The EDB scenario for developing Central Asia’s energy system to reduce investment needs in its water and energy complex by US $11 billion

15 November 2022

Almaty, 15 November 2022. The optimal scenario for developing Central Asia’s energy system, as proposed by the Eurasian Development Bank (EDB), would reduce investment needs in the region’s water and energy complex by US $11 billion, slow increases in the average tariffs for consumers from 50 to 35 per cent, and reduce installed capacity needs from 84.0 GW to 74.8 GW, said Alexander Gareyev, Managing Director and Head of the EDB Directorate for Energy, at the Second Almaty Energy Forum.

The scenario was analysed as part of the EDB’s forthcoming report on Regulation of the Water and Energy Complex in Central Asia to be presented before the end of November 2022.

“The region has significant opportunities for development – its hydropower potential is yet to be fully tapped, the efficiency of water use could be boosted, and the countries have not yet fully set up their exchange of energy,” noted Alexander Gareyev.

The study assessed the state of water resources in Central Asia in the face of climate change. It also scrutinised the evolution of regulations in the region’s water and energy complex and examined international experience in regulating water basins.

In addition, the Bank reviewed 93 projects in the power generation, grid and water sectors to the tune of more than US $63 billion. The EDB is ready to finance key investment projects in Central Asia’s water and energy complex, including as part of syndicates and consortia. The Bank intends to assist in setting up mechanisms for the common electricity market and in finding the best approaches for implementing investment projects, as well as to formulate expert proposals to improve the legal and institutional framework in order to promote investment.

The development of the water and energy complex in Central Asia is one of the EDB’s three key mega-projects under its 2026 Strategy. The project will promote the efficient use of water resources and optimal development of electricity generation in Central Asian countries. It is also expected to open up opportunities for the joint operation of energy systems to enable economic growth and improve living standards.

Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For more than 16 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia and Tajikistan. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations. 

The EDB Media Centre:

Aigerim Akhanova, +77013283898 (Almaty)

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