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NEWS AND EVENTS
March 23, 2015
TECHNOLOGIES... No Savings, No Economy
Uzbekistan has been working on a program of cutting energy consumption, introduction of energy-saving technologies and systems in economy and social sector for the period 2015-2019. Its implementation will enable the country to take the lead on energy efficiency in the region, and significantly enhance the competitiveness of the real economy in the coming years.

A fundamental reduction of industrial energy consumption and the rational use of non-renewable hydrocarbon resources has been a modern trend of any economy, if it seeks to hold key positions on the global market. The causes of these processes are fairly obvious. The higher the production cost, the less competitive the product is in foreign markets. It is also vital to keep in mind the limits of many mineral resources like oil, coal and gas, the backbone of the contemporary power system.

In order to avoid a collapse in the future, many countries of the world, and especially in the European Union, have embarked on intensive implementation of various programs and projects over the past two decades to diversify their energy sources and optimally implement conservation technologies. Energy is a very specific system, which is defined by the investments channeled decades ago. For example, the construction of a large power plant may last about five years apart from the time spent for the project development, and many other related factors. Therefore, steps should be taken in advance.

The new program is destined to help Uzbekistan with making a drastic step forward. It envisages strengthening the legislative component of the energy conservation policy, and particularly the development of measures on limitation of the use of energy-consuming equipment and appliances, up to a total ban. For example, it is projected to connect the newly established business entities to the power and gas supply networks solely in case if they use energy-saving technological equipment.

Specific measures also include the ban for energy supply to the business entities that are not equipped with modern electronic metering devices that are compatible with the automated system of accounting and control of energy consumption from 1 January 2017.

Drawing on international practice and criteria, the document will also provide conditions for reducing the loss rate of energy resources in their production, extraction, transportation, and use. The provision of energy efficiency in the construction of new and reconstruction of existing residential and commercial buildings and industrial facilities through the introduction of modern architectural solutions and new types of building structures and insulation materials should be key pillar of success. It is expected that the domestic enterprises that have established the production of advanced construction materials will contribute to this process.

The introduction of alternative energy sources in the current system of power generation is going to be a key element of the new program. To stimulate this process, the companies that produce energy using alternative sources will be exempt for 10 years from property tax, compulsory contributions to special funds, and the value-added tax with regard to the energy sold to Uzbekenergo enterprises. The manufacturers of plants for energy production from renewable sources will be exempt from all taxes and mandatory contributions for five years. The manufacturers of energy efficient equipment, its consumers will get certain customs privileges for importing the related equipment, components, devices, spare parts and raw materials for projects in energy conservation and alternative energy.

Another important undertaking implies a complete rejection of free circulation of incandescent lamps over 40 watts since September 2015, their sales on the territory of the republic as of January 2016.

(Source: «Uzbekistan Today» newspaper)


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