The Government of Uzbekistan is expanding support for small hydropower plants
The Government of Uzbekistan is expanding support for the construction of new small hydropower plants on the rivers of the republic. Now the country’s commercial banks can issue so-called “green” consumer loans for the construction of hydroelectric power plants.
At the end of last year, the Cabinet of Ministers adopted Resolution No. 894 dated 12/27/2024 “On amendments and additions to some decisions of the Government of the Republic of Uzbekistan in connection with the expansion of the use of renewable energy sources and the systematic implementation of tariff reform.”
The document introduces amendments and additions to five legislative acts of the Government of Uzbekistan, providing for:
- support for entrepreneurs engaged in the production of renewable energy installations;
- an increase in “green” consumer loans issued by commercial banks and compensation payments by part of the interest on them.
So, if earlier “green” consumer loans were allocated to individuals in national currency only for the installation of solar photovoltaic and wind power plants, as well as solar water heaters, then from now on they will also be allocated for the installation of:
- micro and small hydroelectric power plants;
- biogas production equipment;
- biogas plants;
- heat pumps;
- as well as the purchase of building insulation materials, household energy-efficient gas burners and boilers.
The condition has also been canceled that the interest rate of “green” consumer loans should not exceed 1.5 times the basic rate of the Central Bank of Uzbekistan in order to receive compensation to cover part of the interest rate exceeding the main rate of the Central Bank.
Changes and additions have been made to:
- Regulations on the Ministry of Energy of the Republic of Uzbekistan (appendix to the PCM Resolution No. 108 dated 09.02.2019);
- Regulations on the extra-budgetary Intersectoral Energy Saving Fund under the Ministry of Energy of the Republic of Uzbekistan (appendix to the PCM dated 09.10.2020 No. 640);
- Regulations on the procedure for the purchase by the population of renewable energy installations produced by domestic producers, with reimbursement of part of the costs of their purchase or in installments (Appendix No. 1 to the PCM dated 05.10.2022, No. 568);
- Regulation on the procedure for reimbursement of part of interest payments on a “Green” consumer loan (Appendix No. 1 to the PCM dated 09/29/2023 No. 517);
- Rules for the use of electric energy and natural gas (PCM dated 05/31/2024 No. 319).
The document was published in the National Database of Legislation of Uzbekistan and entered into force on 12/30/2024.
