Recently, the government of Uzbekistan has made notable strides toward achieving SDG 1: No Poverty, as highlighted in a roundtable discussion by the Oliy Majlis of the Republic of Uzbekistan and UNDP. A key factor in this progress could be the introduction of renewable energy in Uzbekistan. This article examines how renewable energy could play a crucial role in alleviating poverty in Uzbekistan.

The Introduction of Renewable Energy

The World Bank, Abu Dhabi Future Energy Company (Masdar) and the Government of Uzbekistan have entered into a financial agreement to develop a 250-megawatt solar photovoltaic plant, paired with a 63-megawatt battery energy storage system (BESS). This project aims to deliver clean and reliable electricity to approximately 75,000 households.

It stands out as Central Asia’s first renewable energy initiative to include an integrated BESS, enhancing the efficiency and flexibility of the power system. This initiative will improve supply security and mitigate the intermittency associated with renewable energy generation. Thanks to the World Bank’s guarantee, the project ensures an affordable supply of renewable energy in Uzbekistan for both households and businesses throughout the country.

Affordable and Steady Energy Supply

Access to affordable and reliable renewable energy in Uzbekistan could be critical for improving the quality of life and economic opportunities for the poor. In many remote areas of Uzbekistan, access to electricity is limited or nonexistent. Yet, a steady supply of energy is crucial to rural farmers, especially for irrigation, as the impact of natural disasters could intensify soon. Therefore, the implementation of cost-effective renewable energy such as solar energy could greatly enhance the agricultural production of wheat landscapes in key regions in Uzbekistan, thus increasing incomes for the agricultural sectors, which account for approximately a quarter of the national economy

Also, these initiatives could help address the electricity shortages. For instance, the introduction of energy-saving technologies could improve living conditions reducing reliance on expensive and harmful fuels for cooking and heating and facilitating the establishment of small businesses.

In October 2019, the Uzbek government adopted a strategy to transform the Republic of Uzbekistan into a Green Economy by 2030. This strategy aims to increase the share of renewable energy to over a quarter of total energy use and to modernize industrial infrastructure with environmentally safe technologies.

Economic Growth and Job Creation

Renewable energy can significantly combat poverty by fostering economic growth and job creation. A reliable supply of renewable energy can bolster the national and regional economies, leading to the expansion of small and medium-sized enterprises. This growth can create employment opportunities during the construction, maintenance and operation phases of renewable projects.

For instance, in 2018, Uzbekistan joined the World Bank’s Scaling Solar program to kickstart the development of 1 GW of solar energy. This investment in solar power could assist the country in lowering greenhouse gas emissions and reducing the carbon intensity of its GDP. This green approach ensures that every sector such as business and social services could have a stable supply of clean and reliable energy. Moreover, the renewable energy sector can attract foreign investment, driving technological advancements and skill development among the local workforce.

The Future

In conclusion, Uzbekistan has set ambitious targets to halve its poverty rate by 2026 and become an upper-middle-income country by 2030. Renewable energy presents a formidable opportunity for Uzbekistan to combat poverty while promoting sustainable development. By investing in renewable technologies, Uzbekistan could stimulate economic growth, create jobs and improve the quality of life for its citizens. Furthermore, transitioning to cleaner energy sources could enhance environmental sustainability and resilience against climate change. As Uzbekistan continues its development journey, harnessing the potential of renewable energy could be crucial in empowering its population and reducing poverty.

– Hoi Ieng Chao

Hoi is based in Macau, China and focuses on Good News and Technology for The Borgen Project.

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