Publication Details
Abstract
The rapid decline in solar photovoltaic (PV) technology costs — by 89% between 2010 and 2023 — combined with rising electricity tariffs has created a transformative economic opportunity for industrial enterprises in sun-rich developing economies. However, widespread industrial PV adoption in Uzbekistan remains constrained by high upfront capital requirements, financing barriers, and the absence of a comprehensive policy support framework. This study investigates mechanisms for improving the economic efficiency of solar PV implementation in industrial enterprises, with Uzbekistan as the primary case study. Employing a multi-scenario financial modelling approach across four financing configurations, we assess Net Present Value (NPV), Internal Rate of Return (IRR), Levelized Cost of Energy (LCOE), and Payback Period (PBP) for a representative 1 MW industrial rooftop PV system. Our analysis demonstrates that Uzbekistan reached grid parity in 2023 — the point at which solar LCOE equals the industrial electricity tariff — and that appropriately structured support mechanisms can reduce the payback period from 9.2 to 4.1 years while increasing NPV by 2.3-fold. We propose a novel Multi-Dimensional Efficiency Enhancement (MDEE) framework integrating financial incentives, institutional reform, technical optimisation, and a composite scoring model for project prioritisation. The findings offer actionable policy recommendations for Central Asian and similarly positioned economies pursuing industrial decarbonisation.