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Central Asia + Japan

Japan Extends $229 Million Loan to Boost Energy Efficiency in Uzbekistan

Japan will lend Uzbekistan 36.8 billion yen, roughly $229 million, to cut energy waste in public buildings and industry, targeting two sectors that place heavy pressure on the country’s fuel and electricity systems. The financing was formalized on June 10 in Tashkent, where Japanese Ambassador Kenji Hirata and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov signed exchange notes for two projects under Japan’s yen-loan program, according to the Embassy of Japan in Uzbekistan. The larger of the two projects, Energy Efficiency Improvement in Public Buildings, has a maximum value of 21.788 billion yen, about $136 million. A second project, Energy Efficiency Improvement in the Industrial Sector, is valued at up to 14.969 billion yen, about $93.4 million. Both loans carry an annual interest rate of 2.4% on the principal and 0.8% for consulting services. They will be repaid over 25 years, including a seven-year grace period. The financing is being provided on concessional and untied terms, allowing greater flexibility in procurement. The projects are aimed at lowering demand rather than adding new generating capacity. In practical terms, that means modernizing equipment and introducing energy-saving technologies in industrial and commercial operations, as well as in public buildings. The public-buildings component addresses one of the weaker points in Uzbekistan’s energy system. The country’s schools, preschools, hospitals and other state facilities are often expensive to heat and difficult to cool, particularly in buildings constructed during the Soviet period with little regard for energy efficiency. Previous World Bank work on Uzbekistan has identified public buildings from the 1970s and 1980s as poorly insulated and reliant on old boilers and water-heating systems with high energy intensity. The problem is visible in the country’s air as well as its energy bills. In winter, inefficient heating systems increase demand for fuel, while coal- and fuel-oil-based heating contributes to smog in cities such as Tashkent, alongside dust, traffic and industrial emissions. Energy-efficiency upgrades can reduce the fuel demand that worsens urban air pollution during cold weather. Uzbekistan remains heavily dependent on fossil fuels for its energy supply. The Japanese Embassy noted that the country’s energy consumption and greenhouse gas emissions per unit of gross domestic product remain higher than global averages, making improvements in energy efficiency a national priority. The industrial component addresses another pressure point. Uzbekistan is trying to expand manufacturing and exports, but that ambition depends on a power system still dominated by fossil fuels and burdened by aging infrastructure. For Tashkent, cutting the energy used by factories and commercial enterprises is part of the same energy-security challenge as building new power plants or adding renewable capacity. The agreement also gives practical form to one of the priorities in the Tokyo Declaration adopted at the first Central Asia-Japan Summit in December 2025. The declaration identified “Green and Resilience” as one of three major areas for future cooperation between Japan and the five Central Asian states. The loans follow President Shavkat Mirziyoyev’s visit to Japan late last year, when Uzbek and Japanese...

Nuclear Energy

Kazakhstan Recasts Its Nuclear Past

At the United Nations in late April, Robert Floyd, executive secretary of the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization, warned that any renewed nuclear test by Russia, the United States, or another state could draw other nuclear powers back into testing. His remarks followed the re-emergence of nuclear testing as an issue in international political debate. Kazakhstan enters this debate from the opposite side of nuclear history. It is a former Soviet nuclear test ground that now defines its nuclear policy through civilian power, peaceful use, and non-proliferation. Kazakhstan’s nuclear future is shaped by its nuclear past. The country was a Soviet nuclear test ground at Semipalatinsk, now Semey, where late-Soviet public-health concerns helped force nuclear testing into public politics before the site’s closure. After independence, Kazakhstan renounced the Soviet-era nuclear weapons it inherited on its territory. Its present nuclear-energy policy begins from that record. It is not a search for nuclear status, but a civilian program formed by restraint, public memory, and national development. Semipalatinsk is the source of Kazakhstan’s authority on nuclear testing. Between 1949 and 1989, the Soviet Union used the site as one of its principal nuclear testing grounds. In total, 456 nuclear tests were conducted there, including 340 underground and 116 atmospheric tests. Kazakhstan closed the site in 1991. These facts remove the subject from arms-control abstraction. For Kazakhstan, nuclear testing is a territorial, social, public-health, and political inheritance, bound to the eastern steppe and the communities around the former test range. Atomic Lake gives that history a single, physical form. In January 1965, the Soviet Union carried out the Chagan underground nuclear explosion at the Semipalatinsk Test Site. The blast, with a yield of 140 kilotons, was part of a Soviet program for using underground nuclear explosions in civil engineering, including reservoirs and channels in water-scarce regions. It created the crater later known as Atomic Lake. The site remains a physical residue of the Soviet claim that nuclear explosions could serve economic and social development. This is why nuclear technology in Kazakhstan cannot be politically neutral. Independence gave Kazakhstan agency in that history. Kazakhstan transferred Soviet-era nuclear weapons to Russia by April 1995 and took part in cooperative threat reduction, including the sealing of test-site boreholes and tunnels. More recently, it became host to the International Atomic Energy Agency’s Low Enriched Uranium Bank at Ulba, in Oskemen. The bank is an IAEA-owned fuel-assurance reserve for peaceful nuclear power, designed to support access to nuclear fuel without encouraging additional enrichment programs. Kazakhstan’s civilian nuclear claim, therefore, rests on practice: disarmament, threat reduction, and non-proliferation infrastructure. The policy now turns on a practical paradox. Kazakhstan has been the world’s leading uranium producer since 2009 and produced about 40% of the world’s uranium in 2025. Yet it has no operating nuclear power plant. Its Soviet-era BN-350 reactor, near Aktau on the Caspian Sea, was decommissioned in 1999 after decades of electricity generation and desalination. Kazakhstan is central to the global nuclear fuel cycle but has...

Clean Energy

Kazakhstan Climbs 30 Positions in Clean Energy Investment Ranking

Kazakhstan has significantly improved its position in the international Climatescope ranking of clean energy investment attractiveness, rising by 30 places over the past eight years, according to the Ministry of Energy. The country moved from 54th place in 2017 to 24th in 2025 among emerging markets, reflecting the expansion of renewable energy and improvements in the investment climate. The Climatescope ranking assesses countries’ attractiveness for investment in clean energy and decarbonization, analyzing policies, infrastructure, and market potential across more than 100 nations. The study is compiled by BloombergNEF, a research unit of Bloomberg specializing in data and forecasts on the energy transition, new transport technologies, and commodity markets. According to the ministry, Kazakhstan’s improved standing is driven by increased investment in renewable energy projects and consistent state support for green energy. The country has introduced competitive auctions and guaranteed power purchase mechanisms, which have helped attract international investors. “Kazakhstan is making significant progress in the development of clean energy. Growing investor interest and improved market conditions indicate that the country is becoming one of the regional leaders in attracting capital for low-carbon technologies,” the ministry said. Major international companies involved in projects in Kazakhstan include TotalEnergies, China Power, Masdar, and China Energy. Looking ahead, Kazakhstan plans to commission more than 8 GW of new renewable energy capacity by 2035, which is expected to diversify the energy mix and strengthen the resilience of the national power system. Among Central Asian countries, Uzbekistan achieved the strongest result in the 2025 ranking, placing 23rd. As previously reported by The Times of Central Asia, Kazakhstan presented its green energy transition strategy at an international forum in the United Kingdom. In addition, the government aims to eliminate the electricity deficit and begin exports as early as 2027.

Hydrogen Energy

Kazakhstan and China Launch Hydrogen Energy Technology Innovation Center

Kazakhstan and China have expanded cooperation in clean energy with the launch of the China-Kazakhstan Hydrogen Energy Technology Innovation Center at Al-Farabi Kazakh National University in Almaty on April 9. The center is part of Kazakhstan’s strategy to build a modern technological base linking science, education, and industry in support of the country’s transition to low-carbon energy. Speaking at the opening ceremony, Energy Minister Yerlan Akkenzhenov highlighted the importance of international partnerships in the development of the energy sector. “Hydrogen energy is one of the strategic priorities for the development of the energy sector. The Concept adopted in 2024 laid the legal and economic foundation for the creation of a new industry aimed at decarbonizing the economy. The new center should become a key platform for training next-generation engineers, conducting applied research, and rapidly introducing innovations into production,” Akkenzhenov said. As part of the ceremony, Al-Farabi Kazakh National University, Shanghai Jiao Tong University, and Energy China International Corporation signed a trilateral memorandum of understanding outlining the center’s operational framework. The agreement includes expanding scientific and technical cooperation, facilitating technology transfer, and promoting academic exchange. The partners also plan to conduct joint research, test hydrogen technologies, and launch pilot projects, with a particular focus on the commercialization of innovations and their integration into Kazakhstan’s industrial sector. The development of hydrogen energy is a key element of the global transition to cleaner energy systems. According to Kazakhstan’s Ministry of Energy, the country has significant potential in this field due to its natural resource base and growing renewable energy capacity. Cooperation with Chinese technology partners is expected to strengthen Kazakhstan’s position in emerging energy markets and support industrial modernization. During the ceremony, Zhanseit Tuimebayev, chairman of the board and rector of Al-Farabi Kazakh National University, highlighted the evolving role of universities as drivers of economic and technological development. “Universities today are not only centers for training specialists but also key drivers of economic growth, technological development, and national competitiveness. Al-Farabi National University has consistently pursued this mission, transforming itself into a new type of university, one that not only educates, but also develops technologies, shapes markets, and acts as a full-fledged partner to the state and industry,” Tuimebayev said.

Clean Energy

Uzbekistan Moves Forward with $6 Billion Biofuel Project in Khorezm

Uzbekistan has announced a major step toward developing large-scale clean energy infrastructure with the signing of a binding implementation agreement for a $6.08 billion biofuel project in the Khorezm region. The Project Implementation Agreement (PIA) was signed between Allied Biofuels FE LLC and the regional government of Khorezm, formalizing plans to build what the developers describe as Central Asia’s first integrated biofuel refinery. The agreement was concluded on April 2 in Perth, Australia, by Khorezm regional governor Jurabek Rakhimov and Alfred Benedict, chairman and general director of Allied Biofuels. According to Allied Biofuels, the project has been granted special economic zone status under a presidential decree, providing tax exemptions and customs incentives aimed at ensuring long-term financial stability and investor confidence. Once completed, the facility is expected to produce sustainable aviation fuel (SAF), electro-synthetic SAF (e-SAF), and green diesel at an industrial scale. Annual output is projected to reach approximately 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel. The refinery will be supported by a large renewable energy system, including battery storage and hydrogen production capacity. The project also incorporates a closed-loop model that converts biogenic carbon dioxide into fuel while using agricultural feedstock as a primary input. Officials say the initiative is designed not only to produce fuel but also to strengthen industrial capacity and introduce advanced technologies. The construction phase alone is expected to generate around 2,000 direct and indirect jobs. Speaking at the signing, Rakhimov said the project would help build a “high value-added industrial chain” in the region and expand export potential. He added that cooperation with Allied Biofuels would support the transfer of advanced green technologies and position Khorezm as “an emerging international hub for green industry.” Benedict described the agreement as “a defining moment” for both the company and the broader clean energy sector. “This project sends an unambiguous message to the global investment community, Uzbekistan is not merely open for business; it is ready to lead,” he said. The project is being developed in partnership with international technology providers, including hydrogen systems supplied by Plug Power. Advisory support for the transaction was provided by Affinity Capital Group.

Green economy

AIIB Provides $500 Million to Support Uzbekistan’s Green Economy Reforms

The Asian Infrastructure Investment Bank (AIIB) and the Government of Uzbekistan have signed a $500 million financing agreement to support the country’s Green and Resilient Market Economy Program, the Bank announced on November 28. The initiative is designed to accelerate Uzbekistan’s transition toward a greener, more resilient, and market-oriented economy through a comprehensive package of policy and institutional reforms. According to AIIB, the funding will assist the Uzbek government in strengthening the policy and governance frameworks necessary for low-carbon development, improved public-sector efficiency, and greater resilience to climate-related risks. The initiative falls under AIIB’s Climate-Focused Policy-Based Financing approach, which supports systemic reforms that have economy-wide climate impacts. The reforms backed by the new financing include measures to enhance efficiency and governance in the energy sector and state-owned enterprises, expand climate-responsive public procurement, and establish transparent systems for carbon-credit development and trading. The program also highlights the development of a robust Measurement, Reporting, and Verification (MRV) system to attract greater private capital for climate investments. “This operation reflects AIIB’s commitment to supporting Uzbekistan’s reform agenda through measures that can deliver lasting climate and economic gains,” said Konstantin Limitovskiy, AIIB’s Chief Investment Officer for Region 2 and Project and Corporate Finance Clients. He noted that the program is expected to foster conditions conducive to increased climate finance and stronger private-sector engagement in Uzbekistan’s green transition. The program is co-financed by the World Bank Group and is aligned with several national strategies, including Uzbekistan’s Strategy for Transition to a Green Economy for 2019-2030, its second Nationally Determined Contribution under the Paris Agreement, and the broader Uzbekistan-2030 development strategy. These frameworks stress clean energy, resource efficiency, and long-term economic resilience. AIIB projects that the reforms will generate substantial environmental and social benefits over time. More efficient resource use, the scaling up of clean energy solutions, and improved climate regulation are expected to reduce greenhouse gas emissions, enhance air quality, and strengthen the country’s capacity to withstand climate shocks. The adoption of cleaner technologies could also lower energy costs and improve living conditions, particularly for vulnerable communities. In a separate agreement earlier this year, AIIB provided a $71.1 million loan to Uzbekistan to modernize rural roads in Khorezm and Karakalpakstan. That project aims to enhance climate resilience and improve access to markets and public services for rural populations.