Dubovsky: green energy development in Uzbekistan looks good in word

Reducing dependence on natural resources as fuel for power plants has long been on the minds of the authorities and experts in Uzbekistan.

Green energy development has long become a trend in a number of Eurasian countries. Reducing dependence on natural resources as fuel for power plants has long been on the minds of the authorities and experts in Uzbekistan. The Republic has long turned from rhetoric to action. A 100MW photovoltaic plant was put into operation in Samarkand Region. It began generating electricity on May 24. Only, the project was implemented through direct investment of the French company. Tashkent has long made it clear that it intends to make the most of the “natural potential” to promote “clean energy”. How well-founded for Uzbekistan is the development of this energy sector? Is it really possible to reduce electricity costs, which will positively affect the prices of goods produced in the country? A member of the Sfera Club of political scientists Igor Dubovsky commented on the realities and prospects for the CentralAsia.news editorial staff.

Not everything is so rosy in reality

The expert stressed that the climatic factor “plays” in favour of the construction of solar power plants.

“Uzbekistan is located in a climate zone with very low cloudiness and little precipitation, where the duration of daylight does not vary much from one season to another. The average temperature does not fall below +10C throughout the year. It is quite logical to build solar power plants in this climate zone,” the interlocutor emphasised.

However, the economic factor needs to be taken into account. To say for sure that “almost free energy” will be cheap is naive. Igor Dubovsky said energy projects in the Republic are implemented through investments, private investments at that. As is known, cost recovery is a key issue for an investor.

“If we consider the project under discussion, then the average cost of 1 MW generated by solar panels or wind turbines is about a million dollars. A 100 MW plant will cost 100 million. The price of electricity in Uzbekistan needs to be counted to find out how many years or decades the power plant will pay off. It is about 1.7 roubles per kWh, which is about 4 times cheaper than in Russia,” Dubovsky noted.

The expert noted that foreign companies invest in this kind of projects. It is therefore important for them to make and withdraw a profit from Uzbekistan as quickly as possible.

“Given the current electricity tariffs in Uzbekistan, such a power plant will pay off in 15 to 20 years, or possibly more. Over time, the equipment will need to be replaced and repaired. This will bring additional costs,” the political scientist noted.

Igor Dubovsky urged not to forget about the experience of the EU states where green energy development cannot yet do without state subsidies.

Is it worth it?

The expert’s arguments make us wonder if it makes sense for Tashkent to focus greater attention on the clean energy sector for the time being. Wouldn’t it be better to build gas power plants for the time being, using fuel deposits in the Republic? The international, political factor turned out to play an important role in this context, Igor Dubovsky believes.

“There is a “green” international agenda, where every leader of state wants to be noted as a person who seeks to contribute to climate protection. As well as the influence and pressure of the countries on which there is a certain political and economic dependence. After all, the power plants are built entirely with the money of external investors,” the political scientist explained.

Certainly, everything in Uzbekistan is moving forward in terms of a favourable climate.

Along with electricity prices, ordinary citizens are concerned about job creation. The new huge energy facility should automatically mean new vacancies. The expert states that jobs will undoubtedly be created. Another thing is how many jobs there will be created and who will get them.

“Uzbekistan is becoming dependent on another external debt that needs to be paid for quite a long time. However, new jobs are created at the very final stage that requires only an “overseer”. I believe that the specialists of the equipment manufacturer will fill key management positions at the power plant – 25 jobs against $100 million in investment – this is remarkably few, in my opinion,” the expert says.

Dubovsky once again reminded that the state will not see dividends from the Samarkand power plant, because they will go “past the budget”.

Commenting on the ecological issues, the political scientist reminded about the “carbon footprint”. The production and disposal of solar power generation equipment create a “carbon footprint” that exceeds emissions from gas-fired power plants per unit of electricity generated.

Summing up, the expert emphasised that given the level of technology development and the lack of public funds in Uzbekistan to build this kind of power plants, it would seem inappropriate to talk about cheap energy and massive job creation.

01 06 2022, 11:48
Photo source: ria.ru

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