Tajikistan And Uzbekistan Agreed On Supply Of Electricity With Rogun Hydroelectric Power Station

Tajikistan and Uzbekistan have reached an agreement on the supply of electricity generated by the Rogun hydroelectric power station as part of a new cooperation agreement in the energy sector. The draft document is approved by the Government of Tajikistan and published on the portal of legal information of the Ministry of Justice of the Republic.

According to the agreement, the volume and schedule of electricity supply will be agreed between the Rogun hydroelectric power station and the Uzbek side – Uzenergosotish JSC – depending on current demand, primarily during power deficiency in the power system of Uzbekistan.

The cost of 1 kW · h electricity is set at the level of 3.4 cents of the United States (taking into account VAT at the zero rate). The price is subject to annual indexation by one percent, starting from the second year of the agreement.

At the stage of construction of the Rogun hydroelectric power station, delivery will be carried out during the growing season – from April 1 to September 30. After the facility enters the full design capacity, energy cooperation will go into year -round mode.

Electricity delivery will be carried out according to interstate power lines on the terms of DAP according to international standards Incoterms 2010.

The text of the agreement also provides for the possibility of resolving possible disagreements through consultations and negotiations, as well as the mechanism for extending the validity of.

The agreement was signed for a period of 20 years with automatic extension for each subsequent 10 years, if the parties do not express objections at least six months before the expiration of the deadline.

The importance of the Rogun hydroelectric power station

Rogun hydroelectric power station is the largest energy project of Tajikistan, located on the Vakhsh River. The construction of the station launched in 1976, but due to the collapse of the USSR it was suspended.

The project resumed in 2016 became the priority of the country’s state energy policy.

Upon completion of the construction, the Rogun hydroelectric power station should become the most powerful hydroelectric power station in Central Asia with an installed capacity of 3,600 MW.

Tajikistan has already supplied electricity to Uzbekistan since 2018 as part of bilateral agreements that have been acting mainly in the growing season.

The new contract reflects the desire of the two countries to deepen energy integration within the framework of the general energy system of Central Asia and creates the basis for sustainable energy supply of the region.