Uzbekistan’s Nuclear Energy Future: A Gateway to Sustainable Development and Economic Growth
Uzbekistan, with a population exceeding 33 million people, holds the distinction of having Central Asia's largest population. Its economy has exhibited consistent growth over the years. According to the International Energy Agency (IEA), Uzbekistan's electricity generation reached 63.5 terawatt hours (TWh) in 2019, driven by an expansion in generation capacity. The nation has experienced a steady increase in electricity production, recording a 27% surge since 2008, predominantly fueled by natural gas. In 2019, natural gas contributed 85% to the overall electricity generation, followed by hydro (10.2%) and coal (3.7%). Anticipating the expansion of both the economy and population, electricity demand is projected to escalate by 50% by 2030. To keep up with the energy demand, the development of nuclear power plants emerges as a viable option for Uzbekistan to secure a reliable source of baseload electricity, complementing its existing renewable energy sources.
Uzbekistan's Nuclear Energy Development
Uzbekistan is poised to embark on the construction of its inaugural nuclear power plant, a strategic move aimed at meeting the escalating demand for electricity while simultaneously curbing CO2 emissions. In May 2020, the Ministry of Energy unveiled a 'Concept Note,' delineating its vision for electricity generation up to 2030. According to the document, projections indicate that by 2030, 15% of the nation's electricity will be sourced from nuclear energy, with solar and wind contributing 8% and 7%, respectively.
The momentum behind Uzbekistan's nuclear ambitions grew with the establishment of The State Committee of the Republic of Uzbekistan for Atomic Energy in 2018, which is represented by the Agency for the Development of Nuclear Energy (Uzatom Agency). This move signaled the government's commitment to exploring nuclear power as a viable option. The Uzatom Agency is tasked with developing and implementing a unified government policy and strategic directions in the field of nuclear energy.
The agency's responsibilities encompass preparing proposals on priority areas of government policy related to the peaceful use of nuclear energy, as well as developing and implementing government programs for the Republic of Uzbekistan's nuclear energy sector. Furthermore, it plays a crucial role in ensuring the development and safe operation of both research and nuclear power reactors. Additionally, the Uzatom Agency has established a Directorate for NPP construction, serving as the exclusive contractor for the facility's construction. This directorate will later transition into an operating organization for the country's nuclear power facilities. In 2021, Uzbekistan achieved a significant milestone by completing INIR Phase 2, marking progress in the implementation of its nuclear power program.
To support its nuclear sector development, the Uzbekistan government is offering a range of incentives to attract foreign investment. Key incentives include the modernization of legislation through the adoption of the Law on Investments and Investment Activities, along with other regulatory measures aimed at streamlining investor-state interactions. These efforts have reduced the tax burden, liberalized access to certain commodities, and initiated the privatization of major state-owned enterprises.
Specific incentives entail reduced taxes on subsoil use and exemptions from customs duties on equipment, materials, technical resources, and special equipment not manufactured domestically. Furthermore, the establishment of new free economic zones with tax benefits is enticing foreign investment to Uzbekistan by presenting the country as a destination with emerging market opportunities.
The initiation of a privatization program has further facilitated diversification and increased foreign direct investment (FDI) across various sectors. This includes the provision of tax breaks, customs exemptions, and simplified procedures for obtaining licenses and permits.
In 2018, Uzbekistan signed an inter-governmental agreement with the Russian Federation for the development of Uzbekistan’s first nuclear power plant (NPP). The facility will comprise two units with a combined capacity of 2400 MW(e). The first unit is scheduled to be connected to the grid in 2028, followed by the second unit in 2030. Uzbekistan initiated the process of selecting a site for its inaugural nuclear power plant. In March 2018, Uzbekistan shortlisted 10 sites across the country for the construction of the nuclear power plant, with a subsequent focus on locations in the Jizzakh region by October of the same year.
Challenges and opportunities
Looking ahead, Uzbekistan's nuclear energy program holds significant promise as a catalyst for sustainable development and energy transition. The deployment of nuclear power plants promises to diversify the energy mix, reduce carbon emissions, and enhance energy security, aligning with the country's long-term economic and environmental objectives. Additionally, enhancing energy self-sufficiency through nuclear power could open avenues for exporting surplus electricity to neighboring countries. As Uzbekistan's power infrastructure integrates into the Central Asia Power Grid alongside Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan, this interconnected network features 220 kilovolts (kV) and 500 kV transmission lines linking Uzbekistan with the aforementioned countries, as well as 220 kV transmission lines connecting with Afghanistan. The net volume of electricity trade remained relatively stable between 2010 and 2017; however, the total electricity trade experienced a downward trajectory primarily due to certain countries' withdrawal from the Central Asia Power Grid, resulting in a decrease to 5.4 TWh in both directions. In August 2020, the Uzbekistan government forged an agreement with Afghanistan for a decade-long electricity export initiative, which includes the construction of a 500 kV interconnection line. This initiative aims to bolster Uzbekistan's net electricity export capacity.
Despite the momentum behind Uzbekistan's nuclear energy program, several challenges and considerations merit attention. Foremost among these is the need to address public perceptions and concerns regarding nuclear safety, environmental impact, and long-term waste management. Public awareness campaigns, stakeholder engagement, and transparent communication are essential to fostering trust and acceptance of nuclear power among the population.
Additionally, Uzbekistan faces technical and institutional challenges associated with the development and operation of nuclear facilities. These include the availability of skilled manpower, regulatory capacity, and infrastructure readiness. Close collaboration with experienced nuclear suppliers and ongoing investment in human capital are imperative to overcoming these hurdles and ensuring the successful implementation of the nuclear energy program.
Nuclear Powering Sustainable Growth
Uzbekistan's economy has been experiencing steady growth, accompanied by an increasing demand for electricity. To sustain this growth trajectory, the country needs to ensure a stable and reliable energy supply. Nuclear energy offers a consistent source of electricity that can meet the country's growing energy needs over the long term. Currently, Uzbekistan heavily relies on natural gas and coal for its energy needs. Dependence on these fossil fuels poses several challenges, including price volatility and environmental pollution. Introducing nuclear energy would diversify the energy mix, reducing the country's vulnerability to fluctuations in fossil fuel prices and enhancing energy security.
Nuclear energy presents a cleaner alternative to fossil fuels, as it does not produce greenhouse gas emissions during electricity generation. With growing concerns about climate change and air pollution, transitioning to nuclear power can help Uzbekistan mitigate its environmental impact and contribute to global efforts to combat climate change. The development of a nuclear energy sector in Uzbekistan would create employment opportunities and stimulate economic growth. From construction and operation to research and development, the nuclear industry requires a skilled workforce across various disciplines. Investing in education and training programs focused on nuclear technology would enable Uzbekistan to build a domestic talent pool capable of supporting the nuclear energy sector.
In summary, nuclear energy offers the potential for long-term sustainability by providing a reliable source of baseload power that complements intermittent renewable energy sources like wind and solar. By integrating nuclear power into its energy portfolio, Uzbekistan can achieve a more balanced and resilient energy system capable of meeting the needs of future generations. Additionally, increasing energy self-sufficiency through nuclear power could create opportunities for exporting excess electricity to neighboring countries.
