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Tajikistan to Receive Nearly €50 Million from the EBRD to Reduce Electricity Losses

The European Bank for Reconstruction and Development (EBRD) will provide Tajikistan with a loan and grant package totalling approximately €50 million to help reduce electricity losses in two regions of the country. According to the Ministry of Finance, total financing amounts to €49.6 million, including €28 million in loans, with the remainder provided as a grant. The loan terms are highly concessional. The interest rate is set at 0.5% per annum plus Euribor, meaning a fixed margin is added to the benchmark rate, which fluctuates based on market conditions. For example, if Euribor stands at 0.2% at the time of disbursement, the total interest rate would be 0.7%. The loan will be repaid over 20 years. During the first six years, only interest payments will be required, while the principal will be repaid over the remaining 14 years. Presenting the agreement to parliament, First Deputy Minister of Finance Yusuf Majidi said the primary objective is to reduce energy losses, replace outdated infrastructure, introduce modern metering systems, and improve billing and revenue collection. The project involves modernisation of electricity distribution networks across nine regional branches in the Sughd and Khatlon regions. The need to address electricity losses has also been highlighted by President Emomali Rahmon. In an address to parliament, he cited figures showing that during the first 11 months of 2025, electricity losses totalled 3 billion kWh-500 million kWh less than in the same period a year earlier.

Energy Sector

Kyrgyzstan Plans Central Asia’s First Live-Line Energy Training Center

Kyrgyzstan plans to establish a competence center for live-line working technologies, with the aim of developing it into a regional hub for training highly qualified specialists from Kazakhstan, Uzbekistan, and Tajikistan. The center will focus on maintaining power grids and electrical equipment without de-energizing high-voltage lines. The National Electric Network of Kyrgyzstan has signed a cooperation agreement with Grid Company of Tatarstan (Russia) to develop and introduce live-line working technologies, including the creation of a specialized training center. The agreement was signed during the Energoprom-2026 international electric power forum in Kazan and was attended by Kyrgyz Energy Minister Taalaibek Ibrayev and Russian Energy Minister Sergey Tsivilyov. The initiative aims to enable maintenance of electrical grids without disconnecting consumers. This is expected to reduce the frequency and duration of power outages, lower technical losses, and improve the reliability and quality of electricity supply for households and businesses. The project is particularly relevant for Kyrgyzstan, where electricity supply is frequently interrupted due to the maintenance needs of aging infrastructure. Authorities say the initiative could help modernize the country’s energy sector and strengthen its role in regional cooperation. The partnership with Russia also provides for the supply of electrical equipment and the localization of production in Kyrgyzstan, including cables, switchgear, and metering devices. The project is also expected to position Kyrgyzstan as a regional training and competence hub for the electric power industry.

Kazakhstan to Build Eight New Power Plants by 2030

Kazakhstan plans to build eight new power plants and modernize 11 existing facilities by 2030 as part of a national project to expand coal-fired power generation. The project, approved in March, aims to meet growing electricity demand and modernize the country’s energy infrastructure, strengthening the stability of the Unified Power System. According to Kazakhstan’s Ministry of Energy, 7.8 GW of new and upgraded capacity is scheduled to be commissioned by 2030. This includes both newly constructed plants and modernisation of existing facilities . The new construction program, with a total capacity of 5.3 GW, includes projects in several key regions. Plans include a 700 MW condensing power plant in Kurchatov; the Ekibastuz GRES-3 plant with a capacity of 2,640 MW; thermal power plants in Karaganda (350 MW) and Ekibastuz (180 MW); as well as combined heat and power plants in Zhezkazgan (500 MW), Kokshetau (240 MW), Semey (360 MW), and Ust-Kamenogorsk (360 MW). The project also aims to improve the efficiency of existing capacity. According to ministry estimates, modernization will reduce equipment wear by 13%. The Ministry of Energy stated that the initiative is expected to provide a reliable energy base for industrial growth, support the development of the digital economy, and facilitate the adoption of AI technologies. Coal-fired generation, if modernized and compliant with environmental standards, will continue to play a key role in ensuring the country’s energy security. The Times of Central Asia previously reported that Kazakhstan plans to attract at least $15.5 billion in investment for the development of coal-fired power generation. The country is expected to fully meet domestic electricity demand by 2027 and achieve a sustainable surplus by 2029, enabling it to begin exporting electricity. At the same time, the government plans to create a “data center valley” in Pavlodar powered by coal-fired energy.

Kazakhstan to Invest Over $15.5 Billion in Coal-Fired Power Generation

Kazakhstan is launching a large-scale investment programme in the energy sector. By 2030, the country plans to attract at least $15.5 billion for the development of coal-fired power generation. The corresponding national project has been approved by the government. According to government estimates, electricity demand in Kazakhstan will grow at an accelerated pace, partly due to the expansion of the IT sector, data centers, and AI. Under these conditions, the authorities are prioritising baseload generation, which renewable energy sources are not yet able to fully provide. The national project provides for the commissioning and modernisation of 7.8 GW of capacity. Key facilities include an energy cluster in Ekibastuz (2,640 MW), power plants in Kurchatov (700 MW) and Zhezkazgan (500 MW), as well as new combined heat and power plants in Kokshetau, Semey, and Ust-Kamenogorsk. Financing will come primarily from extra-budgetary sources through the attraction of private capital. The government expects the investments to generate a multiplier effect in the economy, including growth in mechanical engineering, energy equipment manufacturing, and automated systems. At the same time, 11 existing power plants are to be modernised. This is expected to reduce equipment wear by 12.6% and increase generation efficiency. Implementation of the project will also lead to an increase in thermal coal consumption of around 20 million tons per year. To ensure supply, additional investment is planned in transport infrastructure, including expanding the railcar fleet and modernising railway lines. Coal-fired generation is therefore set to become a driver not only for the energy sector but also for related industries. Despite the emphasis on coal, the authorities are counting on the introduction of “clean” generation technologies. New power plants will be equipped with modern emission-control systems, including electrostatic precipitators and desulphurization units. These measures are expected to reduce environmental impact and bring the industry closer to international standards. The project is expected to create about 4,500 permanent jobs, along with employee support measures such as subsidised mortgages. The launch of the project comes amid the global energy transition, creating a strategic dilemma. On the one hand, Kazakhstan aims to ensure energy security and sustain economic growth. On the other, pressure linked to the international climate agenda remains. As previously reported by The Times of Central Asia, the country plans to fully meet domestic electricity demand by 2027 and achieve a sustainable surplus by 2029, allowing it to begin exports. At the same time, new energy-intensive projects are under consideration, including the creation of a “data centre valley” in the Pavlodar region, which is also expected to rely on coal-fired generation.

Kyrgyzstan Plans Gradual Electricity Tariff Increases to Address Energy Sector Deficit

Kyrgyzstan will raise household electricity tariffs starting May 1, as part of a broader reform program aimed at reducing subsidies and bringing tariffs closer to the actual cost of power generation. Under the new policy, the household tariff will increase by approximately $0.003 per kilowatt-hour, reaching $0.018 per kWh. According to the Ministry of Energy, tariffs are expected to continue rising each May until at least 2030, when they are projected to fully cover production costs. The government has outlined a tentative schedule for further increases: 2027: rise of about $0.004 per kWh 2028: rise of about $0.0045 per kWh 2029: rise of about $0.005 per kWh 2030: rise of about $0.0065 per kWh Even after the planned increase in 2026, households will cover only around 45% of the real cost of electricity, Timur Orozaliev, Director of the Department for Regulation of the Fuel and Energy Complex, told the Kabar state news agency. He said the cost of electricity production in 2026 is estimated at approximately $0.034 per kWh, meaning the new tariff will pay for less than half of actual generation costs. Electricity tariffs for industrial enterprises, financial institutions, restaurants, and government agencies are already two to three times higher than those for households. Despite the planned increases, electricity prices in Kyrgyzstan remain among the lowest in Central Asia. Electricity demand continues to grow. In 2025, national consumption reached 19.3 billion kWh, an increase of 900 million kWh compared with 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. Kyrgyzstan regularly experiences seasonal power shortages, particularly during winter, when many households rely on electricity for heating. To address the deficit, the government is working to build new hydropower plants and modernise existing facilities as part of a broader strategy to stabilise the national energy system and reduce dependence on electricity imports.

Central Asia Launches Regional Electricity Market with World Bank Support

On January 22, the World Bank’s Board of Executive Directors approved the 10-year Regional Electricity Market Interconnectivity and Trade (REMIT) Program, an ambitious initiative to establish Central Asia’s first regional electricity market. The program aims to boost cross-border electricity trade, expand transmission capacity, and lay the foundation for large-scale renewable energy integration across the region. Electricity demand in Central Asia is projected to triple by 2050 under a business-as-usual scenario. Yet electricity trade in the region currently accounts for only 3% of total demand. The REMIT Program seeks to harness Central Asia’s diverse and complementary energy resources: hydropower in Kyrgyzstan and Tajikistan, thermal power from coal and natural gas in Kazakhstan, Turkmenistan, and Uzbekistan, and the region’s rapidly expanding solar and wind potential. Over the next decade, REMIT aims to: Increase regional electricity trade to at least 15,000 GWh annually, enough to supply millions of consumers Triple regional transmission capacity to 16 GW Enable up to 9 GW of clean energy integration The initiative is designed to enhance regional energy security, reduce power outages, lower electricity costs, and promote a more resilient and interconnected grid system. Total indicative financing for the program is $1.018 billion, to be deployed in three phases. These funds will support the creation and operation of a regional energy market, boost transmission infrastructure, introduce digital technologies to improve grid reliability, and strengthen regional energy institutions and coordination mechanisms. Investments are also expected to generate both construction-related employment and high-skilled jobs tied to market operations. In the program’s first phase, Kyrgyzstan, Tajikistan, Uzbekistan, and the Central Asian Countries’ Coordinating Dispatch Center (CDC) Energia will benefit from grants and concessional financing totaling $143.2 million. This comprises $140 million from the World Bank’s International Development Association (IDA) and $3.2 million from the Central Asia Water and Energy Program (CAWEP). “The REMIT Program supports Central Asian countries’ ambition to deepen energy cooperation and create a regional electricity market,” said Najy Benhassine, World Bank Regional Director for Central Asia. “This will enable more efficient use of energy resources, including cross-border deployment of clean energy, improve access to reliable and affordable electricity, and support jobs. By 2050, stronger regional connectivity could generate up to $15 billion in economic benefits.” Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia, added that REMIT will advance energy security and unlock private sector investment. “The first phase alone is expected to enable about 900 MW of new clean energy capacity, leveraging $700 million in private investment. This will pave the way for a more resilient and interconnected power system across this dynamic region,” he said. CDC Energia will lead the implementation of market and institutional activities, while national transmission companies will be responsible for infrastructure investments.