China’s Shandong Electrical Engineering & Equipment Group is set to modernise two electrical substations in Tashkent under a deal aimed at improving the reliability of Uzbekistan’s power grid.

The agreement signed between the state-owned National Electric Networks of Uzbekistan and Shandong covers the design, supply, and installation of new switchgear technology at the 220-kV Zafar and Fayziobod substations. 

The project, according to the Ministry of Energy, will see both sites transformed into modern SF6-insulated switchgear substations.

The project will be implemented on an engineering, procurement and construction (EPC) basis.

The transition to SF6-insulated switchgear is expected to improve operational efficiency and safety, while reducing environmental and climate-related risks. 

The new technology will help minimise human error, improve protection for maintenance personnel and ensure more reliable substation performance under varying weather conditions.

Additional objectives of the upgrade include reducing the environmental footprint of the substations, improving their visual design and introducing equipment based on advanced technologies to optimise overall performance.

China continues to be Uzbekistan’s top trade and investment partner, making up 17.2% of total trade turnover. Bilateral trade reached $5.4bn in the first half of 2025, rising from $5.06bn in 2024 and $4.56bn in 2023. 

Over the past five years, annual trade has doubled to $13bn in 2024, while Chinese direct investment has grown fivefold since 2017. 

Currently, around 3,700 Chinese-backed enterprises operate in Uzbekistan.