The challenge of greater energy efficiency in Uzbekistan

1
The challenge of greater energy efficiency in
Uzbekistan
Martin Raiser Country Manager Uzbekistan The
World Bank
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Uzbekistans Energy Resources A Fossil Fuel
based system
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Energy efficiency in Uzbekistan is among the
lowest in the world
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Commercial and technical losses are a key problem
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Significant upside potential but uncertainty
over resource base and significant investment
needs

• Implications
• increase in domestic gas availability for thermal
  generation of 4.8-5.5 bcm
• investment needs in power sector of US2300 mln
• Additional investment needs in upstream oil gas

6
The promise of greater energy efficiency
If Uzbekistan

• Achieved Russians current level of Electricity
  Intensity by 2015

Savings would amount to 41000 GWh or 1.4
billion annually

• Reduced Commercial and Technical Losses to 10 by
  2015

Savings would amount to 7200 GWh or 250 million
annually
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Challenges for greater energy efficiency

• Price adjustment for demand reduction
• - Good progress, but worry about
  affordability for the most vulnerable (already
  energy 25 of their budget)
• Improved corporate governance for commercial and
  technical loss reduction
• - Metering program is absolutely
  necessary
• - Needs to be integrated with MIS system
  to reduce scope for corruption
• - Increased cash flow crucial to fund
  urgent investments
• Attract private sector for greater efficiency
• Performance based contracts to create incentives
  to save
• Competitive tendering to achieve least cost
  solutions

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The role of the World Bank and other donors

• Support for priority investments WB credit
  planned for
• Metering and billing in electricity and gas
  distribution
• TA for improved MIS in Uzbekenergo and gas
  distribution
• targeted social support to the vulnerable
• development of sound regulatory framework
• Dialogue of broader sector reform issues
• Audit of oil gas reserves
• Advice of attracting private investment into
  energy sector
• Maximizing opportunities for export and regional
  cooperation (see next presentation by R. Sharma)