Renewable Energy Generation - The Times Of Central Asia

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ADB to Help Kazakhstan Move Away from Coal Power Generation

Kazakhstan’s Ministry of Energy and the Asian Development Bank (ADB) have signed a memorandum of understanding, moving closer to the possible early retirement of a coal plant in Kazakhstan under the bank’s Energy Transition Mechanism (ETM) program. Under the memorandum, the ministry and ADB will work toward a pilot transaction that will demonstrate a pathway to significantly reduce Kazakhstan’s greenhouse gas emissions by decommissioning pilot coal plants for renewables or other low-c or repurposing carbon energy technologies. A feasibility study will determine which of the country’s coal-fired power generation, combined heat and power plants and heat-only boilers could be the most viable for early retirement. ADB and Kazakhstan have also agreed to analyze the potential impact of early decommissioning or repurposing of a plant on the country’s power and heat supply, develop the country’s renewable energy generation capacity, and promote regional energy trade. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “Keeping 1.5 degrees alive means moving away from fossil fuels and toward clean energy as quickly as possible—and ADB’s ETM program aims to do that in a way that considers each country’s energy and socioeconomic development needs. As Asia and the Pacific’s climate bank, we are committed to helping Kazakhstan inclusively decarbonize its economy, and we aim to demonstrate how the clean energy transition can be accelerated in Central Asia.” Minister of Energy of Kazakhstan Almassadam Satkaliyev added, “Kazakhstan will need to develop a new approach in the power, heating, and water sectors as a single technological system, and we rely on ADB’s support and experience. I hope this program will demonstrate new systems' technological shift and reliability through ETM, which can then be replicated in other plants and regions.” Kazakhstan is a major consumer of coal, with 25 billion tons of coal reserves estimated to be the eighth largest worldwide. About 70% of the country’s electricity is produced from coal, while energy-related activity, including heat and electricity production, accounts for more than 80% of the country’s total greenhouse gas emissions. Kazakhstan’s long-term strategy for achieving carbon neutrality by 2060 involves reducing its use of fossil fuels and increasing its renewable power generation capacity.

Green Energy Economic Cooperation Renewable Energy Generation Energy Infrastructure Energy Security

Central Asia to Develop a Unified Platform for Electricity Trade

Uzbekistan's Deputy Minister for Energy Umid Mamadaminov announced at the European Economic Days in Tashkent on November 6 that a unified platform for electricity trade is being developed in Central Asia. Mamadaminov said that Uzbekistan is developing this platform with the support of the World Bank and other partners. “Infrastructure is very important for integrating renewable energy sources such as wind and solar, and many countries face this problem. We need at least 5,000 km of power lines, including 500 kV and 200 kV high-voltage lines and substations,” Mamadaminov said. At least 2,000 km of power lines should be built in the next two years. “We have already signed contracts to install more than 2,000 MW of energy storage systems with a total capacity of more than 400 MW, as each is a two-cycle network. We will have at least 4,000 MW of basic capacity in the next two years. This helps to respond to fluctuations in solar energy production quickly,” the deputy minister said. According to Mamadaminov, automation is the main problem in integrating renewable energy sources into the electric grid because the system cannot be controlled without it. In addition, this year, reforms to modernize and regulate energy consumption, including a new plan developed by the Cabinet of Ministers, were implemented in Uzbekistan. Uzbekistan’s energy system, especially electricity generation, relies heavily on fossil fuels. However, the country aims to produce 25% of its electricity from renewable sources by 2030. Uzbekistan plans to focus on solar energy while using wind, biomass, and hydro sources to achieve this goal. The government is working to attract investors to build 8 GW of solar and wind power and increase hydroelectric capacity to 1.935 GW by 2030. Biogas production from biomass and organic waste will also be developed.

Green Energy Economic Cooperation International Finance Corporation Renewable Energy Generation

IFC Provides $240 Million Loan to Boost Uzbekistan’s Renewable Energy

The IFC has announced a $240 million Islamic Equity Bridge Loan for ACWA Power to boost Uzbekistan’s renewable energy sector. The announcement was made at the 8th Future Investment Initiative conference in Riyadh, Saudi Arabia. The financing will cover a 1-gigawatt solar PV plant, a 668-megawatt Battery Energy Storage System (BESS), and around 500 kilometers of high-voltage transmission lines. These projects aim to advance Uzbekistan’s clean energy goals, potentially cutting greenhouse gas emissions by 1.3 million tons of CO2 annually and generating around 2,400 gigawatt hours of electricity per year. Al Muhaidib, ACWA Power's Chief Financial Officer, stated that “we are honored to collaborate with IFC on this transformative project in Uzbekistan, which embodies our shared vision of advancing sustainable energy solutions. This initiative will establish a new standard for cross-border ACWA Power recourse funding support, effectively addressing energy demands while championing environmental sustainability.” The $240 million financing, structured as an Islamic Finance Murabaha, includes an A-Loan of up to $227.75 million and a $12.25 million trust loan through IFC’s Managed Co-Lending Portfolio Program. This funding will support ACWA Power’s equity contributions to the project’s development over the next four years. By optimizing equity returns, this structure helps project developers offer competitive tariffs and attract private investors, advancing Uzbekistan’s goal of reaching 40% renewable energy by 2030. “This project reflects IFC’s commitment to tackling climate change, accelerating the clean energy transition in emerging markets, and supporting public and private sector entities in Saudi Arabia with innovative investments in the region and beyond,” said Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources in the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan. Saudi company ACWA Power’s investment portfolio in Uzbekistan now includes eight projects worth over $6.8 billion, with a more than 5.5 GW design capacity. The company’s success highlights Uzbekistan as an attractive investment hub and a leader in renewable energy in Central Asia.

Economy Water Management Economic Cooperation Renewable Energy Generation Energy Infrastructure HPP

Kazakhstan, Kyrgyzstan and Uzbekistan Determine Operating Mode for Toktogul Reservoir

Following a meeting in Tashkent to coordinate the region's water and energy balance, ministers from Kazakhstan, Kyrgyzstan, and Uzbekistan determined a preliminary operating mode for Kyrgyzstan’s Toktogul reservoir for the autumn-winter period. Kyrgyzstan’s largest Toktogul hydroelectric power plant (HPP) reservoir on the Naryn River releases water downstream to Kazakhstan and Uzbekistan providing essential irrigation for fields in Kazakhstan's dry southern regions. In winter, the plant which produces around 40% of Kyrgyzstan’s electricity, releases more water to generate electricity to meet the country’s power shortages. Kazakhstan and Uzbekistan are now interested in helping Kyrgyzstan maintain a sufficient volume of water in the Toktogul reservoir for use during the 2025 irrigation season; a goal which could be achieved by exporting Kazakh and Uzbek electricity to Kyrgyzstan during the winter months. Commenting on the proposal, Kazakhstan’s Minister of Water Resources and Irrigation Nurzhan Nurzhigitov, stated: "An important area of cooperation for our countries is the water and energy sector. This year has become a vivid example of deepening such regional cooperation. We [Kazakhstan] have met our water needs thanks to the joint measures. For a downstream country, this is extremely important. First, it is used to fill the North Aral Sea. We will continue to adhere to the agreements reached for the autumn-winter period to provide farmers with irrigation water next year." The Kazakh Ministry of Water Resources and Irrigation announced on October 14 that the irrigation season had ended in all regions of the country and during the growing season, from April 1, the Ministry supplied Kazakhstan's farmers with about 11.2 billion cubic meters of water. Nurzhigitov also drew attention to the vital role of water diplomacy in preventing a shortage of irrigation water this year, with Kyrgyzstan, Tajikistan, and Uzbekistan sending more water to Kazakhstan than planned. As previously reported by The Times of Central Asia the Toktogul reservoir accumulated more water this year than last.

Energy Security HPP Strategy Energy Infrastructure Renewable Energy Generation

Kyrgyzstan Begins Construction of Another Small Hydropower Plant

The construction of a small hydroelectric power plant on the Ak-Buura River at the Papan reservoir in Kyrgyzstan’s southern Osh region has begun. The Ak-Buura River supplies water to Kyrgyzstan’s second-largest city, Osh. The Papan reservoir is located in the Papan Gorge, and the power plant will be constructed in the narrowest part of the Ak-Buura River valley. The small hydropower plant will have a capacity of 25 MW and will generate 103 million kWh of electricity per year. The project costs $27 million. "The construction of a small hydroelectric power plant at the Papan reservoir is another strategic step towards the country’s energy independence," Chairman of Kyrgyzstan’s Cabinet of Ministers Akylbek Japarov stated at the ceremony to launch the construction on October 5. In recent years, Kyrgyzstan has been working to expand its energy capacity by building small and large hydroelectric plants to address electricity shortages. Earlier this year, Kyrgyzstan constructed small hydroelectric power plants in Bala-Saruu in the northwestern Talas region and Kok-Art and Kainama small hydropower plants in the southern Jalal-Abad region. In 2023, Kyrgyzstan met 80% of its electricity demand, which totaled 17.2 billion kilowatt-hours. The remaining 20%, or 3.4 billion kilowatt-hours, was imported. Energy Minister Taalaibek Ibraev last week stated that despite an increase in water levels at Kyrgyzstan’s largest Toktogul hydroelectric power plant (HPP) reservoir this year, the country would still be facing an electricity deficit of about 3.9 billion kilowatt-hours. The positive is that Ibraev said in parliament on October 4 that there will be no scheduled blackouts this winter, as his ministry has done a good job preparing the power distribution system for the coming winter. The Energy Ministry has installed new and repaired all the existing transformers nationwide. In previous years, Kyrgyzstan practiced scheduled restrictions on electricity supply for several hours a day to save electricity during peak consumption hours in winter. The minister also announced that starting January 1, 2025, Turkmenistan will supply Kyrgyzstan with 1.7 billion kilowatt-hours of electricity.

Renewable Energy Generation Green Energy Wind power Solar Energy Green economy

Uzbekistan Plans to Increase Share of Green Energy to 40% by 2030

Uzbekistan intends to increase the share of renewable energy sources in the country’s energy consumption structure to 40% by 2030. Energy Minister Zhurabek Mirzamakhmudov announced this at the “Russian Energy Week" forum. According to Mirzamakhmudov, renewable energy, including solar and wind power plants, will become the basis for meeting the growing electricity demand as part of the country's growth strategy. Mirzamakhmudov noted that Uzbekistan's economy is growing by 6% annually, and the population will continue to grow. This causes the demand for electricity to grow by 7-8% per year, and by 2030, this figure may stabilize at 7.5%. Uzbekistan plans to introduce up to 20 gigawatts of solar and wind power plant capacity to meet this demand. It is expected that the share of renewable energy sources in the country's total energy balance will reach 40%. The share of renewable energy is about 10%, but by the end of this year, it should increase to 15%. In the coming years, 2.5 to 3.5 gigawatts of new capacity will be commissioned annually. In addition, considerable attention will be paid to developing thermal and hydroelectric power plants, which are planned to reach 18.5 gigawatts of capacity by 2030. The minister also emphasized the importance of energy storage systems. Uzbekistan plans to install 300 megawatts of storage capacity this year and increase it to 4.2 gigawatts by 2030, mainly using lithium-ion batteries. Along with this, projects to create hydro-battery stations will be implemented. Mirzamakhmudov added that all these projects are financed by foreign direct investment, demonstrating the high interest of international investors in the country's energy sector. The Russian Energy Week 2024 forum is being held in Moscow from September 26 to 28. The event's main theme is “Energy Cooperation in a Multipolar World.” More than 70 speakers from various countries have participated, including from Russia, BRICS countries, and Africa. The forum discussed topics such as sustainable energy development, the role of hydrocarbons in the future, and issues of technological independence. One of the key events was the meeting of BRICS energy ministers. Earlier, The Times of Central Asia wrote about the annual meeting of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB) held in Samarkand on September 25-26, where Uzbek President Shavkat Mirziyoyev proposed a program of green energy development for Central Asia.