Water and Energy Complex of Central Asia

Water and Energy Complex of Central Asia

Sector: Energy, water infrastructure, climate finance
Countries:
  • Kyrgyzstan
  • Kazakhstan
  • Tajikistan
  • Uzbekistan

The Central Asian Water-Energy Complex is an interconnected transboundary system of hydro facilities, reservoirs, power plants, electricity grids, irrigation canals and water-supply infrastructure.

Its resilience determines the development of agriculture and industry, the quality of life and the pace of regional integration. The key challenge of the complex is to reconcile the winter energy needs of upstream countries with the spring-summer irrigation needs of downstream countries.

The load on the system is growing fast: by 2031 water withdrawal in the region may increase by 5–10%, and electricity demand by 40%. To meet this challenge the EDB is delivering a megaproject combining the construction of hydro, solar and wind power plants, the modernisation of thermal generation, the preparation of large hydro cascades, the reconstruction of water infrastructure, and the rollout of digital water metering and modern water-saving technologies.

The goal of the megaproject is to simultaneously reduce water losses, increase the reliability of power supply and create a practical basis for long-term coordination along the «water – energy – food» nexus in Central Asia.

Central Asian Water-Energy Complex

Central Asia
by 2030

by 5-10% water withdrawal will grow if current trends persist
by 40% electricity demand will grow
up to 90% untapped hydropower potential

Complex potential

over $9.7 bn investment potential in the water complex
up to $80 bn electricity demand will grow
twofold the efficiency of irrigation water use can be increased

In 2021-2026, under its research programme on the Central Asian Water-Energy Complex, the EDB prepared a series of reports. They model long-term development scenarios, formulate operating principles and conceptual development approaches, identify investment priorities and propose integrated solutions for the complex.

Contribution to sustainable development

The project makes a significant contribution to achieving the Sustainable Development Goals (SDGs):

  • SDG 2 «Zero Hunger» – by ensuring the necessary level of water for agriculture amid water scarcity in Central Asia;
  • SDG 3 «Good Health and Well-being» – by ensuring the necessary water quality, which underpins public health in Central Asia;
  • SDG 6 «Clean Water and Sanitation» – the central goal of the EDB research programme on the Central Asian Water-Energy Complex;
  • SDG 7 «Affordable and Clean Energy» – the central goal of the EDB research programme on the Central Asian Water-Energy Complex;
  • SDG 8 «Decent Work and Economic Growth» – by providing the necessary water and energy resources to the fast-growing Central Asian region;
  • SDG 9 «Industry, Innovation and Infrastructure» – by identifying specific needs and a long-term vision for water-energy infrastructure that underpins the socio-economic development of Central Asia;
  • SDG 13 «Climate Action» – by promoting the integration of climate-response measures into national policies, strategies and planning in Central Asian countries.

Facts and figures

Key indicators for the development of the water-energy sector:

Water sector

80%

of water is used for irrigation

40%

is lost in irrigation canals and in the field

50%

of irrigated land is affected by salinisation

9.9 mln people

lack access to safe drinking water

up to 80%

is the wear of water-supply and sewerage networks

20-30%

of annual water savings can be achieved with laser land levelling (while raising yields by 1.3-2.3 times)

12-15%

of annual water savings can be achieved with digital water metering

Energy sector

+40%

growth in electricity demand by 2030 (from 270 to 370 bn kWh)

over 60%

of distribution networks need replacement or major overhaul

15-20%

losses in transmission and distribution networks

up to 70%

of energy infrastructure is critically worn

+63 GW

of new capacity by 2035 under the «middle path» strategy

30-45%

savings on capital expenditure under the «middle path» strategy compared with the «green maximalism» scenario

5 times

lower carbon intensity under the «middle path» strategy compared with the conservative scenario

Directions for developing the Central Asian Water-Energy Complex

Water sector

The priority is to modernise irrigation as the largest water consumer in the region while improving the reliability of drinking-water supply in rural areas and cities.

  • 1. Renovation of irrigation networks

    Rehabilitating canals, drainage and on-farm infrastructure to reduce water losses and preserve irrigated land.

  • 2. Digital water metering

    Accurate metering, digital monitoring and managed water distribution as the basis for water saving and a new irrigation economy.

  • 3. Water-saving irrigation technologies

    Modern irrigation, laser levelling and new agricultural technologies for higher yields and water savings.

  • 4. Water economics and PPP

    Tariffs, water-user associations and PPP mechanisms for sustainable irrigation financing.

  • 5. Safe water for rural areas

    Groundwater, local treatment and group water-supply systems for rural territories.

  • 6. Treatment facilities for cities

    Modernising urban water supply and sewerage through new treatment capacity, durable materials and digital control.

Energy sector (under the «middle path» logic)

The «middle path» strategy implies a balanced transition: modernising existing generation, developing renewables and storage, upgrading grids and strengthening regional integration.

  • 1. Modernising existing generation

    Extending the life of thermal and hydro plants where effective, for reliable and affordable power supply during the transition.

  • 2. Flexible capacity and storage

    Gas reserves, BESS and pumped-storage hydro to balance renewables, cover peaks and improve system resilience.

  • 3. Smart grids and dispatch

    Upgrading networks, SCADA/EMS, smart sensors and meters to cut losses and integrate new capacity.

  • 4. Gradual growth of low-carbon generation

    Phased development of renewables, hydropower, nuclear and distributed generation without losing system reliability.

  • 5. New power-market rules

    Transparent grid access, PPAs, the development of ancillary-services markets and demand management for a new sector architecture.

  • 6. Regional reserves and flows

    Joint reserves, coordinated regulation and a regional electricity market for a more resilient system.

Common institutional solutions

Water and energy require a common governance framework: cross-sectoral coordination, strong project preparation, blended financing and phased tariff reform with social protection.

1. Water and energy coordination

Strengthening the mechanism for cooperation between government bodies, regions and operators to synchronise decisions across the two sectors.

2. Central Asian water-energy consortium

A shared platform for delivering large transboundary projects and coordinating with development banks.

3. Strong project preparation

Restoring design and research capacity and building a quality pipeline of infrastructure projects.

4. Blended project financing

A combination of public resources, MDBs/IFIs, PPP and private capital to close the investment gap.

5. Tariffs with social protection

A phased transition to a more sustainable tariff model while maintaining targeted support for the population.

6. Skills and digital management

Training engineers and deploying modern digital systems as the basis for the resilience of both sectors.

Analytics on the Central Asian Water-Energy Complex

View all