Business & Economy - The Times Of Central Asia

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Solar Energy

Asian Development Bank Awards $1 Million Grant to Support Floating Solar Energy in Tajikistan

The Asian Development Bank (ADB) has approved a $1 million grant to support the development of floating solar photovoltaic (PV) systems in Tajikistan, an emerging technology for the mountainous Central Asian country. According to Ko Sakamoto, ADB’s Country Director in Tajikistan, the initiative leverages the nation’s abundant solar and water resources. “This innovative initiative aims to make the most of what Tajikistan has to offer: sun and water,” he said. The project is designed to establish the foundation for a year-round, reliable, and environmentally sustainable energy supply. With 93% of its territory covered by mountains, Tajikistan faces limited availability of flat land, most of which is allocated for agriculture or housing. These conditions make the construction of ground-mounted solar power facilities prohibitively expensive. However, the country’s extensive network of reservoirs, with high solar exposure and pre-existing infrastructure, offers a viable alternative. Floating solar systems are being explored as a cost-effective and land-efficient solution to expand renewable energy output without displacing essential land uses. Under the ADB grant, technical experts will assess up to five reservoirs to evaluate their suitability for floating PV installation. The results will inform a detailed feasibility study for the construction of a large-scale floating solar plant at one selected site. The grant will also fund the modernization of the financial management system of Barki Tojik, the state-owned energy company. This component aims to improve the company's operational efficiency and financial transparency. Tajikistan has recently accelerated its shift toward clean energy. As previously reported by The Times of Central Asia, the country has launched its most ambitious solar energy initiative to date: the construction of two photovoltaic plants with a combined capacity of 500 megawatts. The scale of this project marks a strategic pivot toward energy diversification and sustainability.

Export

Kazakhstan Targets Top Three Global Rank in Sunflower Oil Exports by 2028

Kazakhstan is aiming to become one of the world’s top three exporters of sunflower oil and raise its total exports of oil and fat products to $1 billion by 2028, according to the Ministry of Trade and Integration. Russia remains the global leader in sunflower oil exports, having shipped 4.4 million tons last year. In comparison, Kazakhstan achieved record results in 2025, exporting over 523,400 tons of sunflower oil between January and October, 2.4 times more than its domestic sales. These exports generated $532 million in revenue, placing Kazakhstan among the top ten sunflower oil exporters globally. To further increase output and climb into the top three, the government is shifting from fragmented support measures to a coordinated industry strategy, focused on building integrated export chains. The first meeting of the Export Headquarters for the Promotion of Non-Resource Exports in 2026 was held yesterday in Astana, chaired by Vice Minister of Trade and Integration Aidar Abildabekov. Officials discussed new strategies for expanding agricultural exports and overcoming systemic barriers faced by domestic producers in foreign markets. In 2025, a roadmap for the development of the oil and fat industry for 2026–2028 was finalized. It included an assessment of over 30 enterprises engaged in oilseed cultivation and processing in the northern, eastern, and southeastern regions, including the Abai, East Kazakhstan, Akmola, Zhetysu, and Almaty regions. The roadmap outlines concrete targets to improve processing capacity utilization, broaden export destinations, and position Kazakhstan among the top three global sunflower oil exporters by 2028. Key challenges addressed include rail cargo prioritization, phytosanitary and veterinary controls, registration of Kazakh firms in Chinese trade registries, reimbursement of export costs, and access to financial instruments for state support. Yadykar Ibragimov, a representative of the National Association of Oilseed Processors, emphasized that the roadmap provides a strategic foundation for industry growth. As previously reported by The Times of Central Asia, Kazakhstan significantly increased its sunflower oil exports to Afghanistan as early as 2023.

Trade

Uzbekistan Signals Possible Retaliation Over Increased Trade Costs in Tajikistan

Uzbekistan may introduce reciprocal measures in response to trade barriers impacting its exports to Tajikistan, Deputy Prime Minister Jamshid Khodjaev announced on January 17 during a meeting of entrepreneurs, ambassadors, and government officials in Tashkent. Khodjaev highlighted challenges faced by Uzbek exporters, particularly in the construction materials sector, despite full compliance with required documentation. “We have problems related to Tajikistan. We export products to this market, but even when all documents are complete, our goods are cleared under a so-called ‘reserve’ procedure,” he said. “As a result, the price of our products in that market rises by about 15%.” Meeting participants reported that additional charges imposed at Tajik customs are inflating the cost of Uzbek construction materials and reducing competitiveness. Khodjaev warned that if such restrictions are not lifted, Uzbekistan may respond with similar trade measures. The issue was also raised by representatives of German construction materials giant Knauf. The company’s commercial director noted that exporters face similar obstacles not only in Tajikistan but also in Turkmenistan and parts of the Caucasus region. In Tajikistan’s case, the “reserve” customs clearance procedure was cited as a key driver of increased costs. “This is pushing the price of our products in the Tajik market up by as much as 15%,” the representative said. Entrepreneurs stated that combined logistics and customs costs for shipments to Tajikistan have surged from approximately $2,000 to $12,000. Despite multiple appeals to Tajik authorities, they said no resolution has been achieved, and the elevated costs are undermining export volumes. “If they impose duties, we can do the same,” Khodjaev stated. “Our customs officials will talk to their counterparts. If this practice continues, we will take response measures. Our ambassador should clearly convey this signal.” Despite the ongoing friction, trade between Uzbekistan and Tajikistan surpassed $700 million in 2024, nearly three times higher than in previous years. Both governments have indicated they are exploring new logistics corridors and simplified customs procedures to deepen bilateral economic ties.

Data Center

Kazakhstan Plans ‘Data Center Valley’ in Pavlodar Powered by Coal Energy

Kazakhstan intends to establish a major data center hub in the Pavlodar region, powered by the coal-rich Ekibastuz basin. The announcement was made by President Kassym-Jomart Tokayev during a meeting of the National Kurultai (Assembly), where he outlined key steps in the country’s digital and energy strategies. The initiative is part of Kazakhstan’s broader goal to develop a fully-fledged digital economy by 2029. As Tokayev noted, 2026 has been declared the Year of Digitalization and Artificial Intelligence. In line with this vision, the government recently established the Ministry of Artificial Intelligence and Digital Development to oversee technological transformation. “The introduction of digital solutions and AI technologies will improve the quality of public administration and industrial efficiency. But these plans require robust and sustainable energy infrastructure,” Tokayev stated. He stressed the need to designate zones in advance for the construction of high-capacity data centers, complete with energy, cooling, and security systems. The proposed “data center valley,” developed in cooperation with the Pavlodar regional akimat, is expected to be powered by the Ekibastuz coal basin, one of the largest in the country. Tokayev emphasized that Kazakhstan must not delay the commissioning of new energy infrastructure and should not rely solely on nuclear power. The country’s first nuclear plant, currently in planning with Russia’s Rosatom, is not scheduled to come online until 2035. He compared data centers to metallurgical plants in terms of electricity demand, underscoring that energy self-sufficiency is becoming central to Kazakhstan’s economic strategy. The country’s current electricity output of 123.1 billion kWh is insufficient to support both its industrial and digital development targets. Kazakhstan holds an estimated 33 billion tons of coal reserves, enough to last 300 years at present consumption levels. Tokayev called for coal to be treated as a strategic resource, with the application of modern environmental technologies to reduce its environmental impact. The president instructed the government to present a proposal by March 20 to grant coal generation the status of a national project. Planned energy infrastructure projects include new coal-fired thermal plants in Kokshetau, Semey, and Oskemen, the commissioning of a plant in Kurchatov, and the expansion of GRES-2 and construction of GRES-3 in Ekibastuz. Simultaneously, the government aims to speed up the deployment of balancing capacities, particularly gas-based generation. However, Tokayev also warned of a worsening gas deficit: in 2024, Kazakhstan’s commercial gas imports surged by 18%, reaching 4.5 billion cubic meters. As previously reported by The Times of Central Asia, the Ministry of Energy plans to eliminate the country’s electricity shortfall and begin energy exports by 2027.

Gold

Canadian Silvercorp to Develop Major Gold Deposits in Kyrgyzstan

A Canadian mining company is set to develop two of the largest undeveloped gold deposits in western Kyrgyzstan’s Tien Shan gold belt. Silvercorp Metals Inc., a diversified producer of silver, gold, lead, and zinc, announced it has signed a Share Purchase Agreement with Chaarat Gold Holdings Limited, along with a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic. Under the agreements, Silvercorp will acquire a 70% stake in Chaarat ZAAV CJSC for $162 million. Chaarat ZAAV holds the mining license for the fully permitted Tulkubash and Kyzyltash gold deposits, covering approximately 7 square kilometers, as well as exploration licenses spanning an additional 27.42 square kilometers, which include the Karator and Ishakuld gold zones. Silvercorp has also signed a Share Purchase and Shareholders Agreement with Kyrgyzaltyn, the state-owned gold company. Upon completion, ZAAV will become a joint venture between Silvercorp and Kyrgyzaltyn, with the Canadian firm maintaining a 70% stake and serving as the operator. As part of the deal, the Kyrgyz government will waive its pre-emptive rights and extend the mining license through June 25, 2062, enhancing long-term investment stability. Located about 490 kilometers southwest of Bishkek, the Tulkubash and Kyzyltash projects will be developed in two phases. Phase One (2026-2028) will focus on the Tulkubash deposit. Silvercorp plans to invest around $150 million to construct an open-pit mine with a processing capacity of 4 million tons of ore annually. Commercial production is expected between 2027 and 2028, with annual output estimated at 110,000 ounces of gold over an initial mine life of three to four years. If the Karator exploration license is converted to a mining license in 2026, this phase could be extended by at least two more years. Phase Two (2028-2031) will develop the Kyzyltash sulfide deposit. This stage is expected to require about $400 million in investment and will include both open-pit and underground operations with a capacity of 3-4 million tons per year. Once fully operational from 2031, Kyzyltash is projected to produce between 190,000 and 230,000 ounces of gold annually for more than 18 years. The antimony-gold mineralization at the site was first discovered by Soviet geologists in the 1970s. Since 2002, Chaarat Gold has invested approximately $174 million in exploration, technical studies, and infrastructure, including roads, camps, and support facilities. Silvercorp becomes the second Canadian mining firm to operate in Kyrgyzstan, following Centerra Gold’s development of the Kumtor mine in the Issyk-Kul region. Kumtor was nationalized in 2021, and in August 2022, Kumtor Gold Company was designated a 100% state-owned enterprise. At a ceremony marking the launch of underground mining at Kumtor in August 2025, President Sadyr Japarov stated that Kyrgyzstan had received only $100 million in dividends during 28 years of foreign management, compared to $441 million paid to the state in the three years following nationalization. The Silvercorp transaction marks one of the largest foreign mining investments in Kyrgyzstan since the Kumtor nationalization and is seen as a key test of the country’s ability to...

Power Deficit

Kyrgyzstan to Continue Electricity Imports in 2026 to Cover Power Deficit

Kyrgyzstan’s Cabinet of Ministers has confirmed that the country will continue importing electricity in 2026 to compensate for a persistent shortfall in domestic power generation, Deputy Energy Minister Altynbek Rysbekov said during a meeting of a parliamentary committee. According to Rysbekov, Kyrgyzstan currently produces around 14.5 billion kilowatt-hours of electricity per year, while overall demand exceeds domestic supply by approximately 4.5 billion kilowatt-hours. To bridge the gap, the country imported about 4.3 billion kilowatt-hours of electricity in 2025, and officials expect similar volumes will be required next year. Rysbekov said electricity imports remain necessary to meet consumption needs, particularly during periods of peak demand. Electricity is sold to households at a socially regulated tariff that does not fully reflect production and import costs, with the difference absorbed by the national power company, NENK, placing a continued strain on the utility’s finances. The deputy minister acknowledged that reliance on imported electricity reflects deeper structural challenges in Kyrgyzstan’s energy sector. The country remains heavily dependent on hydropower, with the Toktogul Hydroelectric Power Station alone supplying about 40% of the country’s electricity, leaving generation vulnerable to fluctuating water levels at major reservoirs. Reduced inflows and steadily rising domestic consumption have contributed to recurring electricity shortages in recent years. Officials said the government’s medium- and long-term strategy is aimed at reducing dependence on electricity imports by expanding domestic generation capacity and diversifying energy sources. Rysbekov noted that efforts are underway to attract investment into renewable energy projects, including wind and solar power, alongside upgrades to existing infrastructure. The Energy Ministry has previously said that increasing non-hydropower generation is essential to improving energy security and reducing seasonal risks, particularly during dry years. However, officials have cautioned that new capacity will take time to come online, making electricity imports unavoidable in the near term. Kyrgyzstan has relied on electricity imports from neighboring countries during periods of deficit for much of the past decade, a pattern authorities say will continue until long-standing imbalances between supply and demand in the energy sector are addressed.