BAKU, Azerbaijan, October 29. Central Asian countries can reduce electricity sector development costs by coordinating the use of generating capacity and cross-border power grids, avoiding the need to build excessive reserves independently to meet peak demand, Arman Akhunbaev, head of the Eurasian Development Bank’s (EDB) Industry Analysis Center, said.
He made the remarks on Thursday while speaking at a webinar dedicated to the bank’s report, “Energy Without Borders: Architecture of Energy Connectivity in Central Asia.”
He noted that regional integration is becoming increasingly important amid rising electricity consumption and large-scale construction of solar and wind power plants.
According to Akhunbaev, renewable energy development requires not only the commissioning of new generating capacity but also infrastructure capable of compensating for fluctuations in electricity output. If each country addresses this challenge solely through its own reserves, the overall costs of ensuring reliable power supply could be significantly higher.
“Coordinated operation of power systems makes it possible to achieve a completely different level of economic efficiency. We can leverage the advantages of thermal and hydropower generation in different countries, smooth out seasonal demand peaks and trade electricity during hours when it is beneficial for all participants,” he said.
Akhunbaev also highlighted the link between regional electricity integration and the rational use of water resources. The ability to cover winter electricity shortages with supplies from neighboring countries would allow some states to reduce power generation by releasing water from reservoirs, preserving more water for summer irrigation.
At the same time, he said, the existence of shared technical infrastructure alone does not guarantee effective integration. A fully functioning regional market requires transparent electricity trading rules, accurate measurement of cross-border flows and coordinated settlement mechanisms among participants.
Another challenge is the distribution of economic benefits from cross-border projects. As the EDB representative noted, a new power transmission line or flexible power plant may serve the needs of several countries at once. This requires prior agreements on the allocation of costs, revenues and risks.
According to Akhunbaev, reaching agreement on these terms would help turn existing cross-border connections into the foundation of an investment-attractive regional energy system.
