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December 2013

Uzbekenergo State Joint Stock Company completes the construction of a 500 kV high-voltage transmission line

Source: The Times of Central Asia, 24.12.2013

Diplomatic mission in Uzbekistan held a round table meeting dedicated to presentation of investment potential and industrial opportunities of free industrial economic zone Navoi, special industrial zones Jizzakh and Angren, in the Union of Industrialists and Entrepreneurs of Turkmenistan.

According to the Uzbek Foreign Ministry's news agency Jahon, the participants were informed about achievements of Uzbekistan in reforming and modernizing the economy, steps taken by the State to ensure the growth of wealth and real income, employment, further development of small business and entrepreneurship.

Free industrial economic zone Navoi was created by presidential decree. The term of its operation - 30 years with the possibility of extension. During this period, there will be special customs, currency and tax regimes, simplified procedure for entry, stay and departure, as well as obtaining permits for employment by non-resident citizens of Uzbekistan. Tax incentives will be applied with minimal investment of 3 million euros.

Term of operation of the special industrial zone Angren is 30 years with a possibility of further extension. During the period of operation of Angren, a special tax regime and customs privileges will be applied.

Islam Karimov signed a decree establishing a new special industrial zone Jizzakh on the territory of Jizzakh region on March 18 this year.

The purpose of the special industrial zone is to establish favorable conditions for attracting foreign and domestic investment and thus contribute to creation of modern high-tech industrial production. Jizzakh zone will run 30 years with the possibility of extending the term of operation. During this period, special tax regime and customs privileges will be introduced on its territory.

Transmission line construction

Uzbekenergo State Joint Stock Company has fully completed the construction of a 500 kV high-voltage transmission line 'Talimarjan thermal power plant - Sogdiana substation' worth $166.76 million.

It should be stressed that the network worth about $ 120 million has been constructed this summer. The construction of the network infrastructure was to be completed by the end of August. The transmission line was to be put into commercial operation in September.

"The transmission line with open switchgear at the Talimarjan TPP has been fully constructed," the source said. "The transmission line will be commissioned by late 2013."

The 500 kV high-voltage transmission line will stretch 218 kilometers.

The project was financed through a $110 million loan from the International Bank for Reconstruction and Development (IBRD) and Uzbekenergo's own funds.

The construction of the transmission line is part of the Talimarjan TPP modernization project worth $1.28 billion. Uzbekistan started implementing the project on expanding the Talimarjan TPP worth $1.28 billion in 2011. It planned to build two steam-gas plants of a combined cycle of 450 megawatts each by 2017.

The first energy block of the 800 MW Talimarjan TPP was commissioned in 2004. The station generates 4.6 billion kWh of electricity per year with specific fuel consumption of 314 g / kWh.

With the commissioning of two combined gas cycle plants, power generation at thermal power plants will increase from 4.6 billion kWh to 10.4 billion kWh and the coefficient of performance (COP) rate of the station will increase from the current 38 percent to 58 percent. The fuel consumption will decrease to 263 g / kWh.

The modernization of Talimarjan TPP will improve the energy supply of the republic's southern regions, as well as will increase the country's energy export potential.

The general contractor of the "turnkey" combined gas cycle plant is a consortium of Korean Daewoo International Corp. and Hyundai Engineering & Construction.

The project which is planned to be completed in 2014 is being financed with loans from the Asian Development Bank (ADB) in the amount of $350 million, Japan International Cooperation Agency (JICA) - $300 million, the Fund for Reconstruction and Development of Uzbekistan - $250 million and equity funds of Uzbekenergo.

Currently, the estimated capacity of power plants in Uzbekistan is 12,400 MW. The major part of the country's electricity - 90 percent - is produced by 10 thermal power plants of Uzbekenergo with total estimated capacity of 10,600 MW. Uzbekistan increased electricity generation by 0.2 percent (to 52.534 billion kWh) in 2012 compared to 2011.

Solar power plant construction

The Asian Development Bank will provide a $110 million loan for a 100-megawatt solar power plant in Samarkand, Uzbekistan.

The project will promote large scale solar energy development in the country. The Samarkand Solar Power Project will help Uzbekistan—one of the most energy and carbon intensive countries in the world—tackle power outages, diversify its energy sources, and cut greenhouse gas emissions. Nearly 90% of the country’s power is currently generated from fossil fuel-based plants and require major investments to replace or upgrade. The aging power network also suffers from high losses and the supply-demand gap has become acute in some areas including Samarkand.

The project will provide training and other support to Uzbekenergo, the state joint stock company, to raise its capacity to manage the plant and other solar facilities. Capacity building support will also be given to stakeholders, including the International Solar Energy Institute. The institute will help Uzbekistan achieve its aim of becoming the region’s solar energy knowledge and technology hub.

During the 6th meeting of the Asia Solar Energy Forum in Tashkent, ADB President Takehiko Nakao, said, “This project will be the largest of its kind in Central Asia and one of the largest in the world.

Uzbekistan has a large land mass, plenty of sunshine, and the highly skilled and educated human resources needed to become a major player in solar energy development in this region.” Uzbekistan has high solar energy irradiance and the plant—which will use state-of-the-art photovoltaic technology—will help the Government of Uzbekistan expand the use of renewable energy in its power mix. The government is aiming to generate about 21% of all its energy needs from renewable sources, including solar, by 2031.