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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.

Russia's War in Ukraine

Over 12,600 Central Asians Identified in Russian Army

A Ukrainian state initiative has identified nearly 13,000 citizens from Central Asia who have signed contracts with Russia’s Defense Ministry and have served or are serving in the Russian army, according to data released by the “I Want to Live” project as part of the Ukraine-Central Asia Inquiry. As of 2026, the project reports it holds personal data on 12,666 individuals from the region. Uzbekistan accounts for the largest share, with 4,853 identified citizens. Tajikistan ranks second with 3,407 individuals, followed by Kazakhstan with 2,389 and Kyrgyzstan with at least 1,439. Turkmenistan has the lowest figure, with 578 identified nationals. The figures represent a sharp increase compared to 2025, when the same project reported around 5,740 individuals from Central Asia. At that time, it also began publishing named lists of recruits from each country who had joined Russia’s war in Ukraine. The issue remains sensitive across the region. Uzbekistan and Kazakhstan prohibit their citizens from taking part in foreign conflicts, and several cases have been brought against individuals who returned after fighting abroad. Last year, speaking at the St. Petersburg International Legal Forum, Alexander Bastrykin, Chairman of the Investigative Committee of Russia, said authorities had identified 80,000 individuals who had avoided military registration. “We’ve registered them for military service, and about 20,000 of these ‘new’ Russian citizens, who for some reason no longer want to live in Uzbekistan, Tajikistan, or Kyrgyzstan, are now on the front lines,” he said at the time. His remarks highlighted ongoing efforts to replenish military ranks, including through contract-based recruitment and incentives. Observers say such measures, alongside migration trends, may help explain the rising number of Central Asian nationals identified in the conflict.

Solar Power

Kyrgyzstan to Construct Solar Power Plant with IFC Support

Kyrgyzstan is launching a pilot project to construct a solar power plant through a public-private partnership (PPP). The project is supported by the International Finance Corporation (IFC), which has prepared technical, legal, financial, and environmental assessments. The project’s implementation was discussed during a meeting in Washington, DC between Kyrgyz Energy Minister Taalaibek Ibrayev and John Gandolfo, Vice President and Chief Financial Officer at the IFC. A key feature of the project is the selection of an investor through an open tender based on the lowest electricity tariff bid. Kyrgyzstan has agreed to a tariff proposed by China Power of 4.1 cents per kWh. The power plant will be built in the Naryn region. Construction is scheduled to begin in 2026, with electricity generation expected to start in 2027. Ibrayev noted that the project introduces new standards to Kyrgyzstan’s energy sector and will serve as an example of attracting investment through transparent and competitive mechanisms. Gandolfo expressed the World Bank’s support for Kyrgyzstan’s energy sector reforms. The meeting also addressed the second phase of the project, which envisages the construction of additional solar power plants in the Talas and Batken regions. As part of efforts to reduce chronic power shortages, Kyrgyzstan has accelerated the development of renewable energy. In December 2025, the country inaugurated its first solar power plant in the Chui region, approximately 100 kilometers east of Bishkek. The 100-megawatt facility was constructed with $56 million in Chinese investment and is expected to generate around 210 million kWh of clean electricity annually.

Water

Water in Central Asia: Between Reality and Alarmism

The Regional Ecological Summit 2026 will take place in Astana on April 22-24. The event is intended to elevate Central Asia’s water and environmental agenda to the level of systemic solutions. Alongside preparations for the summit, however, an increasingly alarmist narrative is gaining traction among some experts. In this framing, water resources in Central Asia are presented as being in crisis, with predictions of shortages, threats to food security, and even potential conflict. Phrases such as “there is not enough water,” “the harvest is at risk,” and “the region is on the brink” are used with growing frequency. Such assessments are typically based on generalized and dramatized claims that fail to differentiate between countries or specific river basins. This creates the impression of a single, simultaneous crisis, whereas in reality the situation is far more complex. Yes, there is a problem, but it is not sudden or one-dimensional. Water scarcity in Central Asia is real. However, it must be interpreted accurately and objectively. According to expert estimates, up to 40% of water in the region is lost through deteriorating irrigation infrastructure, while more than 80% of water consumption is accounted for by agriculture. Current practice supports these figures. In southern Kazakhstan, seasonal water supply restrictions are regularly imposed. This year, for example, the government approved consumption limits for southern regions due to an expected shortage during the growing season. Uzbekistan has said, in joining the World Bank’s Water Forward initiative, that it aims to introduce water-saving technologies across its 4.1 million hectares of irrigated land and reduce irrigation losses by 25%. Equally important are developments in upstream countries, Kyrgyzstan and Tajikistan. According to a study by the Organisation for Economic Co-operation and Development, the region exhibits a structural interdependence between water and energy. More than 80% of electricity in these countries is generated by hydropower, meaning water resources are used simultaneously for energy production and irrigation. This creates systemic interdependencies. At the same time, coordination of water releases and electricity generation remains suboptimal, and the absence of long-term regulatory mechanisms has already led to water shortages during certain summer periods. This is a key point: the issue is not so much an absolute lack of water, but the complexity of coordination between upstream and downstream countries, as well as between sectors within individual states. In other words, water shortages in Central Asia are often driven less by natural conditions than by how water is distributed and managed. Particular attention in alarmist narratives is given to Afghanistan and the Kushtepa Canal. Estimates commonly suggest that the Qosh Tepa Canal could eventually divert around 6-10 km³ of water per year from the Amu Darya, although projections vary and depend on how fully the canal is completed and operated. While the canal is not yet fully operational, regional officials already treat it as a serious medium-term risk, with the precise scale of future withdrawals still under discussion. Countries in the region, especially Uzbekistan, have been pursuing dialogue with Afghanistan over the canal and...

Banking

Kyrgyz Banks Hold $1.3 Billion in Liquidity, but Businesses Lack Long-Term Financing

Kyrgyzstan’s banking sector holds a substantial volume of liquidity, yet small and medium-sized enterprises (SMEs) continue to face a shortage of development financing, according to a report by the Asian Development Bank. The ADB estimates that the system has accumulated around $1.3 billion in excess liquidity. At the same time, more than 45% of bank loans, and a similar share of microloans, are directed toward consumer needs, while lending to industry has steadily declined. Representatives of the banking sector say they are familiar with the report’s findings but consider them only partially accurate. “Commercial banks in Kyrgyzstan do indeed have sufficient funds, but the bulk of these deposits are short-term. The figures mentioned in the report mainly refer to balances on corporate accounts that are not time-bound, they are demand deposits and can be withdrawn at any moment. As for long-term funding for large-scale projects in industry and agriculture, banks lack such resources,” Anvar Abdraev, President of the Union of Banks of Kyrgyzstan, told The Times of Central Asia. According to Abdraev, this helps explain the perception that banks are reluctant to lend to industry and SMEs. He added that large businesses generally do not face financing constraints, as they tend to secure funding from international financial institutions and intergovernmental funds on concessional terms, often bypassing commercial banks. Banking sector representatives also point to structural challenges on the borrowers’ side, including underdeveloped business plans, which increase credit risk. In addition, a significant share of applications comes from startups, which banks classify as high-risk projects. Another limiting factor is the lack of sufficient liquid collateral among entrepreneurs. Banks also emphasize that non-performing loans in their portfolios are maintained at around 5-6%, prompting stricter borrower assessment criteria. As a result, the loan approval process for businesses can be lengthy, and rejection rates remain high. “The growth rate of consumer lending does indeed exceed the volume of loans directed toward business development. This is primarily because consumer loans are much easier to obtain today. This has largely been made possible by new banking technologies. Consumer loans can be issued online using remote identity verification. Moreover, the average size of such loans is significantly smaller than that of business loans,” Abdraev added. Thus, despite the high level of liquidity in the banking system, the shortage of long-term funding, combined with borrower-related risks, continues to constrain lending to Kyrgyzstan’s real sector.

TCA Interviews

How Young Professionals from Central Asia Are Building Global Careers

Beyond opportunity, a new generation of Central Asians is learning how to compete, adapt, and fit into global work environments. “I felt like I would understand what real work is much faster by living in the U.S.,” Ruzana Ileuova says. Many people view building a career abroad as an opportunity. However, for Central Asian professionals, it also entails constantly adapting to new identities and expectations. While logging in to work every day from a location that feels both familiar and unfamiliar, Ruzana learns to trust her abilities and adapt to unspoken expectations. She says that pressure increases when working remotely, as it requires a high level of self-discipline. “I always feel like I have to do more to prove myself,” she says. Despite strong language skills and academic preparation, she describes an ongoing sense of self-doubt, particularly in high-performance environments. “Even the language barrier still gives me imposter syndrome,” she adds. “And I’m the youngest on my team.” Her narrative highlights a crucial aspect of this generation: success overseas requires constant negotiation of confidence, identity, and location, in addition to opportunity. Reinventing the Path For others, the path to an international career begins not with a plan, but with chance. Originally from Bishkek, Kyrgyzstan, Aman Arykbaev did not imagine a global career. His journey began when he was unexpectedly selected for the green card lottery. “I used to think the green card was not a real thing until I saw that I was selected,” he says. His early years were characterized by uncertainty, as he arrived in the United States with little money and no guidance. “I worked almost two years installing heating, ventilation, and air conditioning. At that time, my English was very weak,” Arykbaev recalls. After attending a six-month IT boot camp, he was able to enter a new field and land his first tech job in a matter of weeks. “I had several interview stages, and by the end of the week, I got an offer.” Arykbaev, who is currently a senior quality engineer, exemplifies a characteristic of this generation: the ability to change course. Careers are now rebuilt, sometimes from the ground up, rather than fixed. Breaking Into Global Systems The route was more regimented, but no less difficult, for Aldiyar Bekturganov, an Amazon software engineer. He followed a well-known path of internships, networking, and applications after relocating to the U.S. for college. However, the process was anything but easy. “I failed my first interview completely,” he says. That setback accelerated his learning curve. Even after landing a job, entering the workforce was not without its challenges. The shift from university to professional life, he explains, was immediate. “You suddenly realize the work actually matters,” he says. “If something is delayed, people are waiting on you.” Unlike academic settings, where mistakes are part of the process, professional environments demand results that affect teams and timelines. While Bekturganov represents a more traditional corporate trajectory, Dameli Bozzhanova offers a contrasting perspective shaped by entrepreneurship and flexibility. Working in...