ASIATODAY.ID, WASHINGTON — The World Bank has approved the Regional Electricity Market Interconnectivity and Trade (REMIT) Program, a decade-long, multi-phase initiative set to revolutionize energy across Central Asia.
For the first time, Kyrgyzstan, Tajikistan, Uzbekistan, Kazakhstan, and Turkmenistan will be linked through a regional electricity market, boosting trade, transmission, and renewable energy deployment.
Phase one allocates $143.2 million in grants and concessional financing — $140 million from the World Bank’s IDA and $3.2 million from the Central Asia Water and Energy Program (CAWEP) — to the Kyrgyz Republic, Tajikistan, Uzbekistan, and the Coordinating Dispatch Center (CDC) Energia to kickstart market activities.
Electricity demand in Central Asia is skyrocketing, projected to triple by 2050 due to population growth, industrial expansion, and urbanization.
Yet, cross-border electricity trade today accounts for a mere 3% of total demand, while variable renewable energy contributes only 4% of generation, despite the region’s vast clean energy potential.
The REMIT Program is designed to harness these complementary energy resources: hydropower from Kyrgyzstan and Tajikistan, thermal power from Kazakhstan, Turkmenistan, and Uzbekistan, and solar and wind potential across the region.
Within ten years, the program aims to:
– Increase electricity trade to 15,000 GWh annually, enough for millions of people
– Expand transmission capacity to 16 GW
– Enable up to 9 GW of clean energy
– Strengthen regional grid resilience, reduce outages, and lower energy costs
“The REMIT Program supports Central Asian countries’ ambition to deepen energy cooperation and create a regional electricity market,” said Najy Benhassine, World Bank Regional Director for Central Asia on January 22, 2026.
“By 2050, stronger electricity connectivity and trade could generate up to $15 billion in economic benefits.”
Total indicative financing across three phases is $1.018 billion, aimed at designing and operationalizing the regional market, enhancing digital grid systems, and strengthening institutions. The initiative will also generate construction jobs and skilled positions to manage the market.
“Launching Central Asia’s regional electricity market will unlock large-scale renewable integration and attract private investment,” said Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia.
“Phase one alone could enable about 900 MW of new clean energy, leveraging $700 million in private investments.”
Future phases will expand the market platform, reinforce and digitalize regional grids, and strengthen institutions. CDC Energia will implement market and institutional activities, while national transmission companies invest in grid infrastructure. Oversight will be provided by a Regional Steering Committee of energy ministries and implementing agencies.
CAWEP, managed by the World Bank in partnership with the EU, Switzerland, and the UK, strengthens regional cooperation on water and energy security in Central Asia. (AT Network)
Follow Us at Google News and WA Channel