Uzbekistan’s Grid Upgrade to Cut Power Losses and Connect 3.3 GW of Renewables

Uzbekistan plans to produce 25 gigawatts of renewable energy by 2030, a goal that requires a stronger distribution network.

The World Bank has approved a $100 million loan to help Uzbekistan modernize its electricity distribution system, with the program expected to enable an estimated 11,700 more and better jobs within five years of the upgraded facilities entering service. The investment will improve the reliability and efficiency of electricity delivery to households and businesses. It will also help the grid carry more renewable power.

Uzbekistan plans to produce 25 gigawatts of renewable energy by 2030, a goal that requires a stronger distribution network. Much of the existing infrastructure was built decades ago, and overloaded substations can contribute to power losses and service disruptions for households, businesses, schools and health clinics. Growing electricity demand adds urgency to the planned upgrades.

By 2031, the program is expected to enable at least 3.3 gigawatts of renewable energy and cut electricity losses at renovated substations by 20,000 megawatt-hours each year. It is also expected to avoid nearly 23,000 tons of carbon dioxide equivalent emissions annually. The Modernization of Electricity Distribution Systems Program will modernize and digitalize 60 key substations nationwide.

Upgrading infrastructure and operations

The program will be implemented by the National Electric Grid of Uzbekistan, or NEGU, with investments focused on substations that are important to the country's electricity supply. Modern equipment and digital systems are intended to reduce losses and improve service reliability as demand grows. The upgrades will also make it easier for the distribution network to absorb and deliver renewable electricity.

The work includes strengthening NEGU's capacity and internal operations alongside physical improvements to the grid. Support will cover financial systems, cybersecurity, environmental and social standards, and gender equality in employment at the company. These improvements are intended to help NEGU manage the modernized infrastructure and provide dependable service over time.

Joint financing from the World Bank and ADB

The World Bank and Asian Development Bank are financing the program through their Full Mutual Reliance Framework, which uses a shared approach to prepare and oversee projects. That arrangement is designed to reduce transaction costs and avoid duplicated procedures for the government. ADB approved its $200 million loan to Uzbekistan on September 30, 2026.

With the World Bank's $100 million loan and a $71 million contribution from Uzbekistan's government, total program financing reaches $371 million. World Bank Division Director for Central Asia Najy Benhassine said reliable electricity supports jobs, public services and economic growth. He described a reliable, digitalized grid ready for renewable energy as important to the country's economic future and to the families and businesses that depend on it.