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Hydropower Development in Kyrgyzstan Gets Boost from EDB

The Eurasian Development Bank (EDB), the Ministry of Economy and Commerce, and the Ministry of Energy of Kyrgyzstan have signed a trilateral Memorandum of Cooperation for the Suusamyr-Kokomeren Hydropower Plant (HPP) Cascade Project. The memorandum outlines the EDB’s commitment to providing financial support for the preparation of project documentation, including a pre-feasibility study. The agreement focuses on developing the financial and economic model for the project, estimating capital costs, evaluating social and environmental impacts, and determining technical solutions and government support measures needed for its success. The Suusamyr-Kokomeren HPP Cascade will be located on the Kokomeren River and is expected to play a pivotal role in Kyrgyzstan’s energy sector. The cascade will consist of three hydropower plants with a combined capacity of 1,305 MW, meeting the country’s increasing electricity demands. Sanjar Bolotov, Kyrgyzstan’s Deputy Minister of Economy and Commerce, emphasized the significance of the project, commenting: “This major project will not only meet the country’s domestic electricity needs but also position Kyrgyzstan as a leading exporter of clean energy in the region.” The EDB is a multilateral development bank that includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan as member states. It is dedicated to investing in regional development initiatives across Eurasia. The Suusamyr-Kokomeren HPP Cascade is part of the EDB’s flagship investment initiative, the Central Asian Water and Energy Complex. This mega-project aims to strengthen water and energy cooperation among Central Asian countries while addressing local socio-economic challenges.

Power generation Transcaspian Energy Route Asian Infrastructural Investment Bank renewable energy sources Green Energy Solar Energy Hydro power

Mirziyoyev Proposes Green Energy Development Program for Central Asia

On September 25-26, the annual meeting of the Board of Directors of the Asian Infrastructural Investment Bank (AIIB) was held in Samarkand, Uzbekistan. The ninth meeting of the Board was devoted to the theme “Creating Sustainable Infrastructure for All.” Current issues on the agenda of the global economy were considered, and strategic programs and plans for infrastructure development in Asia and other regions of the world were discussed. About 2,000 representatives from more than 100 countries participated in the summit. Uzbekistan became a member of AIIB in November 2016, and in recent years, it has become one of the bank's biggest beneficiaries. Uzbek President Shavkat Mirziyoyev gave a speech on the first day of the meeting. “The complex geopolitical situation, global economic instability, food and energy resources scarcity, poverty, and environmental problems are becoming increasingly acute. For instance, the average global temperature is projected to rise by 1.5 degrees Celsius by 2040; however, we are concerned that, based on current trends, this could happen as early as 2030. A quarter of the world’s population lacks clean drinking water. As climate change accelerates, food shortages have become a global threat. As a result, about 800 million people in the world live in extreme poverty,” Mirziyoyev said. Mirziyoyev noted that the poverty rate in Uzbekistan has been reduced from 23% to 11%. This year, the aim is to reduce this indicator to 9%, and by 2030, it will be halved. Furthermore, in the last eight years, the enrollment of children in preschool education has increased from 27% to 74%, and higher education has increased from 9% to 38%. It plans to invest $2 billion to open 100 new schools of the most advanced standards in all cities and villages yearly. Another issue that Mirziyoyev paid attention to is logistics, interruptions in the product supply chain, and the increase in the price of raw materials and consumer goods. The head of state noted that all this will sharply increase the load on the existing infrastructure and will be a significant obstacle to global economic development. According to experts, by 2030, the world will need $15 trillion of investment for new infrastructure. Also, foreign investments have decreased by 10% over the past two years, and the value of financial resources globally has almost doubled. Mirziyoyev said that projects worth $200 million for developing medium-sized cities and $130 million for improving infrastructure in rural areas are launched in cooperation with the AIIB. To develop the “green” economy, it is aimed to reach 40% of “green” energy sources by 2030. In the coming years, another 18 gigawatts of solar and wind power, 3 gigawatts of hydropower plants, 5 gigawatts of energy storage capacity, and $5 billion worth of power grids will be implemented. “I would like to note that neighboring countries have also started major projects on renewable energy. We are taking great steps to make Central Asia, a rich renewable energy source, a major exporter of ‘green’ energy into world energy markets in the coming years....

HPP Industry Energy Hydro power Finance

Three Hydraulic Units at Tajikistan’s Kairakkum Hydropower Plant Launched After Modernization

On September 7, three of the six power-generating units were put into operation after modernization at the Kairakkum hydropower plant (HPP) in the city of Guliston in Tajikistan’s northern Sughd region. Located on the Syr-Darya River, the Kairakkum HPP consists of six hydropower units, the last of which was commissioned in 1957 and has a design capacity of 21 MW. A project to modernize the aging plant was launched in August 2019. Over the past five years, hydro units Nos. 4, 5, and 6 have been completely renovated, and their capacity has increased from 19 to 29 MW. The power plant’s dam has been reinforced as part of the project. Currently, work is ongoing on rehabilitating hydro units No. 2 and 3. After the complete modernization planned for 2026, the average annual electricity production at the Kairakkum HPP will increase from 580 million kWh to 850 million kWh. It was earlier reported that the Kairakkum HPP rehabilitation project received $196 million in financing from the European Bank for Reconstruction and Development (EBRD), Green Climate Fund (GCF), Climate Investment Funds, and European Investment Bank (EIB). The financing comprised a $88 million EBRD loan, a $37 million EIB loan, a $50 million GCF loan and grant, and a $21 million Climate Investment Funds loan. In recent years, Tajikistan, which has abundant hydroenergy resources, has focused on hydropower generation projects — the largest of which is the construction of the giant Rogun dam — to solve the problem of chronic power shortages and begin electricity exports to neighbors in the region.

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A Model of Cooperation: Kyrgyzstan Selecting Dam Type for Kambarata-1 Hydropower Plant

On September 4, in Bishkek, Kyrgyzstan’s Cabinet of Ministers and the World Bank organized a roundtable on dam type selection for the country’s flagship Kambarata-1 Hydropower Plant (HPP). As the Kyrgyz Ministry of Energy reported, Swiss engineering company AFRY presented possible dam types for the flagship energy project at the meeting. A feasibility study will be prepared by May 2025 based on the type of dam chosen. According to Maksudjon Safarov, Senior Energy Specialist with the World Bank, the institution is financing comprehensive preparations for the Kambarata-1 HPP's construction. “The Swiss company AFRY is preparing the project’s feasibility study, with world-class experts involved in the work to ensure that the project is efficient, environmentally friendly, and sustainable," Safarov stated. The Kambarata-1 HPP will be situated in the upper reaches of the Naryn River in Kyrgyzstan. Its installed capacity will be 1,860 megawatts, with an average annual generation of 5.6 billion kilowatt-hours of electricity. The preliminary construction cost for the project is more than $4 billion. At the roundtable, Deputy Chairman of the Kyrgyz Cabinet of Ministers, Bakyt Torobayev, emphasized that time is critical in developing the Kambarata-1 HPP. “As part of the construction, trilateral agreements were signed between the Ministries of Energy of the Kyrgyz Republic, the Republic of Kazakhstan, and the Republic of Uzbekistan. This is a unique case when three countries in the region come to a common understanding and support for the project. We are confident that joint work will create a high-quality project to provide Central Asia with clean and renewable energy, improve water and energy resources, and strengthen regional cooperation." Kyrgyz Energy Minister Taalaibek Ibrayev noted significant progress in the ongoing preparations. “To date, several important works have already been completed. On August 30, the construction of a 1,388-meter transport tunnel was completed. Work is underway to build 15 km of concrete roads. We are working to provide electricity [for the future construction site], with 80% of overhead transmission lines now complete. Completion of a 110 kv power transmission line and a substation is scheduled for the end of 2024. Construction of a bridge across the Naryn River is underway, and at the same time, a workers' camp is being built. All work is going according to plan, and we are confident that all preparatory stages will be completed by next May,” the Minister stated. To support the project, a Donor Coordination Committee for constructing Kambarata-1 HPP was established at the Kyrgyz Republic International Energy Investment Forum, held in Vienna on June 10, 2024. The Committee comprises major international financial institutions and development partners, including the World Bank, the OPEC Fund, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, and the European Bank for Reconstruction and Development.

Energy Rogun HPP World Bank Industry Economy Investments Hydro power Finance

World Bank Considers Loan for Tajikistan’s Rogun Hydropower Plant

Tajikistan's Deputy Minister for Finance, Yusuf Majidi, has announced that the World Bank will consider financing the development of the Rogun hydroelectric power plant. According to him, the bank can allocate $650 million for this project in September this year. $250 million has been allocated as preferential loans; starting in 2025, the station's construction will be financed by other investments. Majidi specified that the construction of the hydroelectric power plant (HPP) is also financed by the Islamic Development Bank and Arab funds; according to preliminary data, this is about $550 million. When the Rogun HPP reaches full capacity, about 70% of the electricity produced will be exported to other Central Asian countries. According to the Eurasian Fund for Stabilization and Development (EFSD), financing the Rogun HPP is one of the main risks to Tajikistan’s budget and debt sustainability. The EFSD notes that a possible increase in the cost of hydropower construction could reduce funding for other critical infrastructure projects and social spending. Rogun is located 110km from Dushanbe on the Vakhsh River, and is the largest in the region. Its construction began in 1976, but it was destroyed after the collapse of the USSR. Later, Tajikistan continued work on the construction of hydroelectric power plants at its own expense and with the help of international funds and organizations, and so far, two of the six units with a capacity of 600 MW provided for in the project have been put into operation. The third is scheduled for 2025.

transboundary water Hydro power Energy Central Asia Security Strategy Irrigation

Uzbekistan to Supply Extra Water to Kazakhstan for Irrigation

Kazinform has reported that following a meeting in Astana between Kazakh Minister of Water Resources and Irrigation, Nurzhan Nurjigitov, and Uzbek Minister of Water Management Shavkat Hamroev, Uzbekistan is to provide Kazakhstan with an additional 500 million cubic meters of water until the end of the irrigation season. Since April 1, Uzbekistan has supplied more than 4 billion cubic meters of water to Kazakhstan through the Syr Darya. It had been previously agreed that Uzbekistan would provide Kazakhstan with 3.7 billion cubic meters of water within six months but the Uzbek side fulfilled its obligation in just 4 months. The report states that the key goal was to fully satisfy the demand for irrigation water from farmers of Kazakhstan's southern regions and today, the Shardara Reservoir holds 1.5 billion cubic meters of water, almost 500 million more than last year. A total of 4 billion cubic meters of water entered the Shardara reservoir. Commenting on the success of the project, the official representative of the Ministry of Water Resources and Irrigation of Kazakhstan, Moldir Abdualieva stated, “Due to the preliminary agreement with our neighbors on the working order of the Toktogul and Bahri-Tajik reservoirs, water regularly flows to the Kazakh part of the Dostlik interstate canal. Now, 90 cubic meters of water per second comes to the country through this channel. This is enough to fully supply the farmers of the Turkestan region with irrigation water,”