BAKU, Azerbaijan, January 7. Cooperation between the European Union (EU) and Tajikistan in the field of renewable energy (RE) is entering a new phase in 2026. While previous interactions mainly involved technical assistance and advisory support, the focus now is on large-scale investments, institutional reforms, and integrating energy priorities into a broader economic and digital dialogue under the EU’s Global Gateway strategy.
Tajikistan, which possesses one of the largest hydropower potentials in Central Asia, holds a special place in the EU’s regional strategy. As a European Commission representative told Trend in an exclusive interview, Brussels’ priorities in the country are clearly structured.
"The EU’s Global Gateway initiative aims to strengthen sustainable connectivity and infrastructure worldwide. In Central Asia, and specifically in Tajikistan, our cooperation focuses on four priority areas: water/energy/climate, transport, digital connectivity, and critical raw materials," the spokesperson said.
In this context, energy and water resources remain the foundation of EU–Tajikistan cooperation. The EU is using the Team Europe format, which pools resources from the European Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and national financial institutions of EU member states.
A key feature of the current stage is the shift from individual projects to the development of a long-term investment portfolio. In 2025, several flagship projects were launched or modernized.
The Sebzor Hydropower Plant (HPP), commissioned in June 2025, has a capacity of 11 MW and was implemented with support from the EU and Germany’s KfW Bank. The project provides electricity to around 430,000 people in the Gorno-Badakhshan Autonomous Region and also contributes to cross-border energy supply to Afghanistan.
Equally significant is the modernization of the Kayrakkum HPP, where capacity increased from 126 MW to 174 MW. As part of a $196 million financing package, the EIB contributed $37 million, improving power reliability for over 500,000 people.
A central pillar of cooperation is the Rogun HPP, the country’s largest infrastructure project, with a total capacity of 3,780 MW and an estimated cost of $6.4 billion. The EIB’s participation in the donor consortium is seen in Brussels as a contribution to the project’s sustainable financing, in line with EU environmental and social standards.
Energy cooperation with Tajikistan is embedded in a broader regional framework. At the 2025 EU-Central Asia summit, a €12 billion Global Gateway investment package was confirmed, with €6.4 billion allocated to water, energy, and climate projects. Given its hydropower potential, Tajikistan is considered a key beneficiary of this part of the program.
At the same time, the SECCA initiative (Sustainable Energy Connectivity in Central Asia) is being implemented, under which the EU in 2025 actively funds the development of legal and regulatory frameworks for solar and wind energy in Tajikistan. This demonstrates Brussels’ commitment to diversifying Tajikistan’s energy mix, reducing reliance solely on hydropower.
EU–Tajikistan cooperation in renewable energy extends beyond electricity generation. Significant funds are allocated to modernizing distribution networks and reducing technical losses. In 2025, a €43 million package was launched, including a €28 million EBRD loan and a €15 million EU investment grant. The project involves deploying smart meters and upgrading infrastructure in nine cities, including Khatlon and Sughd.
Energy digitalization is complemented by the EU’s broader digital agenda in the country.
"Regarding digitalization, we are advancing under the dedicated Team Europe Initiative on Digital Connectivity, beginning with capacity-building activities. Additionally, we are preparing for the deployment of satellite ground stations, aimed at improving digital access in remote areas across the region. Tajikistan has shown interest in this initiative, and we anticipate that the country will benefit from this support in the near future," the spokesperson emphasized.
From a sustainable development perspective, European involvement is already delivering measurable results. Sebzor HPP and the Kayrakkum modernization alone are expected to reduce CO₂ emissions by around 45,000 tons annually. Through the GEFF mechanism, over 2,000 households and small businesses adopted energy-efficient and “green” technologies in 2024–2025.
Institutional reforms are also part of the agenda. With EU advisory support, Tajikistan passed a law in December 2025 exempting solar panel imports from VAT until 2031, aimed at stimulating private investment in renewable energy.
The anticipated signing of the Agreement on Enhanced Partnership and Cooperation (AEPC) will further boost cooperation.
“The EU places high value on its partnership with Tajikistan. Our relationship is set to deepen further with the Enhanced Partnership and Cooperation Agreement (EPCA). Negotiations concluded last year, and we now look forward to its signature,” the representative noted.
The AEPC covers economic development, energy, climate, digital technologies, and the rule of law, creating a predictable environment for European investors.
“For the EU, the EPCA reflects our long-term commitment to Central Asia and to Tajikistan in particular. A predictable and transparent business environment is essential for attracting European investors, fostering innovation, and enabling sustainable growth. The EPCA will play a key role in strengthening these conditions and supporting mutually beneficial economic cooperation,” the spokesperson stressed.
To date, the EU is Tajikistan’s second-largest financial partner in the green transition, after the World Bank group. The combined portfolio of active energy projects involving the EIB, EBRD, and EU grants exceeds €500 million. Under Global Gateway, Tajikistan is not merely a recipient of aid but a strategic partner in shaping a sustainable energy architecture for Central Asia.