Tel: +998977838464

2026
III International Bioeconomy Forum: Special Issue

V-SEKSIYA - SIRKULYAR IQTISODIYOT VA QAYTA TIKLANUVCHI ENERGIYA MANBALARINI INTEGRATSIYALASH IMKONIYATLARINI OSHIRISH

IMPROVING MECHANISMS FOR ATTRACTING INVESTMENT IN RENEWABLE ENERGY PROJECTS AT INDUSTRIAL ENTERPRISES

DOI 10.67668/mj/2026issmaxsus/2075 Pages 179-190

Published 2026-09-25

Authors
Makhmudov Mukhtorjon Abdumalik ugli
Affiliation
University of Business and Science image/svg+xml
III Bioiqtisodiyot xalqaro forumi, Buxoro, 24-25-sentabr 2026
PDF Google Scholar Google Scholar

Abstract

The article examined mechanisms for attracting investment in on-site renewable energy projects of industrial enterprises. The author synthesised risk-return theory and the concepts of the cost of capital and de-risking, and interpreted corporate power purchase agreements, the sale of surplus electricity to the grid, green loans, green bonds, energy performance contracts and blended finance involving development finance institutions as a single system. Using the levelised cost of electricity formula, the author found that an increase in the weighted average cost of capital from 4 to 20 percent raised the levelised cost of solar electricity 2.7 times. The results showed that institutional measures lowering the cost of capital were the decisive factor of project efficiency. The financial and legal instruments created in Uzbekistan for industrial enterprises were systematised. A conceptual model was developed and proposals for attracting investment were substantiated. The results can be used by industrial enterprises, commercial banks and public authorities in setting the terms of financing for renewable energy projects.

Keywords

renewable energy, industrial enterprises, investment, cost of capital, levelised cost of electricity, green finance, corporate PPA, de-risking

References

  1. Central Bank of the Republic of Uzbekistan. (2026, September 16). The Central Bank Board decided at its meeting on 16 September 2026 to keep the policy rate at 14 percent per annum. https://cbu.uz/en/monetary-policy/publications/press-releases/4540138/
  2. Central Bank of the Republic of Uzbekistan. (2026). Official exchange rates of foreign currencies against the soum (30 September 2026). https://cbu.uz/en/arkhiv-kursov-valyut/
  3. Egli, F., Steffen, B., & Schmidt, T. S. (2018). A dynamic analysis of financing conditions for renewable energy technologies. Nature Energy, 3(12), 1084–1092. https://doi.org/10.1038/s41560-018-0277-y
  4. European Bank for Reconstruction and Development. (2025, December 29). EBRD supports green lending in Uzbekistan. https://www.ebrd.com/home/news-and-events/news/2025/ebrd-supports-green-lending-in-uzbekistan.html
  5. Flammer, C. (2021). Corporate green bonds. Journal of Financial Economics, 142(2), 499–516. https://doi.org/10.1016/j.jfineco.2021.01.010
  6. International Finance Corporation. (2020). Pioneering solar power plant to take off in Uzbekistan with World Bank Group support [Press release]. https://www.ifc.org/en/pressroom/2020/pioneering-solar-power-plant-to-take-off-in-uzbekistan-with-world-bank-group-support
  7. IRENA. (2025). Renewable Power Generation Costs in 2024. Abu Dhabi: International Renewable Energy Agency. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2025/Jul/IRENA_TEC_RPGC_in_2024_Summary_2025.pdf
  8. IRENA. (2026a). Renewable Capacity Statistics 2026. Abu Dhabi: International Renewable Energy Agency. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2026/Mar/IRENA_DAT_RE_capacity_statistics_2026.pdf
  9. IRENA. (2026b). Renewable Power Generation Costs in 2025. Annex I: Cost Metric Methodology. Abu Dhabi: International Renewable Energy Agency. https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2026/Jul/IRENA_TEC_RPGC_in_2025_Annex_2026.pdf
  10. Mazzucato, M., & Semieniuk, G. (2018). Financing renewable energy: Who is financing what and why it matters. Technological Forecasting and Social Change, 127, 8–22. https://doi.org/10.1016/j.techfore.2017.05.021
  11. Polzin, F., Egli, F., Steffen, B., & Schmidt, T. S. (2019). How do policies mobilize private finance for renewable energy? A systematic review with an investor perspective. Applied Energy, 236, 1249–1268. https://doi.org/10.1016/j.apenergy.2018.11.098
  12. Schmidt, T. S. (2014). Low-carbon investment risks and de-risking. Nature Climate Change, 4(4), 237–239. https://doi.org/10.1038/nclimate2112
  13. Spot.uz. (2026, September 27). Uzbekistan to cut daytime electricity tariffs for businesses but raise night-time rates. https://www.spot.uz/en/2026/09/27/energy-tariff-shift
  14. United Nations Development Programme. (2023). Uzbekistan issues first ever green sovereign Eurobonds worth 4.25 trillion UZS on the London Stock Exchange. https://www.undp.org/uzbekistan/press-releases/uzbekistan-issues-first-ever-green-sovereign-eurobonds-worth-425-trillion-uzs-london-stock-exchange
  15. Vine, E. (2005). An international survey of the energy service company (ESCO) industry. Energy Policy, 33(5), 691–704. https://doi.org/10.1016/j.enpol.2003.09.014
  16. Wüstenhagen, R., & Menichetti, E. (2012). Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research. Energy Policy, 40, 1–10. https://doi.org/10.1016/j.enpol.2011.06.050
  17. Law of the Republic of Uzbekistan No. ORQ-539 of May 21, 2019 “On the use of renewable energy sources”. https://lex.uz/docs/-4346831
  18. Decree of the President of the Republic of Uzbekistan No. PF-220 of September 9, 2022 “On additional measures for the introduction of energy-saving technologies and the development of low-capacity renewable energy sources”. https://lex.uz/docs/-6189000
  19. Decree of the President of the Republic of Uzbekistan, от 16.02.2026 г. № DP-21 “On additional measures to consistently continue reforms and bring them to a new stage within the framework of priority directions of the countryʼs development until 2030” https://lex.uz/docs/8052981
  20. Resolution of the President of the Republic of Uzbekistan No. PQ-436 of December 2, 2022 “On measures to increase the effectiveness of reforms aimed at the transition of the Republic of Uzbekistan to a “green” economy until 2030”. https://lex.uz/docs/-6303230
  21. Resolution of the President of the Republic of Uzbekistan No. PQ-57 of February 16, 2023 “On measures to accelerate the introduction of renewable energy sources and energy-saving technologies in 2023”. https://lex.uz/uz/docs/-6385716

Downloads

Download data is not yet available.