Uzbekistan Turns to Electric Vehicles in Its Push for Green Energy Transition

Uzbekistan, Central Asia’s most populous country, is taking bold steps to reduce its carbon emissions and shift towards a greener economy, with electric vehicles (EVs) playing a pivotal role in this transition. Historically dependent on fossil fuels for electricity, Uzbekistan has been ranked as one of the world’s most carbon-intensive economies by the World Bank. To combat this, the nation has introduced significant measures to encourage the adoption of EVs as part of a broader green growth strategy.

In a bid to make electric and hybrid cars more affordable, Uzbekistan eliminated excise and customs duties on these vehicles five years ago. This move slashed prices by as much as 50%, according to estimates, leading to a surge in EV sales. Over the past three years, sales of electric cars have grown tenfold, reflecting the country’s increasing commitment to green energy.

For consumers like Timur Chutbaev, a project manager based in Tashkent, the lower prices were a strong incentive to invest in an electric car. Chutbaev explained that powering his EV is far cheaper than using diesel or gasoline vehicles, given Uzbekistan’s government-subsidized electricity rates. Charging his car at home costs him just $5 for 500 kilometers (310 miles) of driving, making EV ownership both economically and environmentally attractive.

Although EVs currently account for a small share of the market, their numbers are rising. In 2022, 25,000 electric vehicles were sold out of a total of 1.7 million car sales. Chinese EV giant BYD, which dominates Uzbekistan’s imports, has further entrenched its presence by opening a plant in the Jizzakh region. With an annual capacity of 50,000 plug-in hybrids, the facility marks BYD’s first venture outside of China and is expected to serve the broader Central Asian market.

However, the rise of EVs in Uzbekistan would not have been possible without investments in infrastructure. Alexander Abdullaev, CEO of local EV dealership Megawatt Motors, recalls the initial challenges of selling electric vehicles without an adequate network of charging stations. To promote EV adoption, his company built several charging points across Tashkent and surrounding regions and offered free charging services for two years. Today, hundreds of charging stations operate throughout the country, helping EVs become more accessible.

Despite the progress, Uzbekistan faces challenges in meeting its ambitious climate targets. By 2030, the country aims to reduce its emissions per unit of GDP by one-third from 2010 levels. While increasing the number of EVs on the road is a crucial step, it will not be enough on its own. The electricity grid that powers these vehicles is still primarily fueled by natural gas, a fossil fuel. In 2021, over 80% of the nation’s electricity came from gas, which significantly contributes to global warming.

Uzbekistan is actively investing in renewable energy to address this issue. Over the past five years, the country has boosted its renewable energy mix from 12% to 20%, with growing interest in hydropower and solar technology. David Knight, the World Bank’s lead country economist for Central Asia, emphasized that improving energy efficiency and reducing emissions are critical for Uzbekistan as its economy rapidly expands.

For now, demand for EVs remains strong, and Megawatt Motors is expanding its operations by training salespeople to cater to this burgeoning market. Abdullaev believes that Uzbekistan’s established automobile industry, which began in 1995, provides a solid foundation for producing homegrown electric vehicles in the near future. With the country’s green energy transition in full swing, Abdullaev is optimistic: “Anything is possible.”