BAKU, Azerbaijan, September 2. The Kyrgyz Republic is embarking on a new path to secure its energy future through strategic investment and enhanced regional cooperation, following a state of emergency declared in August 2023 amid rising energy demand and declining water levels in reservoirs used for hydropower generation, Trend reports via Moody's.
The country is looking to cast a wider net with its energy mix and boost the slice of the pie that comes from renewable electricity generation. While still heavily reliant on hydropower, a major development for the country is the ongoing CASA-1000 project, a $1.2 billion initiative that resumed construction in 2024. Scheduled to be partially operational by 2025, the project will allow the Kyrgyz Republic and Tajikistan to export surplus hydropower to Afghanistan and Pakistan, offering a significant opportunity for export revenue.
"The project offers opportunities for hydropower-rich countries like the Kyrgyz Republic and Tajikistan to expand electricity exports, while enabling energy-importing neighbors to meet rising demand as their economies and industrial bases diversify," the report notes.
Following a border delimitation agreement between the Kyrgyz Republic and Tajikistan in March 2025, the two countries concurrently agreed to construct a 500-kilovolt power transmission line that will connect the Datka Substation in the Kyrgyz Republic and the Sughd Substation in Tajikistan as part of the next phase of the CASA-1000 project. This improved interconnectivity and regional trade are expected to attract further investment in renewable energy, which will enhance energy security and reduce social risks.
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