The Future Development of Micro Hydropower Plants in Uzbekistan

The Future Development of Micro Hydropower Plants in Uzbekistan
Uzbekistan is at a pivotal moment in its energy transition. With abundant water resources, a rapidly growing economy, and ambitious renewable energy targets, the country is turning to micro and small hydropower as a strategic solution to improve energy access, reduce natural gas dependence, and build a sustainable energy future. This article explores the current state, future potential, and key drivers of micro hydropower development in Uzbekistan.
Uzbekistan possesses an extensive network of water resources that forms the backbone of its hydropower potential. The country is home to more than 150,000 kilometers of rivers, canals, and streams, which are critical not only for water supply and irrigation but also for energy production and environmental sustainability. These waterways, many of which have been developed for agricultural irrigation over decades, represent a largely untapped opportunity for distributed energy generation.
Hydropower currently accounts for approximately 10–12 percent of Uzbekistan’s electricity generation, while the bulk of the country’s energy supply remains reliant on natural gas and coal. As of 2025, Uzbekistan’s total electricity generation reached 85.5 billion kilowatt‑hours, up from 59 billion in 2016, and the country’s electricity demand is expected to double by 2030, exceeding 120 billion kilowatt‑hours annually. Despite increased generation, approximately 10 percent of electricity demand remains unmet, leading to frequent outages—particularly in rural and underserved areas—due to outdated transmission and distribution infrastructure.
Strategic Vision and Policy Framework
The government of Uzbekistan has made green energy expansion a national priority. In 2025, President Shavkat Mirziyoyev declared the year as the “Year of Environmental Protection and Green Economy,” and the country has developed a long‑term Low‑Carbon Development Strategy and a National Green Finance Program. The strategic goal is to ensure environmental stability and transition to a resource‑efficient green economic development model.
Under this framework, Uzbekistan has set bold renewable energy targets: to grow the share of renewable energy from 23 percent in 2025 to 54 percent by 2030, and to increase total electricity capacity to 51.6 gigawatts by 2030 and 59 gigawatts by 2035. The government plans to commission more than 17,000 megawatts of renewable energy capacity by 2030 to meet growing electricity demand.
Within this broader green energy push, hydropower occupies a central position. The government has identified an ambitious target of 6 gigawatts of hydropower capacity by 2028, up from just over 2 gigawatts currently. Plans for 73 hydropower projects worth $5.8 billion over the period 2026–2032 have been reviewed, with an expected addition of 3.6 gigawatts of capacity.
Micro and Small Hydropower: A Pillar of Rural Electrification
Among the most notable components of Uzbekistan’s hydropower strategy is the rapid deployment of micro and small hydropower plants (micro‑HPPs and small HPPs). These projects are particularly well‑suited to the country’s geography and energy needs. Small hydropower plants (SHPPs) with capacities ranging from 100 kilowatts to 5 megawatts can be placed on existing irrigation canals, making them ideal for distributed electricity generation in areas with limited access to reliable power. Such plants are considered low‑cost, require little maintenance, and can be built relatively quickly.
The government has set a goal to construct nearly 3,000 micro and small HPPs by 2026, with a total installed capacity of up to 164 megawatts, enough to provide electricity to an additional 280,000 people. These micro‑HPPs are expected to produce approximately 500 million kilowatt‑hours of clean electricity annually, saving up to 151 million cubic meters of natural gas each year and reducing carbon dioxide emissions by 251,000 tons. Entrepreneurs will implement these projects based on standard designs, with land allocated through online auctions for 20‑year leases, extendable upon expiration.
The highest number of micro‑HPPs will be built in Andijan (763 plants), Surkhandarya (300 plants) and Kashkadarya (269 plants) regions. Additionally, a separate project aims to construct 416 micro‑HPPs using kinetic turbines over the next two years, with a total capacity of 12 megawatts. These innovative installations will efficiently harness the energy of flowing water in irrigation channels and canals.
Recent Milestones and Ongoing Projects
Uzbekistan has already made substantial progress in implementing its hydropower agenda. In 2025, several key projects were completed. The Gissarak small HPP in Shakhrisabz district, with a capacity of 3.5 megawatts, was commissioned at a cost of $1.5 million, utilizing entirely local resources. It is expected to generate 17.5 million kilowatt‑hours annually and save up to 5 million cubic meters of natural gas each year, enough to supply approximately 7,300 households.
The Zarchob‑3 HPP on the Tupalang River in Surkhandarya region, with a capacity of 16 megawatts, was connected to the national grid in 2025 and is expected to generate up to 70 million kilowatt‑hours annually, serving approximately 23,200 households. It follows earlier developments on the Tupalang River: Zarchob‑1 (37 megawatts) began operation in 2020, and Zarchob‑2 (38 megawatts) was commissioned in 2021, together providing electricity for roughly 48,000 households.
Looking ahead, the government plans to commission 13 new hydropower plants by the end of 2026, with a combined capacity of 114 megawatts and expected annual generation of 537 million kilowatt‑hours, creating 254 jobs. Among major projects, the Upper Pskem HPP in Bostanlyk district, valued at $365 million, will have a capacity of 160 megawatts and an annual output of 484 million kilowatt‑hours, supplying around 161,000 households. Local content for this project is projected at 82 percent. In Sokh district of Fergana region, a 15‑megawatt plant will generate 50 million kilowatt‑hours annually, covering about 71 percent of local demand.
An even larger initiative is planned for the Tupalang river system: the construction of 42 small hydropower plants on rivers feeding the Topalang reservoir would unlock 541 megawatts of capacity and an annual output of nearly 1.9 billion kilowatt‑hours.
International Financing and Private Sector Participation
International financial institutions are playing a crucial role in supporting Uzbekistan’s micro hydropower development. In June 2025, the World Bank approved a $150 million concessional loan to support the implementation of a new project aimed at developing the small hydropower sector and strengthening electricity supply across the country. The project, to be implemented by the Ministry of Energy between 2025 and 2030, will emphasize active participation from the private sector, including local small hydropower developers and banks.
By 2030, the World Bank‑funded project aims to finance investments in SHPPs with total installed capacity of up to 150 megawatts, expected to generate over 520 gigawatt‑hours of green energy annually and reduce greenhouse gas emissions by up to 430,000 tons of CO₂ per year. The project is also expected to mobilize around $38 million in commercial financing to expand hydropower infrastructure nationwide.
To date, around 270 suitable sites for SHPP construction have been preliminarily identified along existing irrigation canals. The majority of these sites (93 percent) have capacities between 100 kilowatts and 1,000 kilowatts. Electricity generated by project‑financed SHPPs will be purchased by JSC Regional Electric Power Networks, providing a reliable renewable energy source that diversifies the power mix and improves energy supply to households and businesses in underserved regions and rural areas.
Beyond the World Bank, Uzbekistan has attracted significant international investment in its energy sector. Over the past five years, the country has attracted almost
Thecountryhasimplementedsixmajorenergyprojectsworthatotalof1.5 billion in partnership with the UAE’s Masdar in recent years, and the overall project portfolio between Uzbekistan and the UAE has reached $20 billion. Masdar has also signed an agreement with JSC Uzbekhydroenergo to assess the feasibility of several pumped storage hydro projects in the country—the first pumped‑storage plants with a total capacity of 1.4 gigawatts are planned, which will help address the intermittent supply challenges of solar and wind energy.
Uzbekistan is also deepening its cooperation with China. In the Namangan region, a 2‑megawatt micro hydropower plant is being constructed jointly with the Chinese company Zenith Hydro Electrics, with a total project cost of $5 million, planned for completion in 2025–2026. Another Chinese company, Xinjiang Qianyuan Kunyu Construction Engineering Co., has signed an agreement to build nine small hydropower plants on the Karadarya River in the Andijan region.
Economic and Environmental Benefits
Micro hydropower offers compelling economic and environmental advantages for Uzbekistan. In terms of cost, SHPPs are cost‑effective and require little maintenance, with the cost of electricity from renewable sources averaging around 3 cents per kilowatt‑hour, compared to 5–6 cents at thermal power plants. The Ugam‑1 HPP, a small plant with a capacity of 1.48 megawatts generating 11.8 million kilowatt‑hours annually, demonstrates the economic viability of these projects—each of the two small HPPs on the Ugam River generates an annual income of 200 billion soums.
Environmentally, micro hydropower contributes directly to Uzbekistan’s climate goals. By 2030, the country intends to reduce greenhouse emissions by 35 percent. Each micro‑HPP displaces natural gas that would otherwise be burned for electricity generation. For instance, the Gissarak small HPP alone saves up to 5 million cubic meters of natural gas annually. The nearly 3,000 planned micro‑HPPs are expected to reduce annual natural gas consumption by 151 million cubic meters, cutting carbon dioxide emissions by 251,000 tons. The World Bank‑funded projects are projected to cut CO₂ emissions by up to 430,000 tons per year.
From a social perspective, micro hydropower brings reliable electricity to rural communities that have long suffered from power shortages. In addition to providing energy access, these projects create jobs: the 13 hydropower plants planned for 2026 alone are expected to create 254 jobs, while the 2‑megawatt micro‑HPP in Namangan will create 15 permanent jobs. The project also has the potential to stimulate job creation and production in relevant industries and small and medium enterprises, boost local economic activity and contribute to broader regional development.
Challenges and Environmental Considerations
Despite the clear benefits, the rapid expansion of micro hydropower in Uzbekistan is not without challenges. Environmentalists have raised concerns about the potential environmental and social risks associated with mini‑hydropower plant construction, including impacts on river ecosystems, fish migration, water flow patterns, and local communities. Uzbekistan has a history of addressing these challenges: the government has taken strides in coordinating the distribution of water for agricultural and energy purposes, and monitoring water usage. More broadly, the country is working to introduce water‑saving technologies in agriculture to 100 percent and has announced plans to increase the number of planned reservoirs from four to 12.
To address these concerns, the government is implementing advanced digital monitoring and artificial intelligence systems in the sector, with 3,500 monitoring devices and sensors already installed at water facilities to track water volume, pressure, weather conditions, and structural integrity in real time.
The Road Ahead: Future Prospects
The future of micro hydropower in Uzbekistan appears exceptionally promising, driven by several converging factors. First, the government’s strong political commitment, as evidenced by presidential decrees, national strategies, and ambitious targets, provides a stable policy environment. Second, substantial international financing from the World Bank and other partners ensures that capital constraints will not impede development. Third, the involvement of private sector developers—both domestic and international—brings expertise, efficiency, and innovation to the sector. Fourth, the existence of over 270 pre‑identified sites along existing irrigation canals creates a clear pipeline of bankable projects.
5.8billionover2026–2032withanexpectedadditionof3.6gigawattsofcapacity[reference:60].By2028,theTashkentregionaloneplanstoimplement23additionalhydropowerprojectswithatotalcapacityofapproximately2,400megawattsandaninvestmentof4.8 billion. The country’s total hydropower capacity is targeted to reach 6 gigawatts by 2028.
Perhaps most significantly, Uzbekistan is positioning micro hydropower as part of a broader integrated energy system. The planned pumped‑storage hydro plants with 1.4 gigawatts of capacity will help stabilize the grid and store energy from the country’s rapidly expanding solar and wind capacity. The government has also outlined plans to modernize low‑voltage power grids, build 7,000 kilometers of backbone networks, and implement digital control systems to ensure energy balance across regions.

Uzbekistan’s micro hydropower sector stands at the threshold of a transformation. With its extensive water resources, strong government backing, significant international financing, and a pipeline of hundreds of shovel‑ready projects, the country is well positioned to make micro hydropower a cornerstone of its green energy transition. By 2026, nearly 3,000 micro‑HPPs will bring electricity to 280,000 people, reduce natural gas consumption, cut carbon emissions, and create jobs across the country. By 2030, the sector will have expanded further, supported by pumped‑storage systems, digital monitoring technologies, and an increasingly sophisticated energy grid. As Uzbekistan continues its journey toward a resource‑efficient green economic development model, micro hydropower will play an indispensable role in powering the New Uzbekistan.