Electricity Sector Transformation and Resilient Transmission

Summary

The development objectives of the Electricity Sector Transformation and Resilient Transmission Project for Uzbekistan are to (i) strengthen the performance of the national electricity grid of Uzbekistan (NEGU), and (ii) improve the capacity and reliability of the power transmission system to integrate large scale renewable energy sources. The project comprises of four components. The first component, digitalization of the electricity transmission sector will support an upgrade of NEGU’s digital telecommunication network to enable those systems to be fully functional. It consists of following sub-components: (i) strengthening power system control and dispatch; and (ii) modernization of telecommunication networks. The second component, power grid strengthening and renewable energy integration will finance a portion of NEGU’s priority investment program for 2021-2026, including rehabilitation, upgrade, and expansion of existing high-voltage substations and construction of new transmission substations and associated lines. It consists of following sub-components: (i) power grid modernization; and (ii) power grid expansion. The third component, NEGU institutional development and project implementation support will support developing and improving the institutional capacity, financial substantiality, and technical capabilities of NEGU to ensure it can effectively carry out its functions of reliable operation of the transmission system and electricity market in Uzbekistan. It consists of following sub-components: (i) modernization of NEGU business process; (ii) NEGU financial sustainability and preparatory work to access commercial financing; (iii) NEGU institutional capacity building; and (iv) technical supervision consultancy and project implementation support. The fourth component, electricity market development will provide technical assistance for the design and implementation of the electricity sector’s transition plan toward the establishment of a wholesale electricity market, including the preparation of secondary legislation, market rules, institutional capacity building, and design and implementation of systems required for market operation and management.

Expected Outcome

Expected Outputs