The World Bank Approves 10-Year Program to Establish a Regional Electricity Market in Central Asia

Tashkent, Uzbekistan (UzDaily.com) — The Board of Executive Directors of the World Bank has approved the “Development of the Electricity Market and Integration of Power Systems in Central Asia” (REMIT) program, a ten-year initiative. The program will be implemented in three phases and aims to establish a sustainable energy partnership across the region.

The key objectives of REMIT include creating the first regional electricity market in Central Asia, developing cross-border electricity trade, expanding the transmission capacity of power networks, and laying the foundation for large-scale integration of renewable energy into national power systems.

During the first phase, Kyrgyzstan, Tajikistan, Uzbekistan, and the Central Asian Coordination and Dispatch Center “Energy” will receive grants and concessional financing totaling US$143.2 million. Of this amount, US$140 million will come from the International Development Association of the World Bank, and US$3.2 million will be provided as grants through the Central Asia Water and Energy Program (CAWEP).

Electricity demand in Central Asia has been steadily increasing and, if current trends continue, could triple by 2050. As the region’s economies expand, populations grow, industries develop, and urbanization accelerates, the need for accessible, reliable, and sustainable energy continues to rise.

Despite the significant potential for strengthening energy security and improving access to electricity, electricity trade among Central Asian countries remains limited, accounting for only about three percent of total demand. The share of renewable energy in overall electricity generation does not exceed approximately four percent, although the region possesses abundant and complementary clean energy resources that have yet to be fully utilized.

REMIT is designed to make more effective use of these complementary resources, including the hydroelectric potential of Kyrgyzstan and Tajikistan, electricity generation at thermal power plants in Kazakhstan, Turkmenistan, and Uzbekistan, as well as the rapidly growing solar and wind energy potential across all Central Asian countries.

Over the next decade, REMIT is expected to increase electricity trade volumes to at least 15,000 GWh per year, equivalent to the annual needs of millions of people in the region. The program also foresees a more than threefold increase in transmission line capacity—to 16 GW—and the integration of up to 9 GW of clean energy capacity into the power systems of Central Asian countries. Deepening regional energy integration will enable a more balanced and resilient energy system, reduce power outages, and lower electricity costs for households and businesses.

Najy Benhasin, World Bank Regional Director for Central Asia, emphasized that REMIT supports the region’s goal of deepening energy cooperation and creating a regional electricity market. He noted that this initiative will enable more efficient use of energy resources, including through cross-border exchanges of clean energy, improve the reliability of electricity supply, make electricity more affordable, and create new jobs. According to Benhasin, closer energy integration and the development of electricity trade could generate up to US$15 billion in economic benefits for Central Asia by 2050.

The estimated total financing for REMIT amounts to US$1.018 billion. Funds will be allocated for the development and launch of the regional electricity market, strengthening cross-border transmission infrastructure, implementing digital solutions to enhance grid reliability, and reinforcing regional institutions and coordination mechanisms in the energy sector. Program investments will also support job creation in both energy infrastructure construction and among highly skilled professionals managing the regional electricity market.

Charles Cormier, World Bank Director for Infrastructure in Europe and Central Asia, noted that the launch of the Central Asian regional electricity market, based on a reinforced power network, will enhance energy security, support large-scale integration of renewable energy, and attract private investment. It is expected that in the first phase of the program, approximately 900 MW of new clean energy capacity will be integrated into the power systems, mobilizing around US$700 million in private investment and laying the foundation for a more reliable and interconnected regional energy system.

Subsequent phases of REMIT will build on these results, focusing on further expansion of the regional electricity market, increasing transmission capacity, digitalizing infrastructure, and strengthening coordination among relevant regional institutions.

The Central Asian Coordination and Dispatch Center “Energy,” authorized to coordinate cross-border electricity exchanges, will oversee the market and institutional components of the program, while national transmission companies will implement infrastructure investments. Overall supervision of REMIT will be carried out by a regional steering committee, including the energy ministries and executive agencies of Central Asian countries.

The Central Asia Water and Energy Program (CAWEP) is a donor-funded trust managed by the World Bank in partnership with the European Union, Switzerland, and the United Kingdom. It aims to promote regional cooperation and strengthen water and energy security in Central Asia.