Renewable Energy and Local Value Chains in Uzbekistan: Implications for Industrial Diversification

Abstract

Uzbekistan’s rapid expansion of renewable generation creates an opportunity that extends beyond adding new megawatts to the power system. The central economic question is whether investment in solar power, storage, and related grid infrastructure can also deepen domestic productive capacity. This article examines that question through a focused review of institutional and academic evidence on renewable-energy value chains. It considers solar photovoltaic projects and associated electricity infrastructure, paying particular attention to activities that Uzbek firms could realistically supply under competitive conditions. The analysis highlights civil works, installation, maintenance, selected electrical and structural components, and engineering services as areas that merit supplier-level assessment. More technologically intensive manufacturing, by contrast, requires separate scrutiny of scale, quality, technology access, and market competitiveness. Evidence from Uzbekistan on electricity-network losses and a financed solar-plus-storage project also shows that industrial benefits depend not only on generation assets but on reliable delivery and project execution. The article therefore proposes a staged policy sequence built around supplier diagnostics, certification and training, contract-related finance, and performance monitoring. It does not estimate causal effects on GDP, employment, or import substitution; instead, it identifies practical channels through which renewable investment could contribute to broader industrial diversification.

Keywords

renewable energy; local value chains; industrial diversification; domestic value added; Uzbekistan

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