News of Central Asia

News of Central Asia27.06.2025

Kazakhstan and Uzbekistan drive green energy progress in Central Asia

QAZAQ GREEN.  The decade since the adoption of the Paris Climate Agreement has marked the beginning of a complex yet steady energy transition for the five Central Asian nations. With decarbonisation commitments in place, countries in the region are advancing at different paces in the development of renewable energy sources (RES). Data from the International Renewable Energy Agency (IRENA) covering 2015 to 2024 reveals notable progress. However, the region’s energy sector remains predominantly reliant on hydrocarbons. By the end of 2023, the total renewable energy capacity across Central Asia exceeded 17.3 GW — a 26.6% increase compared to 2018 — reflecting a clear trend while still highlighting persistent challenges, UPL reported.

Kazakhstan: a regional leader in renewable energy

Kazakhstan, aiming to achieve carbon neutrality by 2060, has emerged as a regional frontrunner in renewable energy development. The country has focused primarily on attracting investment into solar and wind energy. By the end of 2024, the share of renewables in electricity generation had reached 6.43% — more than double the 2020 level of 3%. This upward trajectory is evident in annual figures: 3.69% in 2021, 4.53% in 2022, and 5.92% in 2023. Eight new renewable energy facilities with a combined capacity of 163 MW were commissioned in 2024 alone.

Over the past decade, Kazakhstan’s installed renewable capacity has grown 17-fold, reaching 3,082 MW. In 2025, nine more projects totaling 455.5 MW are expected to come online.

This transformation was driven by the introduction of an auction system in 2018, which offered transparent and competitive conditions. It attracted around 260 companies from 13 countries, leading not only to capacity growth but also to a marked reduction in consumer electricity tariffs: prices for wind energy dropped by nearly 50%, and solar costs fell by 2.5 times. Investors benefit from attractive terms, including 20-year power purchase agreements, tariff indexation, and investment incentives. Kazakhstan aims to increase renewables’ share to 15% by 2030, with 91 new projects (2,258 MW) planned to bring total capacity to 10 GW.

Uzbekistan: the fastest-growing green energy player in the region

Uzbekistan is taking a structured approach to green energy, actively implementing projects with support from international financial institutions. According to the Uzbekistan 2030 strategy, renewables are expected to account for 40% of electricity production — or 25 GW of installed capacity — by the start of the next decade. The legal foundation for this was established in 2019 with the adoption of the Law on the Use of Renewable Energy Sources, which helped attract significant investment.

By 2024, Uzbekistan had 4.5 GW of installed renewable capacity, supplying 16% of the country’s electricity. This helped save nearly 1 billion cubic metres of natural gas and prevent 1.4 million tonnes of greenhouse gas emissions. The sector attracted $2.1 billion in foreign direct investment, with another $13 billion worth of projects currently under development. Nine major solar and wind farms (totaling 1.6 GW) are operating across Bukhara, Jizzakh, Kashkadarya, Navoi, Samarkand and Surkhandarya regions. Additionally, six new hydropower plants (183 MW) have been launched in Andijan, Samarkand, Surkhandarya and Tashkent.

Distributed generation is also growing: solar panels with a total capacity of 457 MW have been installed at public institutions, businesses, and homes, supported by nearly 2 trillion soums in bank financing. This generated an additional 5 billion kWh of electricity. President Shavkat Mirziyoyev has emphasised that green energy is becoming a key driver of the national economy. Over the next three years, Uzbekistan plans to commission 28 new large-scale solar and wind facilities with a combined capacity of 8 GW.

The Solar House programme enables households to earn 1,000 soums per kilowatt-hour fed into the grid. By 2024, around 11,000 families had benefited from the initiative. Customs exemptions for renewable energy equipment imports for businesses have been extended for another five years.

Kyrgyzstan: tapping into hydropower and exploring solar and wind

Kyrgyzstan’s energy strategy prioritises boosting generation capacity to enhance national energy security. The focus is on building small and medium-sized hydropower plants, often backed by domestic investors. According to the Ministry of Energy, 39 hydropower plants are currently operating. Eighteen more small HPPs (78 MW) are scheduled for commissioning by the end of 2025, with 13 projects (148 MW) planned for 2026 and 14 HPPs (170 MW) for 2027.

In solar energy, the largest project underway is a 300 MW solar power plant in Toru-Aigyr, Issyk-Kul region, with $270 million in investment. The first wind power project — a 200 MW plant with 100 turbines — is under construction in Balykchy.

However, as noted by Kunduz Kyrbasheva, Chair of the Wind and Solar Power Association of the Kyrgyz Republic, most renewable energy projects are still under development, and their contribution to the energy mix remains marginal. She cites legislative gaps and the absence of a "one-stop-shop" system as major barriers. "Kyrgyzstan still lacks a single authority that can issue permits, allocate land, sign contracts, and approve tariffs in one place," she said.

This is expected to change with the adoption of the National Development Programme of the Kyrgyz Republic until 2030, which sets three core priorities: energy security, independence, and environmental sustainability. The strategy aims to significantly raise the share of renewables in the national energy mix.

Tajikistan: a hydropower giant with untapped solar potential

Tajikistan is a regional outlier, producing 98% of its electricity from hydropower — one of the highest shares in the world, ranking sixth globally. IRENA data shows that over the past ten years, Tajikistan’s installed renewable capacity increased by 15.8%, reaching 5,738 MW. According to the country’s green economy development strategy through 2037, Tajikistan aims to boost renewable electricity generation by another 10% and raise solar capacity to 800 MW. President Emomali Rahmon has pledged to make the national grid 100% renewable by 2032 and turn Tajikistan into a "green" country by 2037.

Despite having up to 330 sunny days per year — theoretically enough to meet 80% of the country’s electricity needs through solar — this potential remains underutilised. The only commercial solar plant (220 kW) has been operating in Murghab since 2020. Construction of a 200 MW solar facility is expected to begin this year in the Sughd region. A notable development is the new requirement, effective 1 April 2024, that all new buildings be equipped with solar systems.

Green energy is a strategic priority for Central Asia, yet significant challenges remain — including the need to modernise energy infrastructure, establish stable and investor-friendly regulations, and raise public awareness.

Once completed, the Rogun Hydropower Plant in Tajikistan will become the tallest dam in the world (335 metres). With a planned capacity of 3,600 MW, it will nearly double Tajikistan’s current power generation, positioning the country as the region’s leading electricity exporter.

 

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