BAKU, Azerbaijan, May 11. The Eurasian Development Bank (EDB) is strengthening its focus on the water-food-energy nexus in Central Asia, while maintaining the energy sector as the core of its 2026–2027 investment strategy, a source from the Bank’s Analytical Department told Trend.
"The EDB is not planning a radical shift in its investment priorities. Under the Bank's new strategy through 2031, the energy sector remains central: expanding renewables, developing grids and storage, and modernising existing capacity. Green industrialisation is also emerging as a key driver of sustainable growth across the region," the source stated.
The bank highlighted the strategic significance of Central Asia as both a challenge and an opportunity for the energy transition.
"Central Asia is where the pressures and opportunities of the energy transition converge with particular force. Total electricity demand could grow by 40% by 2030, while up to 70% of grids and thermal power plants require modernisation. Yet the region holds considerable assets: substantial hydropower potential, vast solar and wind resources, significant gas reserves, and a strategic location bridging Russia, China, and South Asia. Regional integration is critical to unlocking this potential - expanding cross-border energy ties and coordinating water and energy flows can reduce systemic risks, smooth seasonal imbalances, and attract large-scale private capital," the source explained.
The water-food-energy nexus is central to the bank’s approach, with specific programs already in place.
"The water-food-energy nexus sits at the heart of this agenda. In response, the EDB has committed over $750 million under its Central Asia Water-Energy Complex flagship initiative, while the Bank's total green portfolio has tripled over seven years to $2 billion. The Bank is moving beyond infrastructure toward systemic solutions: a $5.3 million grant project with Kazakhstan's Ministry of Water Resources and UNDP is building a sustainable irrigation ecosystem and supporting regional manufacturing of irrigation equipment," the source added.
EDB’s analytical research is also shaping investment strategy, advocating a balanced approach that reduces costs while significantly cutting emissions.
"The bank's March 2026 research report on Central Asia's energy transition proposes a 'middle path' strategy that - by EDB calculations - is 30% cheaper than full green maximalism, while cutting the carbon footprint fivefold compared to a business-as-usual path," the source noted.
The bank emphasized that strategic investment in energy modernization, renewable expansion, and integrated water-food-energy systems collectively positions Central Asia for sustainable growth, while unlocking significant regional economic potential.
