• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00209 0%
  • TJS/USD = 0.10523 0%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28530 0%

Tajikistan Accelerates Transition to Green Energy

Tajikistan has launched its largest solar energy initiative to date, marking a significant step in its transition to green energy. The project entails the construction of two photovoltaic power stations with a combined capacity of 500 MW, an unprecedented scale for the country’s energy sector.

An investment agreement formalizing the project was signed on 13 January 2026 between the government of Tajikistan and Ayon Energy.

The project will involve the development of two equally sized solar power plants:

  • 250 MW in Asht District
  • 250 MW in Jaihun District

These new facilities are expected to play a crucial role in mitigating seasonal electricity shortages. Tajikistan, which relies heavily on hydropower, frequently faces deficits during the winter months. The introduction of solar generation capacity will ease pressure on existing hydroelectric resources, improving the reliability of electricity supply for both households and businesses.

Ayon Energy has committed to completing the design, construction, and commissioning of the plants within 2026. The total investment is estimated at $250 million.

In addition to this approved project, Tajikistan is also evaluating a potential 400 MW solar power plant in partnership with the UAE’s state-owned company Masdar.

Kyrgyzstan’s Power Consumption Rises Amid Declining Water Levels at Toktogul Reservoir

Electricity consumption in Kyrgyzstan continues to rise. In 2025, the country consumed 19.3 billion kWh, an increase of 900 million kWh compared to the previous year. Of this total, 15.4 billion kWh was generated domestically, while 3.9 billion kWh was imported from Turkmenistan, Uzbekistan, Kazakhstan, and Russia, officials reported at a government meeting on 14 January.

Authorities also highlighted critically low water levels at the Toktogul Hydroelectric Power Plant, the country’s largest energy facility, which generates approximately 40% of its electricity. The Toktogul reservoir currently holds 9.102 billion cubic meters of water, a drop of 1.631 billion cubic meters compared to the same date in 2024.

The reservoir is approaching the critical or “dead” level of 5.5 billion cubic meters, below which the plant would be unable to generate electricity. Officials at the meeting warned that continued low inflows could force a reduction in power generation and stressed the importance of adhering strictly to electricity consumption limits.

Kyrgyzstan has long struggled with seasonal electricity shortages, particularly in winter, when many households rely on electric heating. Energy Minister Taalaibek Ibraev previously cautioned that the 2025–2026 winter season could be one of the most difficult in recent years due to the water shortfall at Toktogul.

To address the electricity deficit, Kyrgyzstan is pressing ahead with both the construction of new hydropower projects and the modernization of existing facilities.

In November 2025, the country completed a full modernization of Toktogul, located on the Naryn River. The upgrade increased the plant’s capacity from 1,200 MW to 1,440 MW.

Kyrgyzstan is also moving forward with the construction of the Kambarata-1 hydropower plant, a strategic regional project being developed in partnership with Kazakhstan and Uzbekistan. Once completed, Kambarata-1 is expected to have a capacity of 1,860 MW and produce 5.6 billion kWh annually.

Ashgabat to Host Regional Center for Combating Desertification in Central Asia

A regional center dedicated to combating desertification will be established in Turkmenistan’s capital Ashgabat. The center aims to coordinate efforts among Central Asian nations to address environmental and water management challenges.

According to Pirli Kepbanov, Director of the National Institute of Deserts, Flora and Fauna under Turkmenistan’s Ministry of Environmental Protection, the new institution will consolidate regional scientific and practical capacities to tackle transboundary issues affecting agriculture and water resources.

“Based at the center, the region’s states will be able to cooperate on shared concerns related to agricultural production and water infrastructure,” Kepbanov said.

Ashgabat’s selection as the host city is no coincidence. Turkmenistan has long been a regional hub for desert science, with established research institutions specializing in land degradation, desert ecosystems, and the adaptation of economic activity to arid conditions.

“There are only four such scientific institutes worldwide, and one of them is the National Institute of Deserts, Flora and Fauna of Turkmenistan,” Kepbanov added.

He also emphasized Turkmenistan’s historical role in developing desert science across Central Asia and beyond. “The first Chinese desert scientists trained here,” he said, adding that contemporary Chinese experts acknowledge Turkmenistan’s important contributions to their national school of desert research.

Currently, the National Institute collaborates with the Xinjiang Institute of Ecology and Geography in China, the A.N. Kostyakov Federal Scientific Center for Hydrotechnics and Land Reclamation in Russia, and is receiving partnership proposals from universities across Central Asia.

Kyrgyzstan Moves to Tighten Vehicle Emissions Rules as Air Pollution Worsens

Kyrgyzstan is preparing to tighten environmental regulations on motor vehicles as part of a broader effort to combat rising air pollution in its major cities. A draft bill currently under public discussion proposes mandatory requirements for the presence and proper functioning of catalytic converters in vehicles originally manufactured with them.

The initiative targets one of the most persistent sources of urban air pollution: an aging vehicle fleet in which catalytic converters are frequently removed. The absence of these devices significantly increases toxic emissions and fuel consumption, with direct consequences for public health.

Under the proposed amendments, vehicles that do not meet environmental standards could be prohibited from operating. Driving a vehicle without a functioning catalytic converter would result in fines of approximately $114 for private individuals and about $400 for legal entities.

According to the bill’s explanatory note, the measures aim primarily to reduce pollution in urban centers such as Bishkek and Osh. Lawmakers emphasize that the widespread removal of catalytic converters contributes to both higher emissions and increased fuel use.

Data from the Ministry of Natural Resources, Ecology, and Technical Supervision show that motor vehicles, particularly older models lacking emissions control systems, account for roughly 30% of air pollution in Bishkek.

Vehicle numbers in the capital have surged in recent years. Bishkek now has more than 600,000 registered vehicles, nearly double the estimated road infrastructure capacity of 350,000. Over 300,000 of these vehicles are more than 15 years old, making them a major contributor to harmful emissions.

Air quality in the city of more than one million residents remains a persistent concern, especially in winter, when coal-burning for residential heating, responsible for an estimated 40% of pollution, intensifies. Seasonal spikes frequently push Bishkek into the global rankings of the most polluted cities.

The draft legislation could also pave the way for a regulated system to dispose of non-functioning catalytic converters, which contain valuable materials such as platinum group metals, rhodium, and cerium. The presence of these metals has fueled a gray market, with online advertisements and repair shops offering to remove converters for resale.

Lawmakers argue that formal regulation would help curb theft and establish a legal recycling sector. In September 2025, the Cabinet of Ministers imposed a six-month ban on the export of catalytic converters and other waste containing precious metals, in an effort to limit illegal outflows and stabilize domestic oversight.

The bill’s authors describe catalytic converter enforcement as a concrete step toward meeting Kyrgyzstan’s commitments under the Paris Agreement and reducing transport-sector greenhouse gas emissions.

However, the effectiveness of the new rules will depend on enforcement capacity. With a significant portion of the current fleet already non-compliant, and the average vehicle age remaining high, implementation may face resistance unless supported by effective inspection systems and realistic compliance pathways.

Kyrgyzstan’s proposed emissions crackdown signals a shift toward more enforceable environmental policy. If properly implemented, the measures could meaningfully reduce air pollution and curtail illicit trade in precious metals. Their success, however, will hinge on the state’s ability to enforce standards while integrating a large

AIIB Supports Almaty Railway Bypass with $150 Million Loan

The Asian Infrastructure Investment Bank (AIIB) has signed a landmark $150 million loan agreement to finance the Almaty Railway Bypass Project in Kazakhstan. The funding will be provided to Kazakhstan Temir Zholy (KTZ), the national railway operator, under a non-sovereign loan structure.

The AIIB loan forms part of a broader international financing package of up to $300 million, denominated in Swiss francs. The package is jointly arranged by the International Finance Corporation (IFC), AIIB, and the Multilateral Investment Guarantee Agency (MIGA), with IFC and AIIB providing investment and MIGA offering risk guarantees. According to AIIB, the structure reflects robust international confidence in Kazakhstan’s transport modernization efforts and in KTZ’s strategic role in national infrastructure.

The project will support the construction of a new single-track, electrified freight railway bypass along the northern perimeter of Almaty, Kazakhstan’s largest city. The bypass will extend approximately 75 kilometers, connecting Zhetygen station in the east with Kazybek Bek station in the west. Its primary objective is to redirect freight traffic away from Almaty’s city center by establishing a dedicated cargo corridor. The scope also includes new stations, bridges, overpasses, and upgrades at both terminal points.

According to AIIB, the bypass is expected to alleviate congestion on Almaty’s current rail network, enhance passenger service efficiency, and reduce freight delays. By separating passenger and cargo rail lines, the project aims to lower emissions caused by congestion and improve operational safety.

AIIB emphasized the project’s role in strengthening Kazakhstan’s position as a regional transit hub by boosting rail efficiency along key Eurasian corridors, including the Middle Corridor. “Strengthening Kazakhstan’s transport backbone is essential for supporting the country’s long-term growth and its role as a key connectivity hub across Eurasia,” said Konstantin Limitovskiy, AIIB’s Chief Investment Officer. He noted that the Almaty bypass addresses a major bottleneck in the national rail system, enabling “faster, cleaner, and more reliable freight movement.”

IFC also underscored the regional significance of the initiative. “By addressing key bottlenecks and improving network reliability, the project is expected to generate positive spillovers for trade facilitation, private sector competitiveness, and the overall logistics ecosystem,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources.

Kazakhstan, a founding member of AIIB, is one of the bank’s most active clients in Central Asia. AIIB stated that the project aligns with its strategic focus on connectivity and regional cooperation. Implementation will be led by Kazakhstan Temir Zholy, with construction set to begin following the conclusion of final procurement procedures.

In July of last year, Kazakhstan Temir Zholy secured a separate syndicated loan of up to 480 million Swiss francs (approximately $540 million) for a three-year term. Arranged by Abu Dhabi Commercial Bank and Deutsche Bank, the loan supports infrastructure development along the Trans-Kazakhstan Railway Corridor.

Kazakhstan Debates Parliamentary Reform as Inflation Pressures Living Standards

The Kazakh government is actively developing the framework for a future unicameral parliament, working to define its status, powers, and functions. Currently, Kazakhstan’s legislative branch consists of two chambers: the Senate and the Mazhilis. 

The proposed transition to a unicameral system has been positioned by authorities as a step toward democratization. However, many citizens remain unclear about the details and implications of the reform, particularly as inflation and declining living standards dominate public concern.

Uncertain Details of Reform

In September 2025, President Kassym-Jomart Tokayev proposed holding a nationwide referendum on transitioning to a unicameral parliament in 2027. While some analysts have speculated about a faster timeline, no official acceleration beyond 2027 has been announced.

“The establishment of a parliamentary republic is not under consideration. The foundational model of a ‘Strong President, Influential Parliament, Accountable Government’ remains unchanged,” Tokayev previously stated.

According to political analyst Gaziz Abishev, pivotal developments are expected on January 20, when the National Kurultai (Assembly) convenes. He believes this meeting will outline the contours of constitutional reform and potentially signal a date for the referendum.

“If the decree on holding a referendum is signed during the Kurultai, the vote could be held on March 22 [2026],” Abishev stated.

Under the current system, the Senate represents regions and appointive quotas, reviewing legislation passed by the Mazhilis and serving as a constitutional buffer. Any move to unicameralism would require redefining how regional interests are represented and how legislative oversight is maintained without an upper chamber.

The National Kurultai serves as a platform for dialogue between the government and society, addressing national identity, economic development, social justice, and improving the quality of life. Historically, the Kurultai was a gathering of Turkic and Mongol tribes.

Over 500 Public Proposals Submitted

Public discussion around the proposed unicameral parliament has been active. Since the launch of a dedicated “Parliamentary Reform” section on the state portals e-Otinish and Egov, over 500 proposals have been submitted by citizens, experts, and public organizations.

Despite this engagement, tangible benefits for ordinary citizens remain vague, aside from a potential reduction in government spending.

Globally, more than half of national parliaments operate as unicameral systems. According to IPU Parline, 107 out of 188 legislatures follow this model, primarily in unitary states with smaller populations. Unicameral systems are often praised for faster legislative processes, lower administrative costs, and increased transparency.

Kazakhstan previously had a unicameral legislature under the 1993 Constitution. Following the invalidation of the 1994 elections, the Supreme Council was dissolved. In 1995, the country transitioned to its current bicameral system. The Senate, as the upper house, plays a stabilizing and arbitration role. Analysts caution that without a second chamber, legislative processes may be vulnerable to hasty or populist decisions.

Potential for Early Elections

Abishev suggests that a referendum in March 2026 could prompt an early electoral cycle.

“Under the current schedule, the next Mazhilis elections are set for January 2028. However, they could be moved up to summer 2026 if Parliament adopts a constitutional amendment package in April or May following the referendum,” he noted, adding that a new legislative structure would need to be implemented.

He also emphasized the link between political stability and Kazakhstan’s economic outlook. “Oil prices could decline due to global oversupply, and sanctions pressures, stemming from the ongoing war, will increase, affecting both primary targets and surrounding states,” Abishev warned. “The budget deficit and new tax policies will continue to strain the economy.”

He argues that if the medium-term economic forecast for 2027-2028 remains unfavorable, an early reset of parliamentary mandates extending through 2031 may be a rational choice.

Public Skepticism Grows

On social media, public reaction to the proposed parliamentary reform has been tepid. Many citizens argue that the government should prioritize the economy, not constitutional changes. The central concern remains inflation and its impact on living standards.

In 2025, inflation in Kazakhstan reached 12.3%. The sharp rise in prices has persisted since 2022, when the war in Ukraine disrupted supply chains and subjected Kazakhstan to indirect sanctions pressure. Many consumer goods in Kazakhstan are imported from Russia, where sanctions have directly influenced pricing.

Adding to public concern, a new Tax Code came into effect on January 1. The most controversial change is a hike in the value-added tax (VAT) from 12% to 16%.

Economists warn that the first quarter of 2026 will bring another surge in prices. This prediction has already begun to materialize: retailers across Kazakhstan are posting notices attributing higher prices to the VAT increase. In this climate, most Kazakhs are more preoccupied with daily survival than with parliamentary restructuring.