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In Uzbekistan, tax incentives for energy storage systems and business participation in power grids will be expanded
In Uzbekistan, additional measures are planned to support energy storage projects, expand private business participation in distribution power grids, and develop energy conservation. On October 16, President Shavkat Mirziyoyev announced this at an open dialogue with investors in the fuel and energy sector.
In particular, the president drew attention to discrepancies in the application of existing tax incentives for electricity storage projects.
Under the law, such projects are granted 10-year exemptions from land tax and property tax. However, in practice, questions arise as to which infrastructure facilities exactly qualify for tax exemption.
To eliminate discrepancies in the Tax Code, it is planned to explicitly establish that the benefits apply not only to the areas occupied by batteries or solar panels, but also to the necessary substations, control buildings, and auxiliary infrastructure.
The private sector will be brought in to manage power grids in two more regions
The president also announced plans to expand private companies` participation in distribution power grids.
The approach, which began to be implemented in the Samarkand region, is planned to be extended to the Jizzakh and Tashkent regions.
The goal is to reduce electricity losses and improve the quality of service for consumers.
As a reminder, a project to modernize and manage distribution power grids based on a public-private partnership is already being implemented in the Samarkand region.
By a presidential decree of August 14, 2026, measures were approved to implement the project, under which the private partner is granted the right to manage and operate the region`s distribution networks. Its obligations include modernizing and reconstructing the networks, increasing their capacity, connecting new consumers, and attracting investment.
Investors will be able to earn from saved electricity
Special attention at the meeting was given to attracting private capital to improve energy efficiency. “The cheapest energy is saved energy,” Shavkat Mirziyoyev said.
According to the president, private investment will be attracted to the modernization of social facilities and water management pumping stations using energy-saving technologies.
At the same time, investors are planned to be given the opportunity to earn income from saved electricity and carbon credits.
As a reminder, in June 2026 the Ministry of Water Management signed agreements as part of a project to modernize 19 large pumping stations with the introduction of solar generation and energy storage systems. The total cost of the project is estimated at about $940 million, and its implementation is scheduled for 2027−2030.
Development of power grids and energy storage systems
At the meeting, the president also confirmed plans to build 5,000 km of power lines and 16 large substations by 2030. The capacity of electricity storage systems is expected to be increased to 4.5 GW.
Most of the projects will be implemented in Karakalpakstan, Bukhara, Jizzakh, Samarkand, Namangan, Kashkadarya, and Tashkent regions.
In the future, priority will be given to integrated projects combining the generation, transmission, and storage of electricity. The authorities also intend to cooperate with investors in the construction of pumped-storage power plants designed for long-term energy storage.
In addition, the president said that the project to export “green” electricity to Europe across the Caspian Sea together with Azerbaijan and Kazakhstan is moving into the practical stage. Afghanistan and South Asia were also named as promising markets.
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