, Turkmenistan and Uzbekistan. Uzbekistan can generate about 52% of the total power in the CAPS, Tajikistan 16%, Kyrghyzstan 15%, Turkmenistan 11%, and southern Kazakhstan 6%.

The Central Asian United Dispatch Centre (CA UDC), a state enterprise equally owned by all the five Central Asian states is based in Tashkent. This is responsible for maintaining a balanced and synchronised operation of power transfer and distribution systems for all the five states.

Almost all of the power plants in Uzbekistan are very old, their age averaging more than 30 years, and are in need of substantial rehabilitation. According to estimates reported by the World Bank in June 2003, "up to $1.15 billion investment would be required in the thermal generation plants alone in the next 3 to 5 years".

Given that 90% of the power production is from thermal sources, maintenance requirements are high. However, due to lack of resources, the level of maintenance being carried out is far from adequate. "As a result", the World Bank said, "the reliability of plant and equipment is very poor".

At the same time, the local demand for electricity is increasing, particularly during peak periods both in the summer and winter and the system is "unable to meet this peak demand already". According to data mentioned by the World Bank in June 2003, "there is a peak-period deficit of about 800-900 MW in winter". Further deterioration is very likely, "unless resources are mobilized urgently".

Uzbekistan has raised its production of hydrocarbons significantly - crude oil and condensate - from 55,000 b/d in 1985 to a peak of 191,000 b/d in 1998 and 1999, but this has fallen to average 111,000 b/d now. Uzbekistan imports about 9,000 b/d of crude from the Russian system and some quantities of oil products from neighbouring countries. Uzbek crude oil use has fallen to 120,000 b/d, mainly as a result of an increase in local use of natural gas and lower economic activities than in the previous years.

Production of natural gas increased from 32.3 BCM in 1985 to 55.5 BCM in 2000, and this year it is planned to reach 60 BCM. In 1995, Uzbekistan became a net exporter of natural gas.

In monetary terms, imports of crude oil, which accounted for $485m in 1995, was reduced to zero by 1996-1997. But imports of crude oil and petroleum products have since been resumed, while the country continues to export both crude and surplus oil products.