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The development of renewable energy: plans and prospects

The development of renewable energy: plans and prospects

By the Resolution of the President of the Republic of UzbekistanPP-3012 dated on 26.05.2017 was approved a Program of Measures for the Further Development of Renewable Energy, Improving Energy Efficiency in the Economy and Social Spheres for 2017-2021.[1]

 

The development of renewable energy production in Uzbekistan (solar, wind and biogas, hydropower of small natural and artificial watercourses) and increasing energy efficiency is a matter of long-standing concern for the society. The fact that Uzbekistan should seriously focus on the development of solar energy was mentioned at the meeting of the Asian Solar Energy Forum in November 2013. As the calculations show, taking into account the high advancing rates of development of the manufacturing industry, the electricity needs of the country in 2030 will be increased by about 2 times against the current year and will amount to over 105 billion kWh. Therefore, one of the main objectives of reforming the economy of the republic is to increase the efficiency of using fuel and energy resources, as well as implementing a set of measures for the active use of renewable energy sources.

Uzbekistan is a country where more than 300 days a year are sunny, besides it has not only natural, but also scientific and technical potential. Already in the 1980s there was built scientific and experimental center of the "Physics-Sun" SPA of the Academy of Sciences of the Republic, which includes a large solar furnace with a 1 MW helium concentrator and makes it possible to reach a temperature of about 3 thousand degrees and also to ensure the production of ultrapure materials, scientific research and thermal testing.

In Uzbekistan in 2012 on the basis of the “Physics-Sun” SPA was established International Solar Energy Institute with the support of ADB. The new institute of solar energy was created with the purpose of promotion of modern technologies of solar energy, it combines functions of scientific and technical and design organization. Furthermore, the institute can also provide consulting services to enterprises in specific projects.

Later, a large-scale work was carried out to increase energy efficiency in the economic and social sectors, as well as to expand the use of renewable energy sources. In particular, in pursuance of the Decree of the President of the Republic of Uzbekistan dated on March 1, 2013 "On measures for further development of alternative energy sources" and the Decree of the President of the Republic of Uzbekistan dated on May 5, 2015 "On the Program of measures to reduce energy intensity, the introduction of energy-saving technologies in the sectors of the economy and social sphere for 2015 - 2019 ":

-has been established the Republican Commission on Energy Efficiency and Development of Renewable Energy Sources; in the structure of the Ministry of Economy of the Republic of Uzbekistan the Energy Efficiency Improvement Unit has been formed as a working body of the Republican Commission;

- being implemented investment projects to introduce modern gas turbine and steam-turbine units in the energy sector;

- has been developed a roadmap for the development of solar energy in Uzbekistan with the support of the Asian Development Bank;

- was built and in December 2014 was put into operation a solar photovoltaic plant with a capacity of 130 kW with connection to a single electric power system that annually can produce 234.3 thousand kilowatts hours of electricity in the Pap district of Namangan region with the assistance of the Ministry of Trade, Industry and Energy of the Republic of Korea on the basis of Korean technology;

- projects are being prepared for the construction of large solar photovoltaic stations in the Surkhandarya, Namangan and Navoi regions;

- in cooperation with the World Bank, the Wind Atlas of the Republic of Uzbekistan was developed, at the final stage there is an investment project for the construction of an experienced wind power plant with a capacity of 750 kW in the Bostanlyk district of the Tashkent region.

Similarly, there were also made investments in the production of components for the assembly of photovoltaic solar panels. In 2012, together with the South Korean company "Neoplant" was put into operation a plant for the production of technical silicon with a capacity of 12 thousand tons per year. On the territory of the special industrial zone “Angren” with the participation of the South Korean company “Shindong Energom” is being constructed a second silicon plant with the capacity of 5 thousand tons per year. In 2014, the production of photovoltaic panels with an initial capacity of 50 MW was started with the participation of the PRC companies on the territory of the free industrial and economic zone "Navoi". In the same year in the special industrial zone "Djizak" the foundation was laid for the construction of a plant for the production of solar thermal collectors with an annual capacity of 50,000 units.

In accordance with the Decree of the President No.PP-2074 dated on November 21, 2013, the implementation of the investment project is ongoing which is for the construction of a solar photovoltaic power plant with a capacity of 100 MW in the Samarkand region.

In April 2016, a mobile solar power plant with a capacity of 1.2 MW (1200 kW) was launched in the Bukhara region, which has no analogues in the CIS. The new station was built within the framework of the Kandym field projects of “Lukoil” as a comprehensive solution for the continuous supply of energy to production facilities and construction infrastructure located far from the central power supply networks. 

In addition, by the Decree of the President of the Republic of Uzbekistan dated on May 5, 2015 "On the Program of measures to reduce energy intensity, the introduction of energy-saving technologies in the economic and social spheres for 2015 - 2019", a number of benefits and incentive standards were approved, in particular:

- organizations that generate energy by using renewable energy production facilities (with a nominal capacity of 0.1 MW or more) are released for a period of 10 years from the date of their commissioning from the payment of property tax in respect of installations for the production of energy from renewable sources and Land tax on the plots occupied by these facilities, as well as from mandatory contributions to the funds and value-added tax in the amount of energy sold to the structural enterprises of SJSC "Uzbekenergo";

- enterprises and organizations specializing in the production of plants for the production of energy from renewable sources (with a share of revenue of at least 60% in the total sales volume) are exempted from all types of taxes, as well as mandatory contributions to funds for 5 years from the date of state registration.

-until January 1, 2020, equipment, raw materials and materials, components, instruments, technological documentation and spare parts not produced in the republic and imported for the implementation of the Program of measures to reduce energy consumption, the introduction of energy-saving technologies, are exempt from customs payments (with the exception of customs duties) In the economic and social sectors for 2015-2019, according to the lists approved by the Cabinet of Ministers.

However, despite all the early steps in the development of the use of alternative energy sources, there are a number of unresolved issues. As noted in the Decree on the approval of the Program of Measures for 2017-2021, the energy intensity of the domestic economy remains high, the level of diversification of the fuel and energy balance due to the involvement of renewable energy sources in industrial production does not meet the world trends. The structure of primary fuel for the production of electrical and thermal energy is dominated by natural gas and other traditional types of hydrocarbon fuels. In the production of electricity and heat, the existing high potential of renewable energy sources (solar, wind and biogas, hydro power of small natural and artificial watercourses) is practically not used, the reserves for the use of energy from renewable energy sources in the regions of the country are not fully involved, according to which it is necessary to develop regional address programs.

There is a need to establish specific target parameters for reducing energy intensity for organizations and enterprises, taking into account the set goals for reducing the energy intensity of the gross domestic product by 2030 as compared to 2016. Taking into account these important tasks, the adoption of this resolution by the President of the Republic of Uzbekistan is aimed at further reducing the energy intensity of the gross domestic product, reducing the cost of production and expanding the use of energy from renewable sources in the sectors of the economy and the social sphere for 2017-2021.

The resolution approved:
-target parameters for the further development of renewable energy;
-list of investment projects for the development of renewable energy;
-a set of measures to develop the use of renewable energy sources and improve energy efficiency in the economic and social sectors;

-target parameters for reducing the energy intensity of production in the basic sectors of the economy;
-the schedule of introduction of energy-efficient heating boilers in budget organizations;
-schedule for the introduction of energy efficient pumps and electric motors in pumping stations of water management organizations of the Ministry of Agriculture and Water Resources of the Republic of Uzbekistan.

Over 314.1 billion soums from the state budget will be allocated to finance these activities in 2017-2021.

Within the framework of the adopted Program of measures for further development of hydropower engineering for the period from 2017 to 2021, the further development of the country's hydropower potential is envisaged on the basis of construction of 42 new and upgrading 32 operating hydroelectric power stations, with expansion of the capacity of clean hydroelectric power of the republic by 1.7 times by 2025.

In addition, the approved program provides measures for private investments attraction needed for stations construction in Uzbekistan, which generate energy using renewable sources. In particular, the Resolution states that:

- micro and small hydro power plants with an instant capacity of up to 0.2 MW and 30 MW, respectively. Consumers of electrical energy that produce it by using renewable energy sources, as well as producers of energy from renewable energy sources and using secondary energy resources, regardless of the organizational and legal form - can be connected to the networks of the unified electric power system of electric energy consumers on the conditions of block stations in accordance with the requirements of the legislation;

- installation of renewable energy sources and using secondary energy resources are prioritized in the dispatch schedule of the operator of a single power system for the purchase of energy in front of generating facilities using fossil fuels;

-owners bear responsibility for costs that are needed for the reconstruction and (or) expansion of existing electrical networks and associated with the connection of equipment (installations) of renewable energy source. And to the moment of connection to a unified electric power system - the producer of energy from renewable energy sources bear cost responsibility;

-calculations for supplied electric energy from renewable sources (except for the organizations of JSC "Uzbekhydroenergo") into a single electric power system are made according to the current tariff for consumers (without Valued-Added Tax), and reduced by the cost of transferring a unit of electricity for a single electric power system, as well as the value of the cost of distribution and sale of a unit of electricity by enterprises of territorial electric networks[2].

-territorial electrical networks enterprises, upon agreement with JSC "Uzbekenergo" and local executive authority administration organs, have the right to conclude contracts for purchase of electric power from consumers that produce it on the basis of renewable energy sources.

It should be noted that equipment, raw materials and materials, components, instruments, spare parts, technological documentation, non-manufactured in the republic, are not exempt from customs payments (except for customs duties) by January 1, 2022, that ate imported for the realization of activities included in the Program of Measures, according to the lists approved by the Cabinet of Ministers of the Republic of Uzbekistan in consultation with the Commission for Critical Analysis of the volume and structure of imports of goods (works, services), deepening the localization of production of import substitution products, formed by the decree of the President of the Republic of Uzbekistan dated on April 6, 2017 No. P-4891.

The Council of Ministers of the Republic of Karakalpakstan, the regional government executive branchs (Region Khokimiyats), as well as the Khokimiyat of Tashkent were instructed to render assistance to the enterprises which initiate projects construction, in particular:

-together with the State Committee for Land Resources, Geodesy and Cartography and State Cadastre and the State Committee for Architecture and Construction, to assist in the provision of land plots and coordination with authorized organizations on the principle of "one window" of projects for the construction of facilities using renewable energy sources, at the request of the initiators of these projects in the manner prescribed by law;

-to provide control over the execution of the terms of passage of licensing procedures for the construction and commissioning of installations using renewable energy sources.

 


[1] http://www.lex.uz/pages/getpage.aspx?lact_id=3221897

[2] Settlements without VAT (Valued-Added Tax) are made during the period of the benefits and preferences for exemption from VAT provided by the second indentation of paragraph 5 of the Decree of the President of the Republic of Uzbekistan of May 5, 2015 No. PP-2343 "About the program of measures to reduce energy intensity, Introduction of energy-saving technologies in the economic and social sectors for 2015 - 2019 ".

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