BAKU, Azerbaijan, November 20. Trend News Agency provides an overview of key events that occurred in Kyrgyzstan's energy sector from July through September 2023.
During this period, significant attention was directed towards green energy projects, resulting in cooperation agreements with several companies from China. Additionally, international financial institutions showed interest in Kyrgyzstan's green energy sector.
Assistance provided by international financial organizations:
The World Bank (WB)
In early July, it was announced that the World Bank (WB) would allocate financial support of $67.7 million for the initial stage of the Kyrgyz Renewable Energy Development Project. This project aims to strengthen the country's transmission systems, expand the energy sector's generation capacity, and cater to the growing energy demand. Additionally, it seeks to attract private sector investment.
During its first phase, the project will receive support from the Green Climate Fund through the Sustainable Renewables Risk Mitigation Initiative.
Expected outcomes from this initial phase include a boost in hydropower generation capacity by over 20 MW, an increase in variable renewable energy capacity by at least 100 MW, and a reduction in greenhouse gas emissions by 50.3 tons of carbon dioxide equivalent over the project's duration.
The Kyrgyz Renewable Energy Development Project is designed to be executed in multiple phases and will receive a total funding of $125.7 million over a span of 10 years. The International Development Association (IDA) will finance the project, and the Ministry of Energy of Kyrgyzstan will oversee the first phase, scheduled to run from 2024 to 2028.
In late September, it was announced that the WB had allocated $13.8 million for the CASA-1000 project in Kyrgyzstan, according to Taalaibek Ibraev, the Minister of Energy of Kyrgyzstan.
Providing an update on the current status of the project, the minister noted that 88 percent of the work had been completed as of September 28.
CASA-1000 is an infrastructure project designed to transmit 1,300 megawatts of surplus electricity from Central Asian countries (Kyrgyzstan and Tajikistan) to high-demand electricity markets in South Asian countries (Afghanistan and Pakistan) through the construction of new energy infrastructure. The project involves modernizing the electrical grids in participating countries by building new substations and high-voltage power transmission lines.
The Eurasian Development Bank (EDB)
In early July, the Eurasian Development Bank (EDB) and the Russian-Kyrgyz Development Fund signed an agreement to jointly allocate $88 million for the construction of the Kulanak hydroelectric power station (HPS) in the Naryn region of Kyrgyzstan. The power station, with a capacity of 100 megawatts, will be the first in a series of cascading power plants along the Naryn river. Its establishment will significantly contribute to reducing the country's energy deficit by nearly 20 percent.
Additionally, on July 8, an agreement was signed allocating $10 million from the Russian-Kyrgyz Development Fund (RKDF) to the Chakan HPP company for the completion of the Bala-Saruu small hydropower plant in the Talas region of Kyrgyzstan. This plant, with a capacity of 25 megawatts, will be located near the dam on the Kirov reservoir along the Talas river. It marks the first such facility in the area and is expected to optimize the utilization of water resources.
In 2022, President of Kyrgyzstan Sadyr Zhaparov laid the foundation for the construction of the Bala-Saruu HPP, with over two billion soms ($22 million) allocated from the national budget for the project's implementation. The plant is projected to generate 92.8 million kilowatt-hours of electricity annually, contributing to a reduction in Kyrgyzstan's energy deficit by 4.2 percent.
The Russian-Kyrgyz Development Fund (RKDF)
In September, it was announced that the Russian-Kyrgyz Development Fund (RKDF) plans to allocate $4.2 million for the construction of a small hydroelectric power plant on the Gulcha river in the Alai district of the Osh region in Kyrgyzstan. The fund intends that the new 9-megawatt hydroelectric power station will cover 86 percent of the electricity demand in the Alai district. State-of-the-art, modern equipment will be utilized at the plant.
The third quarter of 2023 was also marked by the signing of agreements for the construction or modernization of existing power stations:
In late July, a consortium of major Chinese companies announced investments and the initiation of construction for the Kazarman hydropower cascade in Kyrgyzstan's Jalal-Abad region.
The contract was signed during the "Issyk-Kul 2023" International Economic Forum held in Cholpon-Ata city, Kyrgyzstan. The consortium comprises "PowerChina Northwest Engineering Corporation Ltd," "Green Gold Energy" (GGE), and "China Railway 20th Bureau Group Co Ltd."
The Kazarman hydropower cascade, expected to have a total capacity of 1,160 MW, is scheduled for construction and operation on the Naryn river by 2030. The cascade will encompass four hydropower plants: the Ala-Buga HPP with 600 MW, the Kara-Bulun-1 HPP with 149 MW, the Kara-Bulun-2 HPP with 163 MW, and the Toguz-Toro HPP with 248 MW. The overall investment cost is preliminary estimated at $2.4–3 billion, subject to precise determination following the development of a detailed project design.
Furthermore, the government of Kyrgyzstan has granted permission to set up a mining farm with a capacity of up to 30 MW within the Kambarata-2 Hydro Power Plant (HPP). The construction of the mining farm is expected to require approximately $20 million in investment, which will be provided by an investor.
Moreover, during a working trip in August to the Xinjiang Uygur Autonomous Region of China, the Minister of Energy of Kyrgyzstan, Taalaibek Ibraev, signed documents pertaining to energy cooperation.
The key signed documents include two memoranda and one memorandum project, two of which were signed with Tebian Electric Apparatus Company (TBEA).
The first is the Memorandum of Understanding for Cooperation in the Construction of the Sary-Jaz Cascade between the Ministry of Energy of Kyrgyzstan and TBEA. This memorandum entails plans for constructing six hydroelectric power stations on the Sary-Jaz and Enilchek rivers, generating a combined capacity of 1160 megawatts and an annual production of 4 billion kilowatt-hours. The project, a joint endeavor with TBEA, is projected to span 5 or 6 years.
The second is a Memorandum Project for Cooperation between the Ministry of Energy of Kyrgyzstan and TBEA for the construction of the 500 kV Kemin-Torugart power transmission line. This document outlines collaborative efforts with TBEA for constructing the 500-kilovolt Kemin-Torugart power transmission line, aimed at exporting electricity to China.
The third document is a Memorandum of Intent between the Cabinet of Ministers of Kyrgyzstan and the government of Xinjiang for the Integration of Energy Infrastructure for the Purpose of Electricity Supply. This memorandum explores the possibility of exporting electricity from Kyrgyzstan to Xinjiang. Ibraev clarified that specific volume details have not been discussed yet, but Kyrgyzstan aims to export surplus electricity.
Additionally, in early September, Kyrgyzstan’s "Chakan HPP" energy company completed significant repair works at its power stations in preparation for the autumn-winter period. All 19 hydroelectric units at the company’s hydroelectric power plants underwent repairs. Extensive maintenance on three hydroelectric units, which were scheduled for this year, has been successfully accomplished.
The current situation and future strategies:
On July 24, the press service of the President of Kyrgyzstan announced that a state of emergency will be implemented in the country's energy sector for three years due to electricity shortages. This will be effective from August 1, 2023, until December 31, 2026. The press service clarified that the crisis is linked to low water inflow levels in the Naryn river basin and insufficient generating capacities amidst rapidly escalating energy consumption.
During a meeting with members of the Eastern Committee of the German Economy and representatives from leading German companies in Berlin, President Sadyr Zhaparov mentioned that the country had 51 small and medium-sized hydropower plants under construction, along with 16 solar and wind power stations of varying capacities, as of the end of September 2023.
According to the State Statistical Committee of Kyrgyzstan, the country generated 10.384 billion kilowatt-hours of electricity from January through September 2023, which is a rise of 9 percent compared to the same months in 2022 (8.985 billion kilowatt-hours).
Furthermore, it was announced that Kyrgyzstan plans to commission six new mini hydroelectric power plants (HPPs) in 2024, as per the report by Energy Minister Taalaibek Ibraev on the progress of the energy sector in the first half of 2023.
The list of these upcoming mini HPPs set to commence operations in 2024 includes:
Ak-Terek HPP (Jeti-Oguz district, Issyk-Kul region): 4 MW
Sarkent HPP (Leylek district, Batken region): 2 MW
Turgen HPP (Ak-Suu district, Issyk-Kul region): 5 MW
Shamsi HPP (Chuy district, Chuy region): 10 MW
Boz-Uchuk HPP (Ak-Suu district, Issyk-Kul region): 0.7 MW
Zhergez HPP (Ak-Suu district, Issyk-Kul region): 6.2 MW
The minister also mentioned the schedule for the launch of five large HPPs in 2024.
It was also announced that Kulanakskaya Hydroelectric Power Station (HPP) in the Naryn region of Kyrgyzstan is set to begin operation by the end of 2025.
The $88 million project financing will be guaranteed by the Financial Credit Fund, which is a division of the Ministry of Finance. The Eurasian Development Bank and the Russian-Kyrgyz Development Fund will each contribute an equal amount to this fund.
The Kulanakskaya HPP will have a capacity of 100 MW and an average annual electricity generation of 435 million kWh. During the construction phase, over 700 job opportunities will be created.
At the 5th Consultative Meeting of the Heads of State of Central Asia in Dushanbe on September 14, President Sadyr Zhaparov expressed the country's desire to revive cooperation concerning the utilization of energy resources from the Naryn river.
"I propose initiating efforts to reinvigorate and enhance cooperation based on the 1998 Agreement on the utilization of water and energy resources from the Naryn and Syr Darya rivers between Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan. This agreement aims to facilitate a balanced exchange of water and energy resources," he said.
