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Hydropower

Kyrgyzstan Expands Small Hydropower to Tackle Rising Energy Deficit

Kyrgyzstan is accelerating its development of small hydropower plants as it seeks to close a widening electricity gap driven by surging demand and limited domestic generation capacity. On April 20, two new small hydroelectric power plants (HPPs) were commissioned in the country's northern Chui region. The Sokuluk-3 HPP has a capacity of 9.5 MW, while the Tuyuk HPP has a capacity of 5.9 MW. Combined, they are expected to generate between 60 million and 70 million kWh of electricity annually. Speaking at the launch ceremony, President Sadyr Japarov underscored the strategic importance of small-scale hydropower. “Such projects increase the resilience of the energy system and facilitate the gradual reduction of the energy deficit. Today, 48 small hydroelectric power plants with a total capacity of 180 MW are operating in Kyrgyzstan. They play a significant role in strengthening energy independence and reducing dependence on imports,” he said. The government is scaling up efforts in the sector, with 50 small HPPs currently under construction across the country. Of these, 13 are scheduled to be commissioned in 2026. Electricity demand in Kyrgyzstan continues to rise rapidly. In 2025, total consumption reached 19.3 billion kWh, up by 900 million kWh compared to the previous year. Domestic generation accounted for 15.4 billion kWh, while the remaining 3.9 billion kWh was covered through imports from Turkmenistan, Uzbekistan, Kazakhstan, and Russia. According to Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, electricity consumption has grown by more than 25% over the past five years, rising from 15.4 billion kWh in 2020. “If current electricity consumption rates continue, it could reach 25 billion kWh by 2030,” Torobayev said. The surge in demand has been driven by rapid housing construction and the launch of new industrial facilities. With Kyrgyzstan’s population now exceeding 7.4 million, the number of electricity consumers is expanding steadily. Over the past three years alone, 4,192 industrial facilities and 96,975 households have been connected to the national grid, according to the Energy Ministry. Despite the expansion of generation capacity, supply continues to lag behind demand, prompting authorities to prioritize small hydropower as a flexible and scalable solution to improve energy security and reduce reliance on imports.

Natural Gas

Turkmenistan Advances Galkynysh Gas Field Development to Increase Exports to China

Chinese Vice Premier Ding Xuexiang and Gurbanguly Berdymuhamedov, Tukmenistan's former President and the current Chairman of its highest representative body, the Halk Maslahaty, have launched the fourth phase of industrial development of the Galkynysh gas field in Mary region. Located about 400 km southeast of Ashgabat, the Galkynysh field has been producing natural gas since 2013 and is considered one of the world’s largest in terms of reserves. The British consulting firm GaffneyCline estimates the reserves of Galkynysh, together with the neighboring fields Garakol and Yashlar, at 27.4 trillion cubic meters of natural gas. On April 16, the State Concern Turkmengas and China’s CNPC Amudarya Petroleum Company Ltd. signed a contract for the turnkey construction of the fourth phase of the field’s development. The project includes the drilling of production wells and the construction of a gas processing facility with a capacity of 10 billion cubic meters of commercial gas per year. According to industry publication Nebit-Gaz, the Galkynysh field is being developed in phases. The first phase, which included the construction of three gas processing plants with a total capacity of 30 billion cubic meters per year, is currently operational. The second, third, and fourth phases are planned for the near future. Upon full development, the field’s gross annual production could reach nearly 200 billion cubic meters of natural gas. The Galkynysh field serves as the main resource base for Turkmen gas exports to China. China remains the largest buyer of Turkmen natural gas. Three lines (A, B, and C) of the Turkmenistan-China gas pipeline system currently deliver approximately 40 billion cubic meters of gas annually. With the planned commissioning of a fourth line (Line D), export volumes are expected to increase to around 65 billion cubic meters per year. The resource base of Galkynysh is a key factor in the planned construction of Line D, which is expected to significantly increase gas supplies to China. According to Guvanch Agajanov, Vice-Chairman of Turkmenistan's Cabinet of Ministers, total Turkmen gas exports to China have exceeded 462 billion cubic meters over the past 20 years. The Galkynysh field has also been designated as the resource base for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which is under construction and is expected to have a capacity of 33 billion cubic meters per year.

Automobile Industry

Kazakhstan’s Auto Industry Accelerates: Vehicle Output Up Nearly 37%

Vehicle production in Kazakhstan increased by 36.8% year-on-year in January-March 2026, according to data from the Kazakhstan Automobile Union (KAU). KAU reported that 45,260 units were produced in the first three months of the year, including passenger cars, trucks, trailers, and semi-trailers. In March alone, output reached 17,462 units, up 42.8% compared to the same month last year and 19.9% higher than in February. In value terms, total automotive output amounted to approximately $1.2 billion, representing a 27.5% increase year-on-year. The sector’s share of the overall machinery industry rose to 43.1%, up from 39.7% a year earlier. “Based on the results of the first three months, Kazakhstan’s auto industry is demonstrating steady growth,” said KAU President Anar Makasheva. “The continued strong performance in March confirms positive trends in the sector. Significant growth has also been recorded in the auto components segment: over three months, production of automotive parts and accessories reached 259.8 billion tenge, increasing fourfold compared to the same period last year. Manufacturers will continue to accelerate growth in this segment.” Passenger cars continue to account for the largest share of output. During the reporting period, 42,115 units were produced, up 37.9% year-on-year. Truck production reached 1,380 units (+16.7%), buses totaled 750 units (+73.2%), and trailers and semi-trailers reached 904 units (+21%). Output of special-purpose vehicles declined to 111 units. The Kostanay-based Allur plant remained the industry leader, producing 14,234 vehicles. Astana Motors Manufacturing Kazakhstan in Almaty produced 12,778 units, while Hyundai Trans Kazakhstan manufactured 10,755 vehicles. The Kia Qazaqstan plant produced 4,640 units. Other manufacturers include QazTehna (806 units), SemAZ (627 trucks), Hyundai Trans Almaty (196 units), Daewoo Bus Kazakhstan (148 units), and KAMAZ-Engineering (135 units). Among the most popular brands produced in Kazakhstan were Hyundai (10,725 vehicles), Chevrolet (8,341), Kia (5,084), Changan (4,102), Haval (4,099), Chery (3,744), Jetour (2,250), Geely Galaxy (1,388), JAC (979), and Tank (833). The increase in output continues last year’s trend, when Kazakhstan set a record by producing more than 171,000 vehicles in 2025.

Agriculture

Kazakhstan and China’s Snow Valley Agree to Build $100-200 Million Potato Processing Complex

The administration of Kazakhstan’s Pavlodar region has signed a memorandum of cooperation with China’s Snow Valley Agricultural Group Co. Ltd. to implement a major investment project focused on potato processing, regional authorities have announced. The document outlines plans to establish a modern agro-industrial complex with an annual processing capacity of between 100,000 and 200,000 tonnes. The agreement was signed by regional governor Asain Baikhanov and representatives of the Chinese side, Wang Dengshe and Zhang Fan. The project is aimed at producing high value-added products. It includes the construction of a research and breeding center for potato cultivation and seed production, the launch of French fries manufacturing, and the development of storage, logistics, and distribution infrastructure. Total investment is estimated at between $100 million and $200 million. Regional authorities expect the project to create a full production and supply chain, reduce the shortage of deep-processing capacity in agriculture, and generate new jobs. “The regional administration is ready to support initiatives aimed at creating high-tech, high value-added production,” Baikhanov said. Founded in 2007 in Zhangjiakou, China, Snow Valley is a vertically integrated agro-industrial holding covering the entire production cycle from potato breeding and cultivation to deep processing. The company processes more than 800,000 tonnes of raw materials annually, including over 400,000 tonnes of frozen products. Its total storage capacity reaches 700,000 tonnes. The company is also engaged in breeding programs and has developed more than 80 potato varieties. Its production utilizes advanced technologies, including pulsed electric field (PEF) systems, which improve product quality and reduce oil consumption. Snow Valley exports its products to more than 40 countries. Following the visit, Chairman Wang Dengshe highlighted the strong potential of Pavlodar region and confirmed the company’s interest in long-term cooperation. “The Chinese company has confirmed its readiness to implement the project using modern technologies and local resources, while the regional administration has pledged comprehensive support, including infrastructure development, provision of resource bases, and administrative assistance,” the regional press service said. The project comes amid previous restrictions on potato exports. Kazakhstan earlier introduced a temporary ban on shipments outside the Eurasian Economic Union (EAEU) due to rising domestic prices. In autumn 2025, authorities also did not rule out reinstating such measures, although the market currently remains stable.

Foreign Investment

Kazakhstan Finance Day in New York Showcases Market Reform, IPO Ambitions, and Alatau City Pitch

At Kazakhstan Finance Day in New York, officials and executives used the panel “Investment Opportunities in Kazakhstan” to present the country as entering a new phase of market development, citing macroeconomic stability, capital-market reform, potential initial and secondary public offerings, and infrastructure tied to the Alatau City project. The panel session was held at Citigroup headquarters in Manhattan and was moderated by Stephanie von Friedeburg, global head of Citi’s Public Sector Group. Speakers included Timur Suleimenov, governor of the National Bank of Kazakhstan; Adil Mukhamejanov, chairperson of the management board of the Kazakhstan Stock Exchange (KASE); Zhandos Shaikhy, deputy chairman of the management board of Baiterek National Managing Holding; Aidar Ryskulov, managing director for economics and finance at Samruk-Kazyna; and Bayan Konirbayev, deputy CEO and chief digital officer of the Alatau City Authority. Opening the event, von Friedeburg noted that the forum’s return to Citigroup headquarters for a third time reflected the continued engagement between Kazakhstan and U.S. investors. Kazakhstan’s ambassador to the United States, Magzhan Ilyassov, linked the event to growth in bilateral economic ties, citing more than $17 billion in commercial agreements signed during President Kassym-Jomart Tokayev’s November 2025 visit to Washington, and adding that further agreements were under consideration. The first financial presentation came from Suleimenov, who reported that Kazakhstan’s economy grew 6.5% in 2025, inflation had eased to 11%, and the National Bank remained committed to returning inflation to its 5% target. He framed the country’s investment case around tighter macroeconomic coordination, fiscal discipline, and financial-sector development. “We’re also exploring the development of a national crypto reserve framework, where digital assets will gradually be accumulated and managed as part of a sovereign reserve diversification strategy,” Suleimenov explained. He also pointed to continued work on the digital tenge and national digital financial infrastructure. Suleimenov connected that financial agenda to the investment case, arguing that Kazakhstan was reducing its structural dependence on oil revenue and moving ahead with legal and tax changes aimed at improving the investment climate. He described the Middle Corridor as increasingly important and called the route through Kazakhstan, the Caspian, and the Caucasus “the only viable, reliable route” between the East and West. [caption id="attachment_47460" align="aligncenter" width="1258"] Kazakhstan Finance Day in New York; image: K. Krombie[/caption] The discussion then moved to Samruk-Kazyna’s finances and privatization plans. Aidar Ryskulov put the fund’s assets under management at $88 billion and EBITDA at $10.8 billion. He indicated that the fund intended to remain active in international debt markets this year. Ryskulov stated that Samruk-Kazyna was targeting a public-market transaction this year, with London, Hong Kong, and Astana under consideration, although timing would depend on macroeconomic conditions. He later pointed to IPO plans for the national railway company, Kazakhstan Temir Zholy (KTZ). "Our capacity is roughly 55 million tons, and we’re going to double this capacity in five to seven years,” he said. Ryskulov also characterized Kazatomprom as “one of the best assets” and presented it as undervalued and a high-dividend company. Zhandos Shaikhy focused on Baiterek’s scale and...

Nuclear Power Plant

Kazakhstan Plans to Build at Least Three Nuclear Power Plants by 2050

Kazakhstan plans to build at least three nuclear power plants (NPPs) by 2050, with implementation of the first project already underway, the country’s Atomic Energy Agency has said. The nuclear energy development strategy aims to ensure energy security, support sustainable economic growth, and meet international climate commitments, while fostering high-tech industries and strengthening Kazakhstan’s position in the global nuclear sector. “According to the Strategy, by 2050, at least three nuclear power plants will be operating in the Republic of Kazakhstan. The first NPP project is already being implemented, construction of the second is under consideration, and for the third NPP, the potential use of small modular reactor technologies is being explored,” the agency said. In addition to plant construction, the strategy provides for the rational use of uranium resources, localization of equipment and nuclear fuel production, and the development of national industrial capacity. Particular attention is being given to advancing nuclear science and applied technologies, creating a modern scientific and technological base, and establishing a system for training qualified personnel. The document also outlines measures for the safe management of radioactive waste and spent nuclear fuel to minimize environmental risks. Plans include the introduction of digital solutions and ensuring a high level of information security at nuclear facilities. “The implementation of the Strategy will enable the creation of a modern and sustainable nuclear cluster in Kazakhstan, integrated into the global nuclear ecosystem,” the agency said. A Center of Competence for NPP construction will be established on the basis of Kazakhstan Nuclear Power Plants. This entity will serve as a project office, general contractor, and holder of state equity stakes in future plants. In the longer term, the country plans to create a specialized nuclear energy holding company that will unite project and operating organizations in the sector. According to expert estimates, construction of a single nuclear power plant will require up to 10,000 workers, including more than 3,000 technical specialists. “In this regard, active work is underway to update technical and vocational education programs,” the agency said. “Particular attention is being paid to training specialists such as turbine equipment operators, electricians, NPP equipment installers, and technicians responsible for plant operation and safety.” Programs for applied bachelor’s degrees in nuclear energy are also being developed, along with new specialties, including reactor equipment operators. The first plant will use Generation III+ reactors, which feature enhanced reliability and modern safety systems, including passive protection mechanisms capable of operating without human intervention or external power supply. According to the agency, the project incorporates international experience, including lessons learned from the Fukushima Daiichi nuclear accident in Japan, and includes measures to prevent radioactive releases even in severe emergencies. Contracts for the construction of the second and third NPPs have been awarded to China National Nuclear Corporation, while the first plant will be built by Russia’s state corporation Rosatom. The site for the first plant is located in the village of Ulken in the Almaty region, on the shores of Lake Balkhash, approximately 400 km northwest...