"Uzbekhydroenergo": investments, localization, and new technologies are changing the energy industry

"JSC Uzbekhydroenergo": investments, localization, and new technologies transform the energy sector

Uzbekistan's hydropower sector continues to increase generating capacity, expand investment projects, and introduce modern technologies.

In recent years, the number of hydroelectric power plants in the country has grown from 36 to 106, with total installed capacity reaching 2.5 GW. Based on the results of the nine months of 2026, JSC Uzbekhydroenergo generated 6.64 billion kWh of electricity, fulfilling the nine-month plan by 120% for the first time.

These results were the key topic of the press conference "JSC Uzbekhydroenergo: ongoing sector reforms, achieved results, and prospects for hydropower development," held on November 3 at the Media Content Preparation Center under the Administration of the President of Uzbekistan. Representatives of the Company's management spoke about operational results, implementation of investment projects, modernization of existing facilities, and plans for further development of the sector.

Record figures in electricity production

Hydropower development remains one of the priority areas of Uzbekistan's state policy in the field of energy security and the transition to cleaner energy sources.

In recent years, the sector has undergone a large-scale renovation. The number of hydroelectric power plants increased from 36 to 106, while installed capacity reached 2.5 GW. The construction of new HPPs, the development of the hydropower potential of rivers and canals, as well as the development of small and micro energy sectors played a significant role in this.

According to data presented at the press conference, JSC Uzbekhydroenergo produced 6,642.7 million kWh of electricity in January–September 2026. The plan was fulfilled by 120%, and the growth rate compared to the same period last year reached 124%.

The value of the electricity produced reached 3 trillion soums. One of the most notable results was that daily electricity generation exceeded 50 million kWh for the first time in the Company's history.

Such dynamics indicate the expansion of the capabilities of existing hydropower facilities and an increase in the efficiency of production process organization.

Investments and construction of new energy facilities

Attracting investments remains an important condition for the further development of the sector. Over the nine months of 2026, JSC Uzbekhydroenergo utilized $151.9 million in investments, which represents 110% of the established plan.

Of this amount, $48.7 million came from foreign direct investments, for which the plan was fulfilled by 141%. Another $103.2 million was funded through the Company's own resources.

Investment resources are used to construct new energy facilities, build up production capacities, and modernize existing infrastructure.

During the year, nine energy projects with a total capacity of 74.3 MW were commissioned. Among them are the HPPs "Kugay-1", "Kugay-2", and "Beshkurgan" on the Great Andijan Canal, the "YFK-3" HPP on the South Fergana Canal, as well as the "Rabat", "Chappasuy", and "Tamshush" HPPs on the Oksuv River.

In addition, the 20 MW Charvak wind power plant, constructed using non-repayable grant funds, and the "Zarchob-3A" micro HPP were put into operation.

The implementation of these projects made it possible to create new generating capacities and about 120 jobs. Thus, the development of energy infrastructure contributes not only to the growth of electricity production, but also to the expansion of regional economic opportunities.

Localization and development of domestic production

A separate line of the Company's work is related to the development of industrial production, expanding localization, and reducing dependence on imported equipment.

In the nine months of 2026, enterprises within the Uzbekhydroenergo system produced industrial goods worth 576.3 billion soums. The plan was fulfilled by 108%, with a growth rate of 113%.

Under the localization program across eight projects, products worth 177.2 billion soums were manufactured, corresponding to 125% of the planned indicator.

Also, through the optimization of production and administrative expenses, costs were reduced by 156.4 billion soums.

A special place in this direction is occupied by the UzHydroPower enterprise, which is part of the Company's structure. Hydro units with a capacity of up to 40 MW and spare parts for hydropower equipment are manufactured here under the national brand Made in Uzbekistan.

The enterprise operates in a three-shift mode, ensuring the production of equipment and components for the construction of new and the modernization of existing hydroelectric power plants.

The development of domestic production is of strategic importance for building the country's own technological base in hydropower, increasing the level of localization, and strengthening national industrial potential.

Digitalization and implementation of artificial intelligence

Modern hydropower relies increasingly on digital solutions, automation, and efficient water resource management.

JSC Uzbekhydroenergo is working to implement information and communication technologies, develop digital control systems, and leverage artificial intelligence capabilities.

In particular, tools are being developed and refined for forecasting water flows at hydropower facilities, automating production processes, and making management decisions based on real-time data.

The application of such technologies allows for more precise planning of electricity generation, a more rational allocation of water resources, and prompt responses to changes in operating conditions.

Ensuring cybersecurity and protecting the information systems of the energy infrastructure also remain an important area of focus.

International recognition and investment attractiveness

The results of the Company's operations are also reflected in the assessments of international rating agencies.

In particular, Fitch Ratings affirmed the long-term credit rating of JSC Uzbekhydroenergo at BB with a Stable Outlook, and assessed its standalone credit profile at b+.

In addition, Sustainable Fitch maintained the ESG Entity Rating at Level 2, while the overall score increased from 79 to 80 points.

These assessments reflect the Company's financial stability, its approach to environmental and social responsibility, and the quality of its corporate governance.

International ratings are of particular importance for the hydropower sector, as they help strengthen investor confidence and expand opportunities to secure long-term financing.

International cooperation and staff training

Further development of the sector involves expanding international technological cooperation. Specialized companies and experts from Turkey, Iran, and the Russian Federation are involved in designing prospective hydropower facilities.

At the same time, partnerships are being strengthened with companies from China and the Republic of Korea in mastering modern hydro units, introducing innovative equipment, and automating production processes.

Interaction with international financial institutions is also expanding. Financial structures from the USA, UAE, Turkey, and China are showing interest in direct project financing for the Company.

Along with technological modernization, great attention is paid to training qualified specialists.

Scientific and practical ties with higher education institutions are developing, and elements of dual education are being introduced, allowing students to combine theoretical training with practical work at production facilities.

This approach aims to build a talent pool capable of working with modern hydropower technologies and ensuring the operation of new energy facilities.

New tasks for the sector

As noted at the press conference, JSC Uzbekhydroenergo continues work to fulfill the tasks defined by Resolutions of the President of the Republic of Uzbekistan No. PP-163 and No. PP-298, which provide for the further development of hydropower, construction of new facilities, and modernization of existing HPPs.

The results achieved in the nine months of 2026 demonstrate that hydropower is becoming a vital component of the national energy system. Meanwhile, the sector's further development will depend not only on commissioning new capacities, but also on the efficiency of water resource management, technological modernization, financial stability, and governance quality.

Amid growing demand for electricity, hydropower gains special importance as a renewable energy source capable of complementing other generating capacities and enhancing grid stability.

At the conclusion of the press conference, representatives of JSC Uzbekhydroenergo management answered questions from journalists and bloggers, explaining the progress of current projects, key production indicators, and prospective development directions of the national hydropower sector.