The volume of net electricity consumption in the countries of Central Asia in 2021 increased from 108.1 TWh to 184.9 TWh, - report

The sharp weakening of cooperation in the water and energy complex (WEC) of Central Asia (CA) in the 2000s coincided with a period of rapid increase in the pressure on the energy sector. This is stated in the report of the EDB "Investment in the water and energy complex of Central Asia."

The volume of net electricity consumption increased by 71.1% - from the minimum level in the post-Soviet period of 108.1 TWh in 1999 to 184.9 TWh in 2020 - amid accelerating industrial growth (6, 7% on average annually excluding Turkmenistan for the period), characterized by high energy intensity, and high demographic growth (by 33.5% from 54.3 million people to 72.4 million people over the period).

With a significant decrease in the mutual average annual power flows, the CA countries intensified the process of building new and modernizing existing generating capacities.

This made it possible to meet the increasing demand through its own generation. In fact, over the past two decades, a course for the self-sustainability of power systems has been implemented.

The formation of the CA power sector took place in the context of the implementation of state programs in the region.

Taking into account the ownership structure and the specifics of investment projects in the WEC, the state plays a key role in its development.

The importance of the state and state-owned companies is manifested at the level of concept formulation for the development of the complex, determining tariff policy, searching for funding sources, implementing projects, etc.

In 2020, the leaders in terms of investment were Kazakhstan ($ 2.78 billion, or 1.6% of GDP) and Uzbekistan ($ 1.377 billion, or 2.4% of GDP).

In Tajikistan and Kyrgyzstan, investment in the capital of the WEC amounted to $ 507 million (6.3% of GDP) and $ 89 million (1.2% of GDP), respectively.

In Tajikistan, budgetary constraints have not become an obstacle to an active state investment policy through external borrowing.

Weak investment performance in the WEC of the Kyrgyz Republic is due to limited government revenues, as well as understated tariffs that do not cover the cost of electricity production.