ADB approves $200m loan for Uzbekistan’s power distribution system

It aims to digitalise 26 distribution substations in the country.

The Asian Development Bank (ADB) has given the green light for a $200m loan that will support the modernisation and digitalisation of Uzbkeistan’s power distribution system which will help improve the country’s energy efficiency and reliability.

According to ADB, the loan is in line with its Distribution Network Digital Transformation and Resiliency Project which aims to digitalise 26 distribution substations across the country.

“This project will enable Uzbekistan to reliably deliver the additional energy the country needs to generate to meet rising demand,” said ADB Senior Energy Specialist Seung Duck Kim.

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“Upgrading transmission and distribution systems will also allow them to integrate more renewable energy into the grid, given that smart and flexible systems can better manage the variability of renewable energy like solar and wind,” Seung added.

Agence Française de Développement will co-finance with around $75m that will be partially administered by ADB.

ADB said the project will also strengthen the state-owned distribution firm Regional Electric Power Networks’ financial management capacity, with a $250,000 technical assistance grant to support the institutionalisation of gender mainstreaming in the company.