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Dreaming of Paris, Fighting for Power: Electricity in Central Asia

The COP28 UN Climate Change Conference in December 2023 highlighted the important role of developing countries – which include the Central Asian republics – in reducing dependence on fossil fuels thanks to the use of cleaner, renewable energy sources. Indeed, Central Asia is believed to have something to offer the world in the fight against climate change, being home to numerous sources of clean energy, including solar, wind, and hydropower. The "electricity ring" Last year, fossil fuels accounted for 95% of the total energy supply in the five Central Asian countries, according to the UN. To meet their commitments under the Paris Agreement and the transition to a low-carbon and sustainable energy system, the region will need to make a giant leap from fossil fuels to renewable energy sources. The main issue is that this transition must be made by different electrical grids across Central Asia, most of which are linked to the Central Asian Power System (CAPS). CAPS, also known as the "electricity ring," is a joint power transmission network connecting Uzbekistan, Tajikistan, Turkmenistan, Kyrgyzstan, and some southern parts of Kazakhstan. It was created in 1960, with the aim of ensuring the reliable transmission of electricity and steady cooperation between the republics. The energy systems of these regions are united into a single structure, which allows for parallel operation even when individual sections of the grid go down, meaning that if one part of the ring goes down, the other parts continue to function, improving reliability and efficiency. This system plays an important role in ensuring energy security and promoting cooperation and interaction. The creation and maintenance of any power system requires coordinated work by all participants. In the past, some countries temporarily withdrew from CAPS for various reasons, but in most cases, they sought to resume cooperation and their link to the “electricity ring.” Blackout On January 25, 2022, consumers in the ring experienced a blackout. The lights went out almost instantly in the south of Kazakhstan (the city of Almaty, as well as Turkestan, Kyzylorda, Almaty and Zhambyl regions), in Kyrgyzstan (the cities of Bishkek and Osh and the Issyk-Kul region) and Uzbekistan (the city of Tashkent, the Fergana Valley and Syr Darya, Jizzakh, Samarkand, Navoi and Kashkadarya regions). The widespread power outage paralyzed transportation, shut down important social infrastructure, and spurred popular discontent in the three countries affected. The Kazakhstani pundit Petr Svoik, a former professional power engineer who ran a thermal power plant (TPP), described the blackout as an unprecedented event, noting, however, that the technology worked perfectly and that the sudden loss of 1,500 MW of electricity did not lead to any major consequences. The Kazakhstani energy system consists of two insufficiently connected parts – north and south. The north is actually a continuation of the Russian power system, part of the Russian “energy bridge” - though, of course, it also has importance for the whole of Kazakhstan - whilst the south is part of the Central Asian ring. Looking at the...

Finance Hydro power Investments Energy Economy Strategy IDB Rogun HPP

Islamic Development Bank Supports Rogun HPP Project in Tajikistan

News agency Khovar has reported on the Islamic Development Bank (IDB) support in the construction of the Rogun Hydropower Plant (HPP) in Tajikistan. Dr. Muhammad Suleiman Al-Jasser, President of the IDB Group, announced this after a meeting with Tajik President, Emomali Rahmon. The meeting detailed Tajikistan's history towards economic development and outlined the country's priorities for the future. "The Islamic Development Bank has cooperated closely and successfully with Tajikistan for many years. Financing under this agreement has amounted to more than $900 million. We are satisfied with the current level of cooperation. One of the projects under consideration today is support for the Rogun Hydroelectric Power Plant project. The Islamic Development Bank has decided to sign an agreement with the Government of the Republic of Tajikistan,” Muhammad Suleiman Al-Jasser stated. Al-Jasser noted that IDB funds allocated to Tajikistan are directed to energy, education, industry, agriculture, transportation, and other key economic sectors. “We are confident that the current cooperation will be expanded and will serve as an invitation to other participants and investors,” Al-Jasser concluded.

Hydro power Investments Security Afghanistan Agriculture Economy Water Shortages

Is Afghanistan Ready for Dialogue with Central Asia on Water Issues?

Against the backdrop of the silence of Central Asian countries, as well as their lack of a coordinated position on the construction of the Qosh Tepa Canal in northern Afghanistan, the Taliban are moving forward with the project with growing confidence and without regard to their neighbors. Last October, at the ceremony to mark the launch of the second phase of the canal’s construction, Afghan Deputy Prime Minister Abdul Salam Hanafi called Qosh Tepa, “one of the most significant development projects in Afghanistan,” while its realization should remove all doubts about the capabilities of the new Afghan authorities, he added. There is no point in discussing the economic rationale for the canal; like other practical measures taken by the Taliban in the water and energy sphere, for Afghanistan, where 90% of the population is employed in agriculture, the provision of irrigation water is undoubtedly an important task. According to the UN, over the past four decades, desertification has affected more than 75% of the total land area in the northern, western, and southern regions of the country, reducing the vegetation of pasture land, accelerating land degradation, and impacting crop production. However, this socio-environmental problem affects the interests of all the peoples of Central Asia, which geographically includes the entire north of Afghanistan. It arose as an objective need for development, and solving it requires the combined efforts of all countries in the region, which is already on the verge of a serious water crisis that threatens not only economic development, but also the lives of millions of people. In general, the Taliban have emphasized their openness in matters of trans-boundary water management, but, so far, these are only statements. They are more motivated by political issues around their international recognition. That is why it is important for them to participate in global events, such as UN climate change conferences, but they have yet to take part in any climate talks. Hopefully, Afghan representatives will be invited to the COP29 Global Impact Conference in Baku this November, especially since one of the key topics of this forum will be a “just energy transition.” It would be interesting to hear what the Taliban have to offer. Though the authorities in Kabul have had some success in water regulation with Iran, the same cannot be said about Central Asia. This clearly owes to the fact that the five Central Asian republics have not taken a unified position on trans-boundary waters with Afghanistan. And their southern neighbor has taken advantage of this – to date, Kabul has not held any full-fledged official consultations with any Central Asian country on the Qosh Tepa Canal. However, just as bilateral formats will not yield results (unlike in Iran's case), the Taliban leadership will not be able to resolve water issues easily with the Central Asian countries. Afghanistan is not a party to the Central Asian Agreement on Cooperation in the Field of Joint Management on the Utilization and Protection of Water Resources from Interstate Sources. It was...

Legislation Central Asia Energy Hydro power Kyrgyzstan

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.

Economy Export/import China Central Asia Investments Kyrgyzstan Hydro power

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.

Energy Hydro power Central Asia Economy Uzbekistan

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.