Tariff Liberalization as a Driver of Energy Efficiency and Sustainable Consumption in Uzbekistan
Tashkent, Uzbekistan (UzDaily.com) — As part of the ongoing reforms in Uzbekistan’s energy sector, a significant milestone has been the implementation of a tariff liberalization mechanism aimed at creating a sustainable market environment, encouraging rational consumption, and attracting investments amid growing demand for energy resources. Since May 2024, the country has adopted a new tariff policy based on the principle of a social consumption norm.
The Center for Economic Research and Reforms conducted a comprehensive study covering 3,516 households nationwide. The analysis also utilized aggregated data from 3.5 million natural gas subscribers and 8 million electricity consumers. The purpose of the study was to assess the real impact of the new tariff model on household behavior.
The results demonstrate a positive trend: between May and December 2024, total electricity consumption decreased by 10.6% compared to the same period in 2023, equivalent to a saving of 1.3 billion kWh. The number of high-energy-consuming households dropped notably — while in 2023 around 80,000 families used more than 10,000 kWh per month, in 2024 their number fell to 15,000.
At the same time, basic consumption norms remained stable: in 2024, 72% of consumers used up to 200 kWh per month, a figure consistent with the previous year. Similar trends were observed in natural gas consumption: the share of subscribers consuming up to 500 cubic meters rose from 54% to 58%, indicating sustained energy stability among the majority of households.
The most significant reductions in consumption were recorded in regions with initially high demand: Samarkand, Tashkent, Andijan, and Namangan regions. These data point to a shift toward more responsible and economical resource use.
Alongside reduced energy consumption, improvements in electricity supply quality and gas availability were noted. Forty-seven percent of respondents reported better electricity delivery, especially in Surkhandarya (78%), Syrdarya (70%), and Namangan (67%) regions. Natural gas became more accessible for 39% of those surveyed, notably in Khorezm, Surkhandarya (each 68%), and Jizzakh (60%) regions. Liquefied gas supply improved for 45% of households, particularly in Syrdarya (73%), Surkhandarya (62%), and Namangan (59%) areas.
A key stimulus for sustainable energy use has been the widespread adoption of energy-efficient solutions at the household level. Over 90% of respondents reported implementing at least one measure to reduce energy costs. The most common practice was switching to LED lighting, adopted by 87% of households, with over 90% penetration in regions such as Karakalpakstan, Khorezm, Navoi, and Tashkent.
Additional measures included insulating windows and doors (44% of households), especially prominent in Kashkadarya (84%), Bukhara (69%), and Khorezm (54%) regions, as well as purchasing energy-efficient appliances (31%). The highest uptake in these measures was observed in Jizzakh (60%), Navoi (59%) regions, and the Republic of Karakalpakstan (54%).
Interest in installing renewable energy sources is also growing. By the end of 2024, over 64,000 households across the country had equipped their homes with solar panels totaling 223.4 MW in capacity. Annual generation reaches approximately 313 million kWh, allowing savings of more than 104 million cubic meters of natural gas. More than half of the system owners expressed satisfaction and interest in expanding their own generation capacity. The potential demand for solar panels in Uzbekistan is estimated at 1.9 million households, with the domestic market potentially exceeding $2.3 billion.
Despite these successes, the use of outdated heating systems, including inefficient gas boilers and solid-fuel stoves, remains widespread. This underscores the urgent need for comprehensive modernization of housing infrastructure and the development of support mechanisms to help the population transition to modern technologies.
In conclusion, tariff liberalization is already delivering tangible results — not only through reduced consumption and improved energy efficiency but also by expanding public access to quality energy services.
These processes are laying a solid foundation for the sustainable development of the sector and creating conditions for deepening market reforms.