1. The challenge of greater energy efficiency in Uzbekistan
Martin Raiser
Country Manager Uzbekistan
The World Bank

2. Uzbekistan’s Energy Resources: A Fossil Fuel based system

3. Energy efficiency in Uzbekistan is among
the lowest in the world

4. Commercial and technical losses are a key problem

5. Significant upside potential
but uncertainty over resource base and significant investment needs
Implications:
increase in domestic gas availability for thermal generation of bcm
investment needs in power sector of US$2’300 mln
Additional investment needs in upstream oil & gas

6. The promise of greater energy efficiency
If Uzbekistan
Achieved Russian’s current level of Electricity Intensity by 2015
Savings would amount to 41’000 GWh or $1.4 billion annually
Reduced Commercial and Technical Losses to 10% by 2015
Savings would amount to 7’200 GWh or $250 million annually

7. Challenges for greater energy efficiency
Price adjustment for demand reduction
- Good progress, but worry about affordability for the most vulnerable (already energy 25% of their budget)
Improved corporate governance for commercial and technical loss reduction
- Metering program is absolutely necessary
- Needs to be integrated with MIS system to reduce scope for corruption
- Increased cash flow crucial to fund urgent investments
Attract private sector for greater efficiency
Performance based contracts to create incentives to save
Competitive tendering to achieve least cost solutions

8. The role of the World Bank and other
donors
Support for priority investments – WB credit planned for:
Metering and billing in electricity and gas distribution
TA for improved MIS in Uzbekenergo and gas distribution
targeted social support to the vulnerable
development of sound regulatory framework
Dialogue of broader sector reform issues
Audit of oil & gas reserves
Advice of attracting private investment into energy sector
Maximizing opportunities for export and regional cooperation (see next presentation by R. Sharma)