Energy Sector Working Group

Foreign Investors Council Energy Sector Working Group
convened in Tashkent 

After the 4th interim session of the Foreign Investors Council (FIC), the FIC Secretariat and Ministry of Investment, Industry and Trade (MIIT) jointly prepared a memo with a Roadmap based on proposals from investors, European Bank for Reconstruction and Development, and MIIT. Relevant ministries and agencies were tasked with developing draft legal documents and taking action within specified timelines. Among these was the formation of a dedicated working group under the Council to address issues related to the energy sector. 

On 23 January 2025, the FIC hosted its Inaugural Energy Sector Working Group meeting at the Bukhara Hall of the Hyatt Regency Tashkent. Senior representatives from international energy companies, legal and professional firms, and business associations gathered to examine opportunities and critical issues facing Uzbekistan’s energy sector. 

Participants emphasized the importance of improved communication with government entities to avoid delays and misunderstandings. They also called for clearer guidelines in the new energy law, particularly regarding licensing fees and shareholding rules, suggesting that more frequent and constructive engagement with relevant regulators could help resolve ambiguities. 

Discussions covered the opportunities and challenges posed by localization requirements. Investors noted that while local sourcing can spur economic growth, there are concerns about costs, quality, and limited sustainable financing for local suppliers. A phased approach to localization and stronger capacity-building measures were proposed. 

Carbon credits and decarbonization initiatives featured prominently, with investors calling for the development of an effective monetization mechanisms and adopt market-driven pricing. The state of transmission infrastructure was another focal point, as companies face frequent delays due to inadequate grid capacity and an uncertainty in long-term master planning. Proposals included collaboration with international consultants to strengthen project planning. In addition, participants emphasized the importance of establishing a clear strategy for the long-term development of hydropower in Uzbekistan, highlighting opportunities for increased foreign investment in this sector. 

Environmental regulations, land-use policies, and unpredictable land tax increases also emerged as pressing topics. Participants urged greater clarity in legislation and more predictable tax calculation methods to improve project feasibility. They recognized the government’s willingness to address investors’ concerns, along with new tax holidays for renewable energy ventures, though they noted a need for clearer guidelines on how to apply these incentives. 

In concluding the meeting, attendees agreed on a plan of action that includes drawing up a prioritized list of key issues for government stakeholders, scheduling the next meeting for February 2025, and inviting regulatory representatives to future sessions.  


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