Central Asia Launches Its First Regional Electricity Market
Economy
The World Bank has approved the 10-year REMIT program to establish Central Asia’s first regional electricity market. The project aims to integrate hydroelectric power in Kyrgyzstan and Tajikistan, thermal generation in Uzbekistan, Kazakhstan, and Turkmenistan, as well as develop solar and wind energy across the region. The program is expected to bring up to $15 billion in economic benefits to the region by 2050.
On January 22, the World Bank approved the 10-year program “Development of the Electricity Market and Integration of Energy Systems in Central Asia” (REMIT). The program aims to create the region’s first electricity market, increase the efficiency of complementary energy resources, and strengthen cooperation among Central Asian countries.
The project covers hydroelectric power in Kyrgyzstan and Tajikistan, thermal generation in Uzbekistan, Kazakhstan, and Turkmenistan, as well as the potential of solar and wind energy in all countries of the region. Currently, electricity trade between the countries accounts for about 3% of total demand, while renewable energy makes up about 4% of total production.
REMIT plans include:
Increasing regional electricity trade to 15,000 GWh per year;
Expanding transmission line capacity to 16 GW;
Integrating up to 9 GW of new clean energy capacities into the region’s energy systems.
Najy Benhasin, Regional Director of the World Bank for Central Asia, noted that deeper energy integration could bring up to $15 billion in economic benefits to the region by 2050. The total estimated program funding is $1.018 billion.
The program will be implemented in three phases: creating a regional market, modernizing infrastructure, introducing digital solutions to improve network reliability, and strengthening institutional coordination in the energy sector.
In the first phase, Uzbekistan, Kyrgyzstan, and Tajikistan, along with the regional coordination-dispatch center “Energy,” will receive grants and concessional financing totaling $143.2 million. Of this, $140 million comes from the World Bank International Development Association, and $3.2 million from the Central Asia Water-Energy Program (CAWEP).
About 900 MW of new clean energy capacities will be integrated in the first phase, expected to attract approximately $700 million in private investment. The regional steering committee will include energy ministries and relevant agencies from Central Asian countries.
The project covers hydroelectric power in Kyrgyzstan and Tajikistan, thermal generation in Uzbekistan, Kazakhstan, and Turkmenistan, as well as the potential of solar and wind energy in all countries of the region. Currently, electricity trade between the countries accounts for about 3% of total demand, while renewable energy makes up about 4% of total production.
REMIT plans include:
Increasing regional electricity trade to 15,000 GWh per year;
Expanding transmission line capacity to 16 GW;
Integrating up to 9 GW of new clean energy capacities into the region’s energy systems.
Najy Benhasin, Regional Director of the World Bank for Central Asia, noted that deeper energy integration could bring up to $15 billion in economic benefits to the region by 2050. The total estimated program funding is $1.018 billion.
The program will be implemented in three phases: creating a regional market, modernizing infrastructure, introducing digital solutions to improve network reliability, and strengthening institutional coordination in the energy sector.
In the first phase, Uzbekistan, Kyrgyzstan, and Tajikistan, along with the regional coordination-dispatch center “Energy,” will receive grants and concessional financing totaling $143.2 million. Of this, $140 million comes from the World Bank International Development Association, and $3.2 million from the Central Asia Water-Energy Program (CAWEP).
About 900 MW of new clean energy capacities will be integrated in the first phase, expected to attract approximately $700 million in private investment. The regional steering committee will include energy ministries and relevant agencies from Central Asian countries.
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