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Kyrgyzstan’s New Tariff Policy Aim to Solve Problems in Energy Sector

Kyrgyzstan's minister of economy Daniyar Amangeldiev has told a press conference in Bishkek about his vision for the country's energy sector. A new tariff pricing policy has been presented to the Kyrgyz parliament, and will be adopted in May this year. According to Amangeldiev, the new electricity tariff policy will allow for new capacity to be introduced, and for the country to reduce the country's electricity deficit year by year until the country's power-demand needs are met. Electricity prices will rise by 10.8% as early as May 2024, and taking into account inflation, this increase will be permanent. Amangeldiev said that it will now be much easier to obtain permission from the authorities to build energy facilities in the country. Measures have also been taken to make it easier for investors to invest in Kyrgyzstan's energy sector. "With its adoption (the new law on tariff policy), those capacities that are planned will be introduced, and accordingly, every year we will reduce the shortage of electricity to fully meet the needs of the country, and possibly [lead to] electricity export," he commented, adding that this year in Kyrgyzstan developers have started 10 small hydropower plants (HPPs). Earlier, Kyrgyz president Sadyr Zhaparov said that in addition to the construction of large energy facilities, it's necessary to build small HPPs. In 2022, the World Bank allocated $50 million to Kyrgyzstan to modernize its energy infrastructure -- upgrading transformers, power lines and installing smart meters. A year later, the bank provided another $80 million in concessional loans (at below-market lending rates) to improve the power grid and support small-scale power generation. Last fall, the World Bank allocated $5 million to the republic for a feasibility study of the project of a new large HPP called Kambarata-1.

Investments Hydro power Kyrgyzstan Central Asia China Export/import Economy

Chinese Businesses Making Inroads into Kyrgyzstan’s Energy Sector

Chinese companies will repair two units of the Bishkek combined heat power plant (CHPP) and plan to invest more than $1 billion in other energy projects. Representatives of the Chinese company, TBEA visited the Bishkek CHPP, where it was decided that TBEA will send its specialists to overhaul the third and fourth power units, as well as train local specialists, the Ministry of Energy of Kyrgyzstan reported. TBEA chairman, Zhang Xin, together with the Kyrgyz Energy Minister, Taalaibek Ibraev, visited the Bishkek CHPP the previous day. The main topic under discussion was how to increase the electricity and heat capacity of the CHPP. Bishkek CHPP provides electricity to Bishkek and its suburbs, as well as heat to most apartment complexes in the capital. In 2017, TBEA built four new boiler units at the Bishkek CHPP with a total capacity of 300 MW. The Eximbank of China allocated a loan of $386 million back in 2013 for this purpose. After the accident at the CHPP in February this year, the Kyrgyz authorities decided to overhaul the old boilers. As a result, despite the corruption scandal in 2017, the same Chinese company will repair units three and four. Information on the reconstruction costs for the units has not yet been disclosed. When fully operational, Bishkek CHPP has 18 boiler units with a total capacity of 812 MW. Following the accident this winter, swathes of equipment failed and the total capacity of the CHPP was decreased by a large factor. Meanwhile, a Kyrgyz-Chinese business forum was held in Bishkek and attended by more than 60 companies, with contracts totaling $1.15 billion signed with various Chinese companies, mostly from the Xinjiang Autonomous Region. According to the Kyrgyz Government, a project to build a coal logistics center with a conveyor belt on the border of the two countries has been agreed upon and signed. The Chinese company, Dachenglongyuan, will invest $440 million in the project. The same company is reportedly to invest another $700 million to build a wind farm in southern Kyrgyzstan. Contracts for coal exploration and mining were also signed. Some experts attribute the accident at the Bishkek CHPP to low-quality coal mined in the Issyk-Kul region of Kyrgyzstan. One of President Japarov's campaign promises in 2020 was to end winter power outages and ensure the country's energy security. Despite the great opportunities for Chinese investors, however, many economists in Kyrgyzstan have warned against Kyrgyzstan's growing dependence on China. According to official data, as of January 1, 2024, Kyrgyzstan's debt stood at $6.3 billion, with about 40% of that owed to China's Eximbank.

Economy Uzbekistan Central Asia Energy Hydro power

UAE’s Masdar to Build Four Pumped-Storage Power Plants in Uzbekistan

According to a memorandum of understanding (MoU) signed at the eighth international Congress, Hydropower. Central Asia and the Caspian held in Tashkent, Masdar will build four pumped-storage power plants in Uzbekistan with a capacity of 1,600 MW. The MoU signed by Masdar (UAE) and JSC Uzbekhydroenergo will give Uzbekistan its first hydropower plants that use gravity-driven water flow that's been pumped uphill to generate electricity when it's released. Thanks to the plant, Uzbekistan will be able to better manage issues with interruptions to its electricity supply. The large-scale hydropower project will be the first of its kind in Central Asia. Facilities built in the regions of Jizzak, Karakalpakstan, and Tashkent will have a total capacity of 1,600 MW capable of generating 2.8 gigawatt-hours (GWh) of electricity. Uzbekistan has been collaborating with Masdar for several years in the fields of solar and wind energy. According to the International Hydropower Association (IHA), pumped-storage hydroelectric power plants account for more than 90% of the world's installed energy storage capacity. By 2030, their total global capacity is forecast to reach 240 GW. in regard to the country's prospects on hydropower, Nodirbek Akchaboev, a department head at JSC Uzbekhydroenergo, stated, "Uzbekistan is striving to create a long-term and sustainable energy system. Uzbekhydroenergo acts as a locomotive to achieve these goals. We have set a goal to increase capacity up to 6,000 MW by 2030, and increase the hydro share in the generation of electricity 25% to 40%." During the congress, Uzbekhydroenergo outlined plans to build 18 new hydroelectric power plants with a capacity of 1,630 MW in addition to 28 small and micro-hydropower plants with a capacity of 28 MW. Fifteen existing hydro plants will be modernized. Thus, the total capacity of Uzbekistan's hydropower assets will rise to almost 6,000 MW; 3.7 times higher than the current output. Hydropower has now become the most widespread type of renewable energy and provides almost a quarter of the world's energy consumption. It therefore generates enough sustainable energy for over one billion households and 90% of the top 25 nations by population depends on this system. Furthermore, the development of the energy-transmission grid is becoming increasingly critical under current climate change conditions that require increased use of alternative energy sources.

Economy Hydro power Kyrgyzstan Central Asia

Climate Change Threatens Kyrgyzstan With Potential Energy Crisis

With electricity serving as Kyrgyzstan's main source of heating for a third of the country's population, national power consumption is tripling during the winter months, according to the Kyrgyz Energy Ministry. The ministry has drafted a law requiring "efficient and rational" use of electricity. Also, according to the draft law, authorities should develop efficient ways to generate electricity that take into account global climate change. "At present, the shortage of domestic energy resources and constantly rising prices for imported hydrocarbons are constraining factors in increasing production and fully meeting the needs of the population and the real sector of the republic's economy in the power grid," reads the background to the draft law. According to the ministry, the country's leadership has laid out the task of creating conditions for introducing progressive technologies, equipment and materials into Kyrgyzstan's energy sector that can ensure a qualitative improvement in the efficiency of domestic energy consumption. The background to the draft law states that in order to achieve this, the first priority is a system of strict record-keeping of electricity consumption by private companies and the population. The Ministry of Energy investigated and found that 35% of Kyrgyz people use electricity for space heating in winter. That's because electricity is cheaper than traditional energy resources such as gas and coal. Officials argue that the low level of electricity tariffs for the population does not incentivize energy conservation. International observers have repeatedly said that increasing the price of electricity is a necessity, but the country's authorities don't want to take unpopular measures. The Ministry of Energy believes that if every citizen is concerned about saving electricity and using it rationally, the country's dependence on power imports will be reduced. As the Times of Central Asia has previously reported, Kyrgyzstan has a serious imbalance in its energy system, despite the country's large water reserves. Electricity consumption grows by six% every year, forcing the authorities to import electricity from neighboring countries during the winter. But by the 2030s, the situation could seriously deteriorate. That's because most of the country's hydroelectric power plants, which generate 78% of Kyrgyzstan's electricity, are located on the Naryn River. Climate scientists predict that the flow of Kyrgyzstan's main river will decrease by 15-50% after 2030. That means the already low water levels in Kyrgyzstan's largest reservoirs could become even lower. This year, Kyrgyz authorities seriously intend to begin construction of a new large power plant, Kambarata-1, which will also be located on the Naryn River. The cost of the project is more than $3 billion. The new draft law from the Ministry of Energy notes that the Kyrgyz energy sector is highly vulnerable because the main power facilities depend on the flows of only one river. And the persistently warmer temperatures brought by climate change could worsen the industry's already considerable problems. That's why more small hydropower plants (HPPs) need to be built in Kyrgyzstan. Kyrgyz President Sadyr Japarov has repeatedly said that for energy security, more small HPPs need to be...

Water Shortages Energy Kyrgyzstan Hydro power

Kyrgyzstan’s Toktogul Reservoir May Hit “Dead” Level; Blackouts Possible

Kyrgyzstan's Energy Ministry has said it will limit electricity consumption "by force" as water in the country's main reservoir becomes increasingly scarce. In addition, major overhauls of the country's main energy facilities are planned for this year, which will also affect power output and consumption. According to official data, the volume of water in the Toktogul Reservoir currently stands at 7.7 billion cubic meters, versus a normal level of 17.3 billion cubic meters. If the water volume decreases by another two billion cubic meters, the Toktogul Hydroelectric Power Plant (HPP) will cease to produce power. "This is a deteriorating indicator. Because of high consumption, the system automation of load limitation is working. This year, due to [demand] imbalance, it is working in the evening peak hours. Therefore, in some areas there may be blackouts. The norm for March is 54 million kilowatt-hours per day, but we are already exceeding this mark. If this rate continues, there is a threat that we will reach the level of "dead water" in the Toktogul Reservoir," said Deputy Energy Minister Talaibek Baigaziyev. The Toktogul HPP cascade includes two hydroelectric power plants: the 1,200 megawatt (MW) Toktogul HPP and the 800MW Kurpsay HPP. Toktogul HPP is the largest plant in Kyrgyzstan, generating 40% of the country's electricity. Starting from March 5th, one of the units of the Toktogul HPP and one units of the Uch-Korgon HPP, located on the Naryn River, will be sent for repair and refurbishment. The Uch-Korgon HPP was commissioned in 1962, and has not had an equipment update since then. According to the Ministry of Energy, the equipment and hydraulic structures of this station are thoroughly outdated and in poor condition. "In such a situation, Kyrgyzstan's energy system will face a power shortage of 290 MW," the Energy Ministry said. Kyrgyzstan is being assisted in repairing the hydropower plants by the Asian Development Bank, which has allocated more than $157 million in loans and grants. It's expected that both hydroelectric units will be repaired by the end of 2024. Just last month an accident occurred at the main thermal power plant of Bishkek, which is also one of the most powerful generating facilities in the country. While the breakdown was remedied reasonably quickly, generation of electricity at the combined heat-power plant (CHPP) was severely curtailed. The authorities have scheduled a major overhaul of the Bishkek CHPP for May-June this year. Regarding the work, engineers released a statement urging consumers to "be careful with electricity and not to turn on several energy-intensive appliances at the same time, especially during peak hours from 06:00 to 09:00 in the morning, as well as from 18:00 to 21:00 in the evening." Due to extremely cold weather and the accident at the CHPP, many people are using more electricity to heat their homes, resulting in increased consumption to 70 million kilowatt-hours per day from a previous level of 54 million.

Hydro power

Two Hydrometric Stations Open On Uzbekistan, Tajikistan Border

Two hydrometric stations have been opened along the cross-border Great Fergana Canal and North Fergana Canal, according to a report by news portal Gazeta.uz. Construction of the stations was facilitated by the Swiss government’s Blue Peace Central Asia initiative. The project was started in 2017 in response to the need for a cross-border strategy for water management in Uzbekistan and Tajikistan. The hydrometric stations were opened as part of the sixth meeting of the Uzbekistan-Tajikistan working group on the coordinated use of the transnational rivers’ water resources in Central Asia. The two countries signed a protocol on the automated computations and real-time transfer of cost data to Tajikistan and Uzbekistan from the two stations. The Gazeta.uz report claims that Switzerland has been assisting water reform initiatives in Tajikistan and Uzbekistan for nearly 20 years, employing an integrated approach to national water resources management. Blue Peace Central Asia supports the creation of guidelines for regional cooperation aimed at ensuring water security for the entire population of Central Asia. Recently, the data source Meteojurnal released statistics regarding the use of Amudarya water by Central Asian nations in 2023, based on information from the scientific information center of the Central Asian interstate water management coordination commission (Afghanistan was not taken into account). The largest user of river water was Turkmenistan, which diverted 42% of river water (20 cubic kilometers) to its own country. In second place was Uzbekistan, which used 38.4% of the river’s water (about 18.3 cubic kilometers). The next largest user, Tajikistan, accounted for 19.8% of water (more than 9.4 cubic kilometers).