π Tender Overview
Project ID: P171683
Region: Europe and central asia
Commitment Amount: Us$ 300.00 million
Total Project Cost: Us$ 535.00 million
The proposed Project would have the following four components: (i) Digitalization of the electricity transmission sector; (ii) Power grid strengthening and modernization; (iii) NES Institutional Development and Project Implementation Support; and (iv) Electricity Market Development.Component 1: Digitalization of the electricity transmission sector. This component will take advantage of modern digital technologies to support the enhanced monitoring, automation, and control of the power system in Uzbekistan. Digital technologies to be deployed under this component would comprise SCADA, EMS, and substation Remote Terminal Units (RTUs). The component will also support an upgrade of NESβ digital telecommunication network to enable those systems to be fully functional.Component 2: Power grid strengthening and modernization. This component will finance a portion of the NES priority investment program for 2021β2026, including upgrade and modernization of existing high-voltage substations and lines and construction of new transmission substations and lines.29.The Government ofUzbekistan (GoU)is targeting to increase the share of non-hydro RE in the capacity mix to 25 percent by 2030, including 5,000 MW of solar and around 3,000 MW wind. In the meantime, obsolete and inflexible power grid infrastructure would prevent realization of that ambition clean energy transition program, if not immediately strengthened and modernized. The main part of grid assets was commissioned starting from 1940s with no upgrade and modernization so far, thus putting the supply security at a high risk. A preliminary assessment concludes that, Uzbekistanβs power system at current shape can accommodate only around 600-800 MW of variable RE. In the meantime, while the GoU jointly with WBG, ADB and EBRD has launched the preparation of 3,000 MW of solar andwind to be commissioned by 2025 (and 8,000 by 2030). The reliability and safety of electricity supply may potentially be negatively affected if the transmission grid is not enforced accordingly for gigawatt (GW)-scale variable RE penetration. Therefore, this component will expand the capacity and improve the flexibility of the power grid to absorb and enable the use of increasing RE.