Uzbekistan Claims a Rank in Energy Generation

The energy used in power generation today is based on fossil fuels (coal, oil and gas). About 90% of the power comes from these materials. At the same time changes in the traditional energy structure, in which oil and gas were dominant, have become necessary in recent years. The subject has been touched in numerous international conferences held throughout the globe. Uzbekistan shares its huge potential in oil and gas sector with a fair balance in cooperation with corresponding international organizations. Now seems like the very time to see the outcomes resulting from the efforts invested into the development and preservation of natural resources for the future generation…

The use of renewable energy is wide spread in industrial countries (USA, Japan, Germany, Italy, Spain, Austria, Great Britain, Netherlands, Israel etc.), placing high emphasis on energy saving and environment issues. For example, developed countries stated the task of increasing the share of electric power generating from renewable sources from 13.9% in 1997 to 22.1% in 2010.

The technical potential of solar energy in Uzbekistan exceeds 4 times the yearly need of energy sources (65 million tonnes of oil equivalent for the beginning of 21st century). It's stated that economic potential of solar power in Uzbekistan is 98.5% of all kinds of RPR, so that solar power could be the dominant deciding factor on planning the share of RPR in total energy balance of the country. According to estimated data, the total potential of RPR is about 70 billion tonnes of oil equivalent (o.e.); technical potential is 188.4 million tonnes of oil equivalent. Currently only 0.6 million of o.e. (0.3%) technical potential is used.

One of the perspective fields of practical use of solar power in Uzbekistan is generation of low-grade heat with further usage in hot water supply systems. Besides solar low-grade heat power can be applied in such fields as heating supply for agriculture cultivation facilities (hothouses) and cattle breeding objects (cattle farms); drying and canning of fruits and vegetables; sanitary & domestic and production needs of enterprises etc.

The other field of solar power application in Uzbekistan is solar power conversion into electric power. On selection of perspective directions of solar power development the highest availability of photo electric and thermo dynamic conversion methods were considered rather then thermo electric and thermo ion methods due to less effectiveness of the later two and less readiness for practical application.

According to estimations, electric power supply to remote settlements through the building of power transmission lines is about 20-30 times more than the installation of a photoelectric system. There are about 4,500 herder sites and about 900 remote villages, which are practically impossible to provide with electric power and drinking water by traditional methods. In this situation application of wind/solar installations is the only one alternative choice for improving the social being. Beside of all others, those installations could be used for water lifting and its desalination.

Amudarya and Syrdarya are two big river systems in Uzbekistan. Most hydroelectric power stations (HPS) in Uzbekistan are located in Syrdarya River and in its inflows. Currently 30 HPS operate in Uzbekistan with total capacity of 1684 Megawatts, producing up to 6.4 billion Kilowatt/h of electricity annually. For all that, only 30% of available hydroelectric power resources of big rivers of the Republic are consumed.

Small rivers, droves and water reservoirs have big potential as well. This potential capacity is estimated at 1,760 Megawatts, production up to 8 billion Kilowatt/h of electricity. Nevertheless this potential is unassimilated so far. Therefore, the total hydroelectric power potential of Uzbekistan is estimated at the capacity of 7,445 Megawatts with production of 26.7 billion Kilowatt/h of electricity a year, with consumption level of 23%. Uzbekistan has a large potential in small hydroelectric power, which is accounts for 3.2% now. Research in this field has revealed the opportunity of producing up to 8 billion Kilowatt/h of electricity a year.

Effective taxation policy is another ground for growth of this sector. Earlier in a conference on the theme "Problems of taxation of oil and gas sector of Uzbekistan" held in Tashkent, Leila Ponomareva, the deputy head of department of economy and finance of Uzbekneftegaz noted that development and role of oil and gas industry is important for the economic development of Uzbekistan and taxation system of hydrocarbon producers is main factor, which determines the effective operation of the sector as a whole.

Ms. Ponomareva talked about the potential of Uzbekistan for attracting investors and problems in the sector, connected with taxation of enterprises in the sector. She said existing hydrocarbon potential, legal base, developed oil and gas infrastructure provide a reliable foundation for investors, who make foreign direct investments in the country.

Brown coal reserves are estimated at 4.4 billion tones, which are concentrated in Angren, Baysun and Shargun coal-fields. Particularly Uzbek coal is characterized by a high heating value, low ash value and could be used additionally for thermal power plants. Developing cost-effective, profitable and efficient export routes for Central Asia resources is a formidable, but not impossible, task. It has been accomplished before. A commercial corridor, of a "new" Silk Road, can link the Central Asia supply with the demand -- once again making Central Asia the crossroads between Europe and Asia. And Uzbekistan boasts a big potential to become a leading country in this process.

Russ Huddleston, an expert on natural resources, oil and gas development told UT that he is “in full agreement with the installation of new export routes from Central Asia to Europe and South Asia and the rest of the world.”

This is important because Europe & South Asia as international prices for oil & gas comprises a substantial part of natural resources Uzbekistan that are in line with other NIS countries. And we need more capacity for exporting oil & gas. Central Asian Gas export to Europe has proved economical, and gas to new markets in India, Pakistan and China is definitely possible and the time, NIS countries understand that is right to do it now.

Joining or looping the Baku-Tbilisi-Ceyhan oil pipeline with an export corridor across the Caspian from Kazakhstan or Turkmenistan would be the first and most obvious route to consider for oil export. Tbilisi-Sup’sa and Tbilisi-Batumi oil pipelines could be upgraded to further enhance the oil export capacity.”

According to the report by Ulmishek and Masters (1993), the entire Amu-Darya Basin contains 0.7 billion barrels of oil in identified reserves and 3 billion in undiscovered reserves. For gas, the cumulative production is 86 trillion ft3; identified reserves are 200 trillion, and undiscovered reserves are assessed at 75 trillion. Over 25% of them are found in Uzbekistan.

“I am happy to see the governments of Central Asia use their energy resources for the improvement of their own industries and economies. Particularly, Uzbekistan does it by opening up the exploration and production to modern international companies, giving them a fair return and reinvest the government’s share in improving its economy and moving on to renewable energy and a non-energy economy before the oil & gas is depleted”, said R. Huddleston

Asian crude oil importers, particularly from Japan, are looking to Central Asia and the Caspian as a new strategic source of supply to satisfy their desire for resource diversity. The Trans-Afghan Pipeline (TAP) benefits Central Asian countries because it would allow them to sell their oil in expanding and highly prospective hard currency markets.

A recent study for the World Bank states that the proposed pipeline from Central Asia across Afghanistan and Pakistan to the Arabian Sea would provide more favorable netbacks to oil producers through access to higher value markets than those currently being accessed through the traditional Baltic and Black Sea export routes.

“The Trans-Afghan Pipeline (TAP) is a very, very good idea. But I believe it must not stop in Pakistan; it must be allowed to export Central Asian gas at least to India, and hopefully to China as well.

This is important as India and China are emerging developing nations with a huge thirst for energy. Hard currency and international prices can be obtained if the TAP pipeline is built. This would also benefit Afghanistan over and above the tariff fees.”

R. Huddleston also went on to say “It was originally intended for gas, but it could make sense to add an oil pipeline in the same corridor, perhaps later. Afghanistan needs access to this energy as well to develop its economy if it ever wants to stop the radical Islamic movements and illegal poppy growing. It may well be that in the future Afghanistan has gas to sell to Pakistan, India and China via the TAP.”

Programmes on power recourses saving are being implemented in Uzbekistan. One of the most important among them is the measures on gas, cold and hot water consumption. With that purpose the Uzbek government issued a decision on obligatory installation of water and gas recording devices. The experience of other countries shows that mass application of such devices reveals to decrease of water consumption by 30-35%. Thus, it would cause to power resources saving in general. The government of Uzbekistan has developed an Energy Saving Programme. The programme is directed on application of energy saving technologies, development of hydro, solar, thermo and wind energy resources.