Power Purchase Agreement (PPA) in Uzbekistan 2026: How to Sell Electricity from a Solar or Wind Plant

As of November 2026, electricity from a solar or wind plant in Uzbekistan is sold in three ways. A large plant signs a power purchase agreement (PPA) with the central buyer, JSC Uzenergosotish: in the published resolutions on solar and wind projects this is a guaranteed purchase for 25 years, and the right to the project comes from an international tender under the PPP law, or from direct negotiations and an investment agreement with the Government. A plant of up to 1 MW built for the owner's own needs sells its surplus to JSC Regional Electric Networks (Hududiy Elektr Tarmoqlari) at 80% of the group II tariff. And from 1 January 2027 the market rules (Cabinet of Ministers Resolution (CMR) No. 527 of 30.09.2026) take effect: independent producers and plants of up to 5 MW will be able to sign direct bilateral contracts with consumers for a term of up to one year.

In brief

• PPA buyer: JSC Uzenergosotish. Since 1 January 2025 the obligations of JSC National Electric Grids of Uzbekistan (NEGU) under PPAs with private plants have been transferred to it (Presidential Decree UP-166, para. 3).
• Term: 25 years in the published projects (PP-125, PP-158, PP-276); a PPP agreement may run from 3 to 49 years (Art. 28 of Law ZRU-537); the central buyer's standard contracts at Regulator tariffs run for up to 12 months (Art. 31 of Law ZRU-939).
• Price: in PP-125, PP-158 and PP-276, a fixed tariff denominated in foreign currency and paid in soums; each project has its own rate, in PP-125 USD 0.03 per kWh and USD 6.33 per MW (hour) of battery availability.
• Plants up to 1 MW: surplus is bought by Regional Electric Networks at 80% of the group II tariff; the network decides on an offer within 10 working days (CMR No. 247).
• Direct contracts from 01.01.2027: up to 1 year; a large consumer is one connected at 6 kV or above and consuming at least 10 million kWh a year; a small plant is one of up to 5 MW.
• Generation licence: state duty of 30 BRV = UZS 13,200,000 plus 2 BRV = UZS 880,000 for review, 15 working days, no expiry; it must be obtained before construction starts.

Which acts apply

The former electricity law, No. ZRU-225 of 30.09.2009, is repealed: Law No. ZRU-939 of 07.08.2024 has applied since 9 November 2024 (version of 08.06.2025). Law No. ZRU-539 of 21.05.2019 on the Use of Renewable Energy Sources (RES) has not been replaced; its latest amendments came with Law No. ZRU-1109 of 30.12.2025. The PPP Law No. ZRU-537 of 10.05.2019 applies in its version of 08.05.2025, and the Investment Law No. ZRU-598 of 25.12.2019 in its version of 25.07.2026. Beyond the laws, the key acts are the market concept (Presidential Decree UP-166 of 28.09.2023), the market rules (CMR No. 527), surplus sales (CMR No. 247, version of 09.10.2026), licensing (CMR No. 91, version of 15.10.2026) and grid connection (CMR No. 610 as amended by CMR No. 528). Presidential decrees are cited as UP and presidential resolutions as PP. BRV, the base calculation value, has been UZS 440,000 since 1 September 2026 (UP-115).

Who buys the electricity

The central buyer is a legal entity entitled to buy and sell electricity centrally: a joint-stock company 100% owned by the state, operating under a licence of the Energy Market Development and Regulation Agency (the Regulator), and acting as market operator until a wholesale market exists (Arts. 3, 30 and 64 of Law ZRU-939). CMR No. 527 and the market concept name it JSC Uzenergosotish.

In practice: in PP-125 (PPA of 30.11.2023) the buyer is NEGU; in PP-158 (PPA of 13.09.2024) and PP-328 (a waste-to-energy project, PPA of 11.09.2026) it is Uzenergosotish, while PP-276, even as amended by PP-379 of 17.12.2025, still names NEGU as the buyer. NEGU remains the trunk-grid operator and a party to grid connection agreements. Check the buyer in your own PPA against the contract and the resolution that approved it.

For plants up to 1 MW the buyer is JSC Regional Electric Networks; its Energosavdo branch is the "designated supplier" (para. 3 of the Concept). The Regulator sets tariffs, issues licences and hears disputes (Arts. 9, 46 and 63 of Law ZRU-939).

Large projects: PPP tender or investment agreement

Route 1. Public-private partnership (PPP)

The private partner is chosen by tender or direct negotiations (Art. 21 of Law ZRU-537). Projects above USD 1 million go through a two-stage tender; direct negotiations are allowed only in the cases of Art. 25: defence, exclusive rights or a land plot without which the project is impossible, and cases set by acts of the President and the Cabinet of Ministers. A private initiator may propose a project itself: if nobody expresses interest within 45 days of publication of the concept, direct negotiations follow; otherwise a single-stage tender is held regardless of value (Art. 17). A concept above USD 10 million is approved by the Cabinet of Ministers (Art. 18). The authorised PPP body is the Ministry of Economy and Finance (para. 1 of CMR No. 720), although the law still names the former Agency.

Example: PP-125 of 14.03.2024. Masdar, the winner of an international tender, is building a 300 MW solar plant with a 75 MW battery in Kashkadarya region; a State Support Agreement was signed with the Government and a PPA with NEGU.

Route 2. Investment agreement

The Government may sign an investment agreement with a foreign investor, and must do so where it grants additional guarantees and benefits (Arts. 40–43 of Law ZRU-598). This is the structure of PP-158 of 30.04.2025 (a 500 MW solar plant in Farish district: an agreement with the Ministry of Investments, Industry and Trade of 05.04.2025 and a PPA with Uzenergosotish reached through direct negotiations) and PP-276 of 22.07.2024 (a 300 MW wind plant in Nurata district).

Where the auctions are held

The law speaks of grid connection "on a competitive basis" and of tariffs "based on competitive bidding" (Arts. 15 and 20 of Law ZRU-539), and the central buyer must sign a contract with the winner of a tender for a new plant (Art. 31 of Law ZRU-939). We found no general public selection procedure for solar and wind projects on lex.uz: the published acts show an international PPP tender and direct negotiations. An auction sets prices only for micro and small hydropower plants (CMR No. 527, para. 8).

Who sells how: project types

Small plants for businesses and households

CMR No. 247 applies to solar, wind and biogas plants of up to 1 MW installed for the owner's own needs. The producer sends the buyer an offer with a technical description, the connection diagram, a forecast of annual output and a signed draft contract (para. 5); the buyer signs a contract under the Civil Code within 10 working days (paras. 6–7); the parties install meters compatible with the automated metering system (para. 8). Regional Electric Networks pay 80% of the group II tariff on a guaranteed basis, for at least 10 years at the consumer's option; the tariff itself is approved separately. Payment follows the reconciliation act and invoice (paras. 9, 15). A legal entity pays for grid electricity at the usual tariffs and sells its surplus separately (para. 13); owners of installations up to 20 kW notify the network online. Para. 9 takes individuals under the "Quyoshli xonadon" programme out of the 80% rule: they receive a budget subsidy of UZS 1,000 per kWh of positive difference between electricity fed in and consumed, after registering in the "Soliq" app or on the unified public services portal (as amended by CMR No. 546 of 09.10.2026).

Licence. No licence is needed if a plant of under 5 MW generates only for its own needs, is not connected to the power system, or is a micro power plant of up to 500 kW (Arts. 8 and 24 of Law ZRU-939). A plant of 500 kW or more that sells its output into the grid rather than generating for its own needs falls under none of these exceptions, so the general rule of Art. 24 applies and a licence is required.

Connection (CMR No. 610): for producers up to 20 kW, technical conditions are issued within 10 working days (para. 15); an individual in a private house connecting at 0.23–0.4 kV needs no Uzenergoinspection commissioning permit (para. 42); from 500 kW a connection study of up to 90 calendar days, or an assessment of up to 30, is required (paras. 16–20). The application goes through the unified public services portal or the "ELEKTR" platform.

Taxes. Profit from selling electricity into the general grid from RES installations of up to 100 kW is taxed at 0% for three years from commissioning, or ten years where the solar panels come with storage of at least 25% of their capacity (Art. 337 of the Tax Code). Installations of up to 100 kW are exempt from corporate property tax and, for land occupied by stand-alone installations, corporate land tax for the same 3 or 10 years, and those of 100 kW or more for 10 years (Arts. 414, 428).

Direct contracts with consumers

The law allows three forms. A local grid: the RES producer builds it at its own expense and sells energy to legal entities and individuals under a contract (Arts. 11, 15 of Law ZRU-539; Art. 42 of Law ZRU-939); the rules for local grids are approved by the Cabinet of Ministers, so check them. Transit through the Regional Electric Networks grid for plants up to 1 MW, at the tariff of the interagency tariff commission (CMR No. 247, para. 4). The market from 01.01.2027 (CMR No. 527): independent producers, meaning licensed private companies without a PPA, sell to large consumers at an agreed price; a large consumer is connected at 6 kV or above and consumes at least 10 million kWh a year, and budget bodies, utilities, farms and mobile operators are excluded (para. 2). Micro and small plants of up to 5 MW sell to non-household consumers connected to the distribution operator's grid in the same region (para. 8).

A bilateral contract: a term of up to one year (para. 10); it takes effect on registration with the market operator, for now the central buyer (paras. 6, 16); it states the price or formula, settlement terms, deviations from the schedule, grounds for suspension, and the split of transmission and dispatch charges (para. 15); the volume sold may not exceed actual output, nor the volume bought actual consumption (paras. 13, 14, 23); the remainder goes at the regulated tariff (para. 11).

Key PPA terms and investor risks

Full PPA texts are not published: presidential resolutions "take note" of signed agreements and list the main points. The rest is set by the contract itself.

Curtailment. From 2027 solar and wind plants give the system operator a forecast (by 10:00 the day before and, on the delivery day, 4 hours, 1 hour and 15 minutes ahead); if the deviation exceeds the norm, the operator limits generation (paras. 42–43 of CMR No. 527). Who bears the loss is decided by the PPA.

Tariff. The law classes the tariffs for new plants built under direct agreements as regulated: they cannot be changed unilaterally, but if a tariff changes after the contract is signed, the new amount applies (Art. 44 of Law ZRU-939).

Pledge. Under the licence passport, a plant's assets may not be pledged or disposed of without the Regulator's written consent, and a change of owner is notified 60 working days ahead and may not take place before the Regulator approves it.

Currency and disputes. A tariff in dollars with revenue in soums means conversion when profit is repatriated: see our articles on currency control and repatriation of proceeds and investor guarantees. Under the market rules, disputes go through the Regulator: discussion within 5 working days and, without agreement after 30 days, the court (CMR No. 527, paras. 71–75); the law also allows going to court directly (Art. 63 of ZRU-939). On arbitration, see our review of international arbitration.

Permits and sequence

The licence is obtained before construction; the package includes, among other things, title to the site, the facility passport, the state environmental review opinion, a business plan covering at least three years, a bank guarantee for the annual fee, technical conditions and a connection agreement. The annual fee is a per-kWh rate multiplied by the sales forecast, at most 2% of the previous year's turnover (paras. 53–54). In the published projects the Ministry of Energy takes the plot into permanent use and leases it to the project company for the project term, with rent equal to the land tax (PP-125, para. 7; PP-158, paras. 4, 8; for several wind projects, PP-314 of 08.07.2022).

Common mistakes

• Treating a 25-year guaranteed purchase as the right of any plant: it arises from a specific agreement and a presidential resolution.
• Not checking who the buyer is: NEGU's obligations passed to Uzenergosotish, but some resolutions still name NEGU.
• Confusing a micro power plant of up to 500 kW (Law ZRU-939) with a micro and small plant of up to 5 MW (CMR No. 527).
• Starting construction before the licence, or connecting a plant of 300 kW or more without registration.
• Selling energy to a third party without a local grid or a formalised transit arrangement.

How Pactum helps

• We identify the project model: PPP, investment agreement, small plant, local grid or direct contract.
• We prepare and review the PPA, including in English, from UZS 20,000,000.
• We support a solar power plant project, from licence, connection, land and environmental steps to contracts with contractors and lenders, from UZS 50,000,000.
• We structure the deal with a foreign investor: see joint ventures with a foreign partner and investment from the UAE and Saudi Arabia.
• We do not promise the outcome of a tender or negotiations; in court you are represented by an advocate of our partner bureau under a separate agreement.

Learn more on our page on foreign investment in Uzbekistan or book a lawyer consultation: 60 minutes, UZS 300,000, credited toward the cost of the service. Phone +998 78 113 81 01, Telegram, info@pactum.uz, office: 21 Afrosiyob Street, Tashkent.

FAQ

Who buys electricity from a solar or wind plant under a PPA in Uzbekistan?

JSC Uzenergosotish, the central buyer. Since 1 January 2025 NEGU's obligations under PPAs with private plants have been transferred to it (Decree UP-166, para. 3), and the PPA under PP-158 was signed with it. Plants up to 1 MW sell their surplus to JSC Regional Electric Networks.

Can electricity be sold directly to a business?

Yes, under the rules. From 1 January 2027 independent producers sell to large consumers (connected at 6 kV or above, at least 10 million kWh a year) and plants up to 5 MW sell to non-household consumers in their region; a contract runs for up to one year (CMR No. 527). Sales through a plant's own local grid are possible already (Art. 11 of Law ZRU-539).

How much is paid for surplus from a plant of up to 1 MW?

80% of the tariff set for group II consumers, for at least 10 years at the consumer's option (CMR No. 247); the tariff itself is approved separately, so take the figure in force on the contract date. Individuals under the "Quyoshli xonadon" programme follow a different rule: a budget subsidy of UZS 1,000 per kWh of positive balance.

Is a licence needed to sell electricity?

Yes, for generation: UZS 13,200,000 state duty (30 BRV) and UZS 880,000 for review (2 BRV), 15 working days, no expiry (CMR No. 91). It is not needed for generation solely for own needs at a plant of under 5 MW, for a plant outside the grid, or for a micro power plant of up to 500 kW (Art. 24 of Law ZRU-939).

How long is a PPA?

In the published solar and wind projects, 25 years of guaranteed purchase (PP-125, PP-158, PP-276). A PPP agreement may run from 3 to 49 years (Art. 28 of ZRU-537), and the central buyer's standard contracts at Regulator tariffs for up to 12 months (Art. 31 of ZRU-939).

Is an investor protected against changes in legislation?

Partly. The Investment Law fixes 10 years of application of the earlier legislation if conditions worsen, but only in the cases listed in Art. 19 of ZRU-598 (repatriation, limits on the amount of investment and on foreign shareholdings, visas and similar extra requirements). The PPP law allows compensation for higher costs if the agreement so provides, but not for changes in taxes unless they are discriminatory (Art. 34 of ZRU-537).

Sources

• Law No. ZRU-539 of 21.05.2019 (RES), in Russian
• Law No. ZRU-939 of 07.08.2024 (electric power industry), in Russian
• Law No. ZRU-537 of 10.05.2019 (PPP), in Russian
• Law No. ZRU-598 of 25.12.2019 (investments), in Russian
• Decree UP-166 of 28.09.2023, market concept (in Uzbek)
• CMR No. 527 of 30.09.2026, market rules (in Uzbek)
• CMR No. 247 of 14.06.2023, surplus electricity (in Uzbek)
• CMR No. 91 of 13.02.2025, licensing (in Uzbek)
• CMR No. 610 of 22.07.2019, connection (in Russian) and CMR No. 528 of 24.08.2024 (in Uzbek)
• PP-125 of 14.03.2024, PP-158 of 30.04.2025, PP-276 of 22.07.2024, PP-328 of 14.09.2026, all in Russian
• PP-308 of 30.08.2024, PPP to 2030, PP-314 of 08.07.2022, land for RES, CMR No. 720 of 30.10.2024 (in Uzbek)
• Tax Code, Arts. 337, 414, 428, Land Code, Art. 9, Law No. ZRU-1036 of 24.02.2025 (environmental review), UP-115 of 23.06.2026, BRV UZS 440,000, all in Russian