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Finance Investments Energy Banking Security Economy ADB

ADB to Advise Kazakhstan’s Energy Ministry on Hydropower Development

The Asian Development Bank (ADB) has signed a transaction advisory services agreement with the Kazakh government for its Hydropower Development Program, which aims to attract the private sector to design, finance, construct, operate, and maintain the country’s hydropower projects. According to the agreement, ADB will work with Kazakhstan's Energy Ministry to conduct pre-feasibility studies, prepare auction documents and a template power purchasing agreement, and attract competitive offers to crowd investors. ADB will help the ministry prepare and auction hydropower projects with private sector participation in the southeast, with a potential cumulative capacity of around 600 megawatts across the Alakol, Balkhash, and Irtysh/Zaysan basins. The agreement was signed on July 26 in London by Kazakhstan’s minister for energy, Almasadam Satkaliyev, and ADB’s head of public–private partnerships, Cleo Kawawaki. Emphasizing that supporting Kazakhstan in developing renewable energy sources is a priority for ADB, Ms. Kawawaki commented: “ADB’s focus is to assist the country’s efforts to address the impacts of climate change, promote decarbonization, and facilitate sustainable economic growth. This will help Kazakhstan achieve its goal of increasing its renewable energy capacity, reduce carbon emissions, and enhance the country’s energy security.” Satkaliyev also proposed collaborating with ADB to attract technological support, investments, and grants to reduce methane emissions in all sectors of Kazakhstan’s economy, including the oil and gas industry.

Russia Export/Import Security Oil & Gas Economy Social Gazprom Energy Investments Finance

Kyrgyzstan’s Capital to Switch to Russian Gas

At the St Petersburg International Economic Forum 2024, Gazprom Export LLC and Gazprom Kyrgyzstan LLC signed a long-term contract for the supply of natural gas by Russia to Kyrgyzstan. Deputy General Director of Gazprom Kyrgyzstan Arzamat Aldayarov announced that Russian Gazprom is now set to double its supplies of 'blue fuel' to Kyrgyzstan from 2025-2040. He stated that the Bishkek Thermal Power Plant will switch completely to gas from 2026. In addition, the Kyrgyz authorities are planning to launch several more stations near Bishkek, which will also operate on Russian raw materials. Arzamat Aldayarov added that the development of a five-year roadmap for providing gas throughout Bishkek was imminent and referencing plans to build 250–300 kilometers of gas pipelines annually, connecting 13–15 thousand apartment buildings to supplies, said, “Currently, a lot of electricity is spent on heating, which puts pressure on city networks. We are looking for other sources of heat. We want to completely gasify residential areas and switch them to gas heating."

Energy Economy Electricity supply

How Limits on Electricity Use will Impact Uzbekistan

This year, Uzbekistan implemented reforms aimed at modernizing and optimizing energy consumption, including a new scheme introduced by the Cabinet of Ministers of the Republic of Uzbekistan. Entitled “Additional measures to introduce market mechanisms in the fuel and energy sector,” the scheme comprises a new pricing structure for fuel and energy resources for 2024-2025, alongside revised basic standards for monthly household electricity and natural gas consumption, starting May 1, 2024. Under the new regulations, residents must pay 450 UZS (3.6 cents) for each kilowatt used up to 200 kWh per month and 900 UZS (7.2 cents) for 201 kWh to 1,000 kWh per month. If energy consumption increases, the price changes accordingly. Household consumers living in apartment buildings and dormitories equipped with centralized electric plates for cooking will be charged 225 UZS (1.8 cents) for up to 200 kWh per month, from 201 kWh to 1,000 kWh – 450 UZS (3.6 cents). Negative reaction to the move has been widespread with numerous complaints posted on social networks such as Instagram and Facebook, demanding the cancellation of the limit of up to 200 kWh. One of the key protests is that the number of family members was not considered when setting the limit and that it will need to increase in the colder months of autumn-winter. Residents also commented they will need to save up to pay for their bills and one Facebook post commented that the 200-kWh limit should be cancelled or at least increased to 500 kWh. In response to public outcry, Uzbekistan's Ministry of Energy issued an official statement announcing that there was no reason to revise its decision and reported that since 71% of the population consumed less than 200 kW of electricity in June, the limit was realistic. When interviewed by TCA on the situation, Umida Ahadova from the Navoi region, commented, “Four people live in our family, and electricity is mainly used for housework. Since it is summer, we often use the air conditioner to cool the house. But the electricity consumption rarely exceeds the set limit of 200 kW." Another interviewee Roziboyeva, who shares a rented house in Tashkent with seven friends said, “Eight girls have lived in a 3-room apartment for almost a year, but our energy consumption is only slightly more than 150 kW. That said, we don’t use air conditioners to heat and cool the house." According to the ministerial statement , 1 kWh of electricity costs 895 UZS (7.1 cents) (without VAT). The state reimburses 552.4 UZS (4.4 cents) for each kWh of electricity supplied to the population within the basic norm and 102.1 UZS (0.81 cents) from 201 kW to 1000 kWh. “It should be said that consumers' electricity savings have increased due to increasing tariffs, " claimed the ministry. " As a result, the load on the system is reduced, people’s electricity systems are cut, and accidents are also decreasing." Research conducted by Asia-Plus last year showed that Kazakhstan has the highest electricity tariff among Central Asian countries....

Waste Processing Social Economy Healthcare Energy Investments Finance

Kazakhstan to Increase Municipal Waste Processing

On July 24, Kazakhstan launched its first project to build a technological eco-park for processing solid municipal waste and producing electricity from biogas. According to the Ministry of Ecology and Natural Resources of Kazakhstan, the new facility will be equipped to sort 120 thousand tons of solid municipal waste and 120 thousand tons of large-sized waste, and process 80 thousand tons of organic waste per year. In response to an instruction by the head of state in February to secure investment for the construction of waste processing plants in Kazakhstan, the government has secured a pool of 94 investment projects to increase municipal waste processing from 1 million to 2.2 million tons annually. In March, the government announced plans to build 37 new municipal solid waste processing plants and modernize eight existing plants. To support the initiative aimed to improve the country's environment, the government has given approval for an Industrial Development Fund, with an interest rate of 3 percent and loan terms from 3 to 15 years, for projects related to waste management, including the purchase of rubbish trucks and the launch of sorting lines and processing facilities. Prime Minister Olzhas Bektenov reported that recycling solid waste is profitable worldwide and Kazakhstan too, must exploit its potential in this field.

Oil & Gas Turkey Energy

Turkey Seeks Deal on Turkmen Gas

Turkey is at the final stage of negotiations on an agreement to transit Turkmen gas, Turkish Minister of Energy and Natural Resources Alparslan Bayraktar has announced in an interview with Bloomberg. Bayraktar said that “Turkey is studying the possibility of importing gas from Turkmenistan through a gas swap via neighboring Iran,” adding that a final agreement could be reached during an upcoming visit to Turkmenistan. It is expected that gas supplies from Turkmenistan will be carried through Iran in the amount of 1.5-2 billion cubic meters per year. In addition, the Minister did not rule out the possibility of using the Iran-Azerbaijan gas pipeline to deliver “blue fuel” to Turkey, from where it will be pumped into the Trans-Anatolian gas pipeline (TANAP). In March of this year, Ashgabat and Ankara signed a memorandum of cooperation in the field of natural. In early June, the state oil company of Azerbaijan (SOCAR) and the Turkish state gas company, Botas signed a cooperation agreement to supply Turkmen gas through Azerbaijan and third countries to Turkey.

Energy

Saudi and Chinese Companies to Cooperate on Wind Power Projects in Uzbekistan

The Saudi company ACWA Power has announced that it has sold 35% of its stake in two wind power plants in Uzbekistan to China Southern Power Grid International. The Bash and Dzhankeldy plants in the Bukhara region are currently under construction. The deal is the first joint investment project between ACWA Power and China Southern Power Grid International in renewable energy sources in Central Asia. The cost of building the two wind power plants, which have a total capacity of 1 GW, is $1.3 billion. The agreement was signed on July 17 by Uzbekistan's Minister of Energy, Jorabek Mirzamahmudov. The terms of the deal were not disclosed. In December 2022, ACWA Power signed agreements with Chinese partners to finance, invest in, and build renewable energy projects in Saudi Arabia and ACWA Power’s Belt and Road Initiative countries. The Times of Central Asia has previously reported on projects being implemented by ACWA Power in Uzbekistan.