Kyrgyzstan - The Times Of Central Asia

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Alternative Energy

Kyrgyzstan Turns to Alternative Energy to Address Power Deficit

Expanding the use of alternative energy sources is key to overcoming Kyrgyzstan’s persistent electricity shortages, Deputy Chairman of the Cabinet of Ministers Bakyt Torobayev said during a meeting at the Ministry of Energy on March 27. Torobayev acknowledged the country’s chronic power deficit and underscored the need for investment in renewable energy development. “Increasing power generation is today’s top priority,” he stated. In response to the ongoing energy crisis, the Kyrgyz government declared a state of emergency in the energy sector from August 1, 2023, to December 31, 2026. The move was intended to accelerate emergency measures to counter the impacts of climate change, reduced water flows in the Naryn River, a major source of hydropower, rising energy demand, and limited generating capacity. Power Imports Fill the Gap Although Kyrgyzstan has the potential to generate 142 billion kilowatt-hours (kWh) annually, current production stands at just 14 billion kWh, approximately 10% of its hydropower capacity. According to Energy Minister Taalaibek Ibrayev, the country currently generates 3,450 megawatts of electricity, while demand has risen to 3,600 megawatts. In 2024, Kyrgyzstan consumed 18.3 billion kWh, an increase of 1.1 billion kWh over the previous year. Hydropower plants accounted for 12.77 billion kWh, while coal-fired thermal plants produced 1.76 billion kWh. Small private hydropower plants added 156.2 million kWh, and solar installations contributed 0.17 million kWh. To close the gap, Kyrgyzstan imported 3.63 billion kWh of electricity in 2024, an increase of 141.7 million kWh from 2023. Expanding Generation Capacity To alleviate the crisis, the government has launched several major hydropower construction projects. The Ministry of Energy announced ongoing work to install a second hydroelectric unit at the Kambarata-2 Hydropower Plant (HPP). The plant is designed for three units with a combined capacity of 360 megawatts (120 MW each). Currently, only the first unit is operational. The addition of the second unit will significantly enhance the plant’s output. Meanwhile, construction has also begun on the much larger Kambarata-1 HPP on the Naryn River. When completed, it will become Kyrgyzstan’s largest hydropower facility, with a projected capacity of 1,860 megawatts and an expected annual output of 5.6 billion kWh, enough to substantially address the country’s energy shortfall. Embracing Solar and Wind As part of its energy diversification strategy, Kyrgyzstan has also initiated solar and wind energy projects. In 2024, the country began building a 400-megawatt solar power plant and a 100-megawatt wind farm, marking significant steps toward reducing reliance on imported electricity and fossil fuels.

Climate Change

New UNEP Atlas Highlights Kyrgyzstan’s Climate Vulnerability

Amid intensifying climate impacts, the UN Environment Programme (UNEP) released its Atlas of Environmental Change for Kyrgyzstan on March 26, offering a comprehensive assessment of the country's growing environmental risks and response strategies. Warming at Twice the Global Rate According to the Atlas, average annual temperatures in Kyrgyzstan have increased by 1.2°C between 1960 and 2023, double the global average of 0.6°C. This accelerated warming has exacerbated water scarcity and the likelihood of natural disasters, a trend expected to intensify in the coming decades. While water availability declines, demand continues to rise, particularly in agriculture. The report stresses the urgent need for robust climate adaptation measures, including reducing irrigation losses, upgrading early warning systems, and improving pasture management. Currently, an estimated 70% of Kyrgyzstan’s pastures are degraded. Declining Water Resources Hydropower accounts for up to 93% of Kyrgyzstan’s electricity generation. But as the climate shifts, rainfall patterns, snow cover, and glaciers are changing, threatening the water inflows that power these systems. Water flow into the Toktogul Reservoir, which feeds the country’s largest hydroelectric plant, could decrease by as much as 18.8% by 2050. This poses a serious threat not only to energy security but also to regional cooperation, as Kyrgyzstan lies upstream of many major Central Asian rivers. The report underscores the importance of transboundary water management. Disasters on the Rise Natural disasters are also becoming more frequent and severe. On average, Kyrgyzstan experiences around 200 emergencies per year, 90% of which are linked to natural hazards such as floods, earthquakes, mudslides, rockfalls, and avalanches. In 2022 alone, nearly 150 lives were lost to natural disasters. Between 2012 and 2018, the average annual economic loss from such events reached $27 million. Conservation Achievements Despite the mounting risks, the Atlas also highlights Kyrgyzstan’s environmental progress. Forest cover has increased from 6.2% in 2000 to 6.9% in 2023, a significant feat given the country's mountainous terrain. Protected areas have expanded from 0.5 million hectares in 2000 to 1.5 million hectares, with plans to increase this to 10% of national territory by 2040, safeguarding up to 65% of species listed on the IUCN Red List. All forests in Kyrgyzstan are protected from commercial logging. Notably, the creation of the Khan Teniri Nature Park has expanded snow leopard habitat in the Central Tien Shan mountains by 40%. A Tool for Climate Policy The UNEP Atlas offers Kyrgyz policymakers a vital evidence base for sustainable environmental management and climate adaptation. It is designed to guide future strategies as the country faces mounting ecological and socio-economic pressures.

Economy

Kyrgyzstan Begins Domestic Printing of National Currency Banknotes

For the first time since gaining independence, Kyrgyzstan has begun printing its national currency, the som, within the country. Previously, Kyrgyz banknotes were produced in various European countries. The new notes are produced by the Bishkek-based Open Joint Stock Company Uchkun. Starting with Small Denominations Chairman of the National Bank Melis Turgunbayev announced that production has begun with small-denomination bills. This approach will enable a quicker replacement of worn or damaged notes scheduled for withdrawal from circulation. Turgunbayev stressed that the new banknotes adhere to the highest international standards for counterfeit protection. A Modernized National Printing Facility Uchkun has recently undergone a major modernization effort, acquiring state-of-the-art printing equipment. In addition to currency, the facility now produces passports, excise stamps, and educational materials. According to Uchkun's Director Bakytbek Sultanov, the enterprise has already begun printing passports and excise stamps. He stated that in his opinion the security features of Kyrgyz passports rank among the top ten globally for protection against counterfeiting. In 2024 alone, Uchkun produced over 770,000 passports and nearly one million books, marking a significant step forward in Kyrgyzstan’s self-reliance in secure printing technologies.

Climate Change

Artificial Glaciers Created in Kyrgyzstan for Sustainable Agriculture and Climate Change Adaptation

As the international community observed the first-ever World Day for Glaciers on March 21, a project led by the Food and Agriculture Organization of the United Nations (FAO) has demonstrated how artificial glaciers can help rural communities in Kyrgyzstan adapt to the effects of climate change. As part of the FAO initiative, seven artificial glaciers were constructed in villages across the Batken region of southern Kyrgyzstan in late autumn 2024. Over the winter, these glaciers accumulated more than 1.5 million cubic meters of ice. As spring temperatures rise, the ice begins to melt, providing essential irrigation water for downstream agricultural lands. According to FAO experts, more than 1,750 hectares of land, equivalent to 2,451 football fields, can be irrigated using furrow irrigation. If modern systems are introduced, this could expand to as much as 15,000 hectares. These artificial glaciers are relatively simple structures designed to collect and freeze water in winter for agricultural use in summer, including for irrigation and livestock. On average, one glacier can support irrigation on 300 to 500 hectares. “The key is to choose the right location,” said Matraim Jusupov, FAO expert on water-saving technologies. “We channel water from a mountain spring through a pipeline ending in a vertical pipe 10-15 meters high. The elevation difference generates pressure, which allows us to spray water into the air. At sub-zero temperatures, it freezes and gradually forms an ice cone.” To build the glaciers, 6,956 meters of pipeline were laid. FAO supplied construction materials and technical guidance, while the work was carried out by local residents. The FAO office in Kyrgyzstan has since developed universal guidelines for building artificial glaciers and distributed them across the country. Based on this experience, new glacier construction is already underway in other regions. Global Glacier Melt According to the World Meteorological Organization (WMO) and the World Glacier Monitoring Service (WGMS), five of the past six years have seen the fastest glacier retreat ever recorded. The years 2022–2024 marked the largest three-year loss of glacier mass in history. Once regarded as “eternal ice,” many glaciers are now unlikely to survive the 21st century. There are more than 275,000 glaciers worldwide, covering approximately 700,000 square kilometers. Along with ice sheets, glaciers store about 70% of the planet’s freshwater. Their depletion threatens water supplies for hundreds of millions of people. In response to this growing crisis, the UN General Assembly declared 2025 the International Year of Glaciers’ Preservation and designated March 21 as the annual World Day for Glaciers. The initiative aims to raise awareness of the critical role glaciers play in the global climate and hydrological systems, and their significance to economic and ecological stability. UNESCO and WMO are leading the global coordination effort, supported by over 200 organizations and 35 countries. Kyrgyzstan’s Initiatives A Kyrgyz delegation led by Dinara Kemelova, the President’s Special Representative for the Five Years of Action for Mountain Regions Development, participated in World Day for Glaciers events at UNESCO headquarters in Paris on March 20-21. The meetings focused on...

Infrastructure Development

EU and EBRD to Fund Irrigation Improvements in Kyrgyzstan

On March 17, European Commissioner for International Partnerships Jozef Síkela arrived in Kyrgyzstan, where he met with President Sadyr Japarov to discuss bilateral cooperation and sustainable development initiatives. During the meeting, Japarov emphasized the importance of strengthening trade, economic, and investment ties between Kyrgyzstan and the European Union (EU). “We highly appreciate the ongoing support of the European Union in carrying out democratic reforms and developing a stable and sustainable state in Kyrgyzstan,” Japarov stated. He also proposed expanding cooperation in areas such as green initiatives, early warning systems for natural disasters, low-carbon development, and the transition to renewable energy sources. Japarov highlighted Kyrgyzstan’s role in global environmental advocacy, recalling that the United Nations (UN) had declared 2023-2027 as the "Five Years of Action for the Development of Mountain Regions" at Kyrgyzstan’s initiative. He invited the EU to become a donor for the country’s roadmap for sustainable development in mountain regions, citing shared environmental challenges such as glacier preservation, ecosystem protection, and sustainable growth. EU and EBRD Commit to Infrastructure Development Commissioner Síkela reaffirmed the EU’s commitment to regional integration and connectivity between Central Asia and Europe, highlighting Kyrgyzstan’s renewable energy potential. “Kyrgyzstan has huge potential in the field of renewable energy, and the EU is ready to support projects that bring sustainable and long-term benefits to the region and realize this potential,” Síkela stated. Following their discussions, Japarov and Síkela oversaw the signing of a financial agreement between the Kyrgyz government, the EU, and the European Bank for Reconstruction and Development (EBRD). The agreement launches a major irrigation improvement program in Kyrgyzstan, aimed at enhancing water management and sustainability. Financial Commitments and Infrastructure Projects A financial package of up to €37.96 million will support critical irrigation infrastructure upgrades in Kyrgyzstan’s Jalalabad and Naryn regions. This funding includes: €26.93 million in an EBRD sovereign loan €1.03 million in an EBRD grant €10 million in an EU grant The investment will finance improvements to water intakes, pumping stations, main canals, and distribution networks, with the goal of reducing water losses, cutting electricity consumption, and lowering CO₂ emissions. Additionally, the EBRD and EU will fund the reconstruction and automation of a section of the Western Great Chui Canal in northern Kyrgyzstan. A separate financial package of €23.8 million has been allocated under the EBRD’s Regional Integrated Water Resources Management Framework for Kyrgyzstan and Tajikistan, approved by the EBRD’s Board of Directors in 2024. This package consists of: €15.23 million in an EBRD sovereign loan €5 million in an EBRD grant €3.6 million in an EU grant These investments are expected to modernize Kyrgyzstan’s irrigation systems, enhance water resource management, and improve agricultural sustainability. The EU and EBRD’s latest financial commitments to Kyrgyzstan’s irrigation and water management infrastructure highlight growing cooperation between Europe and Central Asia. These projects aim to increase agricultural productivity, enhance climate resilience, and promote sustainable development in the region.

law

New Kyrgyz Investment Zone to Operate Under English Law

On March 17, Kyrgyzstan's president Sadyr Japarov signed a decree titled "On Measures to Establish a Special Investment Territory with a Special Legal Regime in the Issyk-Kul Region and an Independent International Center for Dispute Resolution Using English Law". Boosting Investment Appeal The initiative aims to enhance Kyrgyzstan’s attractiveness to foreign investors by providing a more predictable and internationally recognized legal framework for business operations. The decree directs the Cabinet of Ministers to take the necessary steps for implementation, including the potential involvement of international consultants and legal experts in the development of the special investment zone and dispute resolution center. Adopting English Common Law for Dispute Resolution On March 11, Adylbek Kasymaliyev, Chairman of the Cabinet of Ministers, met with British Ambassador Nicholas Bowler and a group of international legal consultants to discuss adopting English common law principles for handling investment disputes in Kyrgyzstan. English common law, which is based on judicial precedents rather than codified statutes, is widely used in international commerce and financial centers such as London, Dubai, and Singapore. Supporters argue that its introduction in Kyrgyzstan could increase investor confidence by offering a more stable and predictable legal environment. Legal Experts Express Skepticism Despite the government’s enthusiasm, some legal experts remain skeptical about the feasibility of incorporating English common law elements into Kyrgyzstan’s legal system. Critics point to potential challenges, including compatibility with existing Kyrgyz laws, the need for specialized legal training, and whether the judiciary can effectively apply a mixed legal framework. The establishment of a special investment territory in Issyk-Kul and an independent dispute resolution center represents a bold step toward legal modernization in Kyrgyzstan. While the adoption of English common law principles could improve investor confidence, the success of the initiative will depend on effective implementation, legal harmonization, and investor reception.