The Uzbek government has decided not to provide subsidies for wind farms in the country, even though developers are due to start construction of large projects imminently.
Uzbekistan had initially planned to provide some support to wind farm development — although the government had not disclosed specific details of this — but has now decided against it.
Sherzod Khodjaev, Uzbekistan’s deputy minister of energy, told the Uzbekistan 24 television channel that private investors such as the Asian Development Bank and International Finance Corporation should finance wind development.
He said he feared electricity prices would rise if the state subsidised wind power development.
Despite deciding against subsidising wind, the Uzbekistan government still plans to increase renewables’ share of the country’s overall electricity use to 25% by 2030 — most of which is expected to come from the targeted 3GW of wind power capacity.
It also plans to issue green certificates to Uzbek companies that buy wind energy. These certificates are likely to offer tax breaks, but more details are due to be revealed in the next couple of months.
Even without government subsidies, Abu Dhabi-based Masdar still plans to start construction of a 1.5GW wind farm in the coming weeks.