Uzbekistan to boost small hydropower with $150 million World Bank project

Uzbekistan will significantly expand its small hydropower capacity through a new $150 million World Bank project, aiming to enhance electricity access and boost renewable energy production nationwide.

The project, approved by the World Bank, will be implemented by Uzbekistan’s Ministry of Energy between 2025 and 2030. It focuses on developing small hydropower plants (SHPPs) across the country, with strong involvement from local developers and banks. The goal is to provide clean, reliable electricity to households and businesses -especially in remote or underserved regions - while also supporting the country’s transition to a low-carbon energy system.

By 2026, the government plans to establish up to 3,000 SHPPs, bringing total installed capacity to 160 megawatts. The new World Bank-funded project will directly support this goal by financing investments in SHPPs with a combined capacity of up to 150 megawatts, expected to generate over 520 gigawatt-hours of green energy each year.

In addition to boosting power supply, the project aims to reduce greenhouse gas emissions by up to 430,000 tons of CO₂ annually. Around 270 potential SHPP sites have already been identified, mostly along existing irrigation canals. The majority of these locations are suitable for plants ranging from 100 to 1,000 kilowatts in capacity - ideal for small-scale, decentralized electricity generation.

Electricity generated under the project will be purchased by Regional Electric Power Networks and fed into the national grid. This will help diversify Uzbekistan’s energy mix and improve energy security in rural areas.

By facilitating private sector participation and access to finance, the project also strengthens Uzbekistan’s green investment ecosystem and contributes to job creation in clean energy development. It reflects the government’s broader strategy to meet growing energy demand sustainably and fulfill its international climate commitments.

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