NEW DELHI — In a move that could redefine energy geopolitics in Central Asia, India and Uzbekistan have cemented a strategic partnership to accelerate renewable energy development, positioning both nations as pivotal players in the global transition away from fossil fuels. The collaboration, formalized during Uzbek President Shavkat Mirziyoyev’s state visit to India in January 2026, encompasses large-scale solar projects, green hydrogen production, and infrastructure modernization—marking one of the most ambitious clean energy initiatives in the region to date.
The agreements, signed under the watch of Prime Minister Narendra Modi and President Mirziyoyev, include a landmark deal between India’s National Thermal Power Corporation (NTPC) and Uzbekistan’s Ministry of Energy to develop a 500-megawatt solar power plant in the Navoi region. Once operational by 2028, the project will rank among Central Asia’s largest solar installations, capable of powering over 300,000 households annually. Beyond solar, Indian firms ReNew Power and Adani Green Energy are in advanced negotiations to invest in Uzbekistan’s nascent green hydrogen sector, leveraging the country’s vast solar and wind resources to produce low-carbon fuel for domestic use and export.
The partnership extends beyond infrastructure, with both nations establishing a joint working group to streamline technology transfer, policy alignment, and capacity building. The group will also facilitate Indian participation in Uzbekistan’s upcoming renewable energy auctions, which are expected to attract billions in foreign investment. For India, the collaboration aligns with its pledge to achieve 500 gigawatts of non-fossil fuel energy capacity by 2030, while Uzbekistan aims to generate 30% of its electricity from renewables by the same year.
What Happened: A Breakdown of the Agreements
The January 2026 summit yielded three key agreements that form the backbone of the India-Uzbekistan renewable energy alliance:
1. Solar Power Expansion: The NTPC-Ministry of Energy deal for the 500-megawatt Navoi solar project is the centerpiece of the partnership. The plant, to be built on 1,200 hectares of desert land, will utilize bifacial solar panels—technology that captures sunlight on both sides—to maximize efficiency in Uzbekistan’s high-irradiance environment. The project is expected to offset approximately 600,000 tons of carbon dioxide annually, equivalent to removing 130,000 cars from the road each year. Construction is slated to begin in late 2026, with financing secured through a mix of Indian government-backed loans and private investment.
2. Green Hydrogen Collaboration: Uzbekistan’s Ministry of Energy and India’s Ministry of New and Renewable Energy signed an MoU to explore joint ventures in green hydrogen production. The agreement targets the development of a 1-gigawatt electrolyzer capacity by 2030, with Indian firms ReNew Power and Adani Green Energy leading feasibility studies. Uzbekistan’s potential as a green hydrogen hub stems from its solar irradiance levels—among the highest in the world at 1,800–2,200 kilowatt-hours per square meter annually—and its strategic location between Europe and Asia. The country’s government has identified three pilot sites in the Kyzylkum Desert for initial projects, with plans to scale production for export to markets in the European Union and South Korea.
3. Grid Modernization and Policy Alignment: A third agreement establishes a bilateral working group to address Uzbekistan’s outdated grid infrastructure, a critical bottleneck for renewable energy integration. The group will focus on upgrading transmission lines, implementing smart grid technologies, and harmonizing regulatory frameworks to attract private investment. India’s experience in scaling renewable energy—particularly its success in reducing solar tariffs to record lows—will be shared through training programs for Uzbek engineers and policymakers. The working group will also coordinate on carbon pricing mechanisms and renewable energy certification standards to ensure compliance with international climate commitments.
Why It Matters: Geopolitical, Economic, and Environmental Implications
The India-Uzbekistan partnership carries significance far beyond bilateral relations, with implications for regional energy security, climate diplomacy, and the global race for clean energy dominance.
1. Redrawing Central Asia’s Energy Map: For decades, Central Asia’s energy sector has been dominated by fossil fuel exports, particularly natural gas from Turkmenistan and Kazakhstan. Uzbekistan, despite its vast renewable potential, has lagged behind due to underinvestment and Soviet-era infrastructure. The India-backed projects could catalyze a shift toward renewables, reducing the region’s reliance on hydrocarbon revenues and positioning Uzbekistan as a leader in Central Asia’s energy transition. The Navoi solar project alone could displace 1.5 billion cubic meters of natural gas consumption annually, freeing up resources for export or domestic industrial use.
2. India’s Strategic Pivot to Central Asia: The partnership aligns with India’s “Act East” policy, which seeks to deepen economic and security ties with countries along its extended eastern and central Asian periphery. By investing in Uzbekistan’s renewable energy sector, India is securing a foothold in a region traditionally dominated by Russia and China. The move also diversifies India’s energy import sources, reducing its dependence on Middle Eastern oil and gas. Analysts note that India’s involvement in Uzbekistan’s green hydrogen sector could provide a template for similar collaborations with other Central Asian nations, including Kazakhstan and Turkmenistan, both of which have expressed interest in renewable energy partnerships.
3. Climate Leadership and the Paris Agreement: Both India and Uzbekistan are signatories to the Paris Agreement, with India committing to a 45% reduction in emissions intensity by 2030 and Uzbekistan targeting a 35% cut in greenhouse gas emissions by 2030 compared to 1990 levels. The renewable energy projects will directly contribute to these goals, with the Navoi solar plant expected to reduce Uzbekistan’s carbon emissions by 0.5% annually. The green hydrogen collaboration is particularly significant, as hydrogen is projected to account for 12% of global energy demand by 2050, according to the International Energy Agency (IEA). Uzbekistan’s potential to produce low-cost green hydrogen—estimated at $1.50–$2.00 per kilogram by 2030—could make it a key supplier to Europe, which is seeking to reduce its dependence on Russian energy.
4. Economic Diversification for Uzbekistan: Uzbekistan’s economy has long been reliant on natural gas exports, which account for 20% of government revenue. The renewable energy push is part of President Mirziyoyev’s broader economic reform agenda, which aims to attract $100 billion in foreign investment by 2030. The India partnership is expected to create over 10,000 jobs in Uzbekistan’s solar and hydrogen sectors, while also fostering local manufacturing of solar panels and electrolyzers. The Uzbek government has set a target of $12 billion in renewable energy investments by 2030, with India positioned to capture a significant share of this market.
Background and Context: How the Partnership Took Shape
The India-Uzbekistan renewable energy alliance did not emerge in a vacuum. It builds on a decade of diplomatic engagement, economic cooperation, and shared climate ambitions.
1. Diplomatic Foundations: India and Uzbekistan established diplomatic relations in 1992, following Uzbekistan’s independence from the Soviet Union. Bilateral trade has grown steadily, reaching $442 million in 2023, with India exporting pharmaceuticals, machinery, and IT services, and importing cotton, fertilizers, and precious metals. The two nations elevated their relationship to a “strategic partnership” in 2019, with energy cooperation identified as a key pillar. High-level visits, including Prime Minister Modi’s trip to Tashkent in 2016 and President Mirziyoyev’s reciprocal visit in 2019, laid the groundwork for the current renewable energy initiatives.
2. India’s Renewable Energy Ambitions: India’s push into Uzbekistan’s renewable energy sector is part of its broader strategy to become a global leader in clean energy. The country has set a target of 500 gigawatts of non-fossil fuel energy capacity by 2030, up from 179 gigawatts in 2023. Solar energy has been the cornerstone of this effort, with India’s installed solar capacity growing from 2.6 gigawatts in 2014 to over 70 gigawatts in 2026. The government’s Production-Linked Incentive (PLI) scheme, which offers subsidies for domestic manufacturing of solar panels and batteries, has further accelerated growth. India’s success in reducing solar tariffs to as low as ₹2.44 ($0.03) per kilowatt-hour—among the lowest in the world—has made it an attractive partner for countries seeking to scale renewable energy.
3. Uzbekistan’s Energy Transition: Uzbekistan’s renewable energy journey has been slower but is gaining momentum. The country’s first large-scale solar project, a 100-megawatt plant in Navoi, was commissioned in 2021 with support from the Asian Development Bank (ADB) and the French development agency AFD. Since then, Uzbekistan has held multiple renewable energy auctions, attracting bids from international firms such as Masdar (UAE) and ACWA Power (Saudi Arabia). The government’s 2030 renewable energy target—30% of electricity generation from solar, wind, and hydropower—requires an estimated $30 billion in investment. India’s involvement is seen as a way to accelerate this transition while reducing reliance on Russian and Chinese financing.
4. Green Hydrogen: The Next Frontier: Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable electricity, has emerged as a critical component of the global energy transition. The IEA estimates that global hydrogen demand could reach 530 million tons by 2050, with green hydrogen accounting for 60% of production. Uzbekistan’s potential in this sector is immense, given its solar and wind resources, but the country lacks the technology and capital to scale production. India, which has set a target of producing 5 million tons of green hydrogen annually by 2030, sees Uzbekistan as a strategic partner to achieve this goal. The two nations are exploring a “hydrogen corridor” that would link Uzbekistan’s production hubs to Indian markets via Afghanistan and Iran, though geopolitical risks remain a concern.
Competing Claims and Uncertainty: Challenges Ahead
While the India-Uzbekistan partnership has been hailed as a model for South-South cooperation, several challenges could derail its success.
1. Grid Infrastructure Bottlenecks: Uzbekistan’s electricity grid, built during the Soviet era, is ill-equipped to handle large-scale renewable energy integration. The country’s transmission and distribution losses stand at 12%, compared to the global average of 8%, according to the World Bank. The joint working group’s efforts to modernize the grid will be critical, but progress has been slow due to bureaucratic delays and funding constraints. Without significant upgrades, the Navoi solar project and other renewable installations could face curtailment—where excess power is wasted due to grid limitations.
2. Regulatory and Policy Risks: Uzbekistan’s renewable energy sector is still in its infancy, and regulatory frameworks remain underdeveloped. The country’s first renewable energy law, passed in 2019, lacks clarity on land acquisition, tariff structures, and dispute resolution. Foreign investors have raised concerns about the lack of transparency in project bidding processes and the dominance of state-owned enterprises in the energy sector. The joint working group aims to address these issues, but meaningful reform will require political will and sustained engagement from both governments.
3. Geopolitical and Security Risks: Central Asia’s strategic location makes it a battleground for influence among major powers, including Russia, China, and the United States. Russia, which has historically dominated the region’s energy sector, may view India’s growing presence as a threat to its interests. China, meanwhile, has invested heavily in Uzbekistan’s infrastructure through its Belt and Road Initiative (BRI), and could seek
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