Construction and operation of the 100 MW Kulanak Hydropower Plant

The project is planned on a 485.41 ha site, 0.8 km below the confluence of the Naryn and At-Bashy rivers and 40 km west of Naryn, the administrative centre of Naryn Region and Naryn District in the Kyrgyz Republic. Electricity will be sold to local consumers through Electric Power Stations OJSC at 3.52 som/kWh. The tariff was set by the Kyrgyz energy regulator's Order No. 178 of 19 November 2021 and applies for 15 years after commissioning, with annual inflation adjustments.

The project will build and operate the 100 MW Kulanak diversion-type hydropower plant on the Naryn River near Kulanak village. Planned average annual generation is 435 million kWh. The plant is of regional and national significance and is intended to meet baseload demand in the Kyrgyz Republic's power system.

Government support

• The project is included in the Kyrgyz Cabinet of Ministers' action plan for the National Development Programme to 2026, approved by Resolution No. 352 of 25 December 2021.
• It is eligible for a customs tariff preference under Government Resolution No. 503 of 26 October 2018 on priority activities and sectors for investment projects.
• Cabinet Resolution No. 191 of 8 April 2022 authorised Naryn PP LLC to implement the project and recommended that Electric Power Stations OJSC purchase its electricity after commissioning.
• Cabinet Resolution No. 196 of 8 April 2022 allocated land to Naryn PP LLC to build and operate the 100 MW plant.
• Energy regulator Order No. 178 of 19 November 2021 set the 3.52 som/kWh tariff for 15 years, adjusted annually for inflation.

Alignment with the Bank's strategy

The Bank's Strategy to 2026 gives priority to the green economy and sustainable development projects that improve the environment, conserve resources and have positive social effects. Kulanak forms part of the Water and Energy Complex key investment megaproject and aims to maximise its regional integration impact. It supports the Bank's 2022–2026 strategy for the Kyrgyz Republic, including implementation of a key investment megaproject and the priority to modernise and build hydropower and transmission infrastructure.

In 2020, the EDB Council approved a renewable energy programme to 2024, with up to US$600 million for projects totalling 500 MW. It aims to expand the Bank's renewable energy portfolio and help member states develop green energy. The Kulanak project is expected to use project finance, a target product for the Bank.

Socioeconomic and environmental impact

The project is expected to support sustainable growth and create 770 jobs during construction and 65 in operation. Additional economic output is estimated at an average of US$16.5 million a year, with approximately US$42 million in tax payments over 2022–2042. Renewable power will reduce greenhouse gas emissions, while irrigated farmland is expected to expand from 4,650 to 6,769 ha.

The plant will improve energy efficiency and security and reduce the electricity shortage in a region that currently has only one 40 MW hydropower plant. It will improve an ageing power supply system. The hydropower equipment supplier is among the leading companies in Europe and worldwide.