ADB to help modernize Uzbekistan’s power transmission grid with $125 million loan

The Digitize to Decarbonize – Power Transmission Grid Enhancement Project will rehabilitate 12 transmission lines in seven regions — Bukhara, Fergana, Kashkadarya, Samarkand, Surkhandarya, Navoi, and Tashkent — of a total length of about 359 kilometers. The project will also finance the reconstruction and modernization of four 220-kilovolt substations in Faizabad, Obi-Khaet, Zafar, and Zarafshan, to increase their capacity to meet current and projected energy demand.

“This project will help Uzbekistan meet the growing demand for reliable and affordable electricity while supporting the country’s transition to a green and low-carbon economy,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “Modernizing the national grid will complement public and private sector efforts to scale up renewable energy generation and help ensure better energy access for all.”

The project will digitalize the transmission grid by replacing old technology with modern high-voltage lines and substations ready to be connected to a supervisory control and data acquisition (SCADA) system. This will enable the operation dispatch center to gain remote control and acquire real-time and historical data. The National Electric Grid of Uzbekistan will be able to better manage the power supply and increase renewable energy generation capacity in the grid.

“Moving away from a manual system, which is unable to effectively manage the intermittency of renewable energy supply, is vital for the energy transition through increased renewable energy generation,” said ADB Energy Specialist Nana Gurgenidze. “Digitalizing the grid and incorporating climate-resilient technology will also help decrease the number of unscheduled outages and increase the grid’s efficiency.”

The project will also strengthen the National Grid of Uzbekistan’s corporate governance and project management capacity. It will support the creation of strategic plans and gender-responsive policies, as well as capacity building in safeguards and financial management. 

Uzbekistan joined ADB in 1995. Since then, the bank has committed loans, grants, and technical assistance amounting to $10.8 billion to the country.