The green agenda is becoming a key topic for many countries, and Kyrgyzstan is no exception. The focus is on the development of environmentally friendly energy, which can minimize harmful emissions into the atmosphere.

In an interview with 24.kg, the President of the Association of Small Hydroelectric Power Plants Elvira Borombaeva spoke about the conditions and legislative changes needed to develop green energy in the republic.

— What steps do you think the government and the private sector should take to accelerate the development of renewable energy sources?

— Energy needs are growing daily, this is due to the population growth and technological development. It is important to expand the production and use of renewable energy sources to ensure a cleaner future for future generations. The state faces an ambitious task, and for the private sector, the key factor remains the political will of the country’s leadership and the improvement of the regulatory framework. Now there is will — over the past three years, we have seen positive changes. We were heard, we held many negotiations with the Cabinet of Ministers, and most of our proposals were accepted.

In 2021, at the international forum on renewable energy development in Bishkek, we outlined our requirements for the conditions necessary for the development of the sector. Now these conditions are being implemented. In 2022, the Law “On Renewable Energy Sources” was adopted, which changed the terms for providing benefits and introduced new preferences and guarantees for the sector. New terms appeared in the document, such as “microgeneration”.

But despite the progress, there are still a number of issues that need to be addressed. Among the most pressing is the transformation of land plots related to the water fund. We propose to give it to district administrations to save time and resources. In addition, we expect the creation of a working group to develop mechanisms for indexing electricity tariffs in national currency to foreign currencies.

There are aspects of the legal framework that governs our activities that are difficult to perceive not only for local businesses, but also for foreign partners. Therefore, for the sector to grow rapidly, we need to simplify regulations, especially given our deficit of 3 billion kilowatts. We need government support not only to meet domestic demand, but also to enter exports. To achieve this, we need clear and transparent rules.

To date, more than 130 applications for the construction of renewable energy facilities have been submitted to the Green Energy Fund under the Cabinet of Ministers, which confirms the willingness of businesses to invest. Small hydropower can also provide a significant share of new capacity in the regions and demonstrate the potential of the private sector to achieve these goals.

Photo provided by the editorial staff’s interlocutor. Elvira Borombaeva

— What changes in legislation and interaction with government agencies will make the renewable energy sector more attractive to investors?

— To achieve our goals, we need “long” money, simplified rules and minimization of state participation in the form of bureaucratic barriers. We are ready for dialogue and are confident that tripling the generation of renewable energy sources by 2030 is entirely possible. Moreover, with the creation of the necessary conditions, this result can be achieved even earlier. However, stable and clear rules, clear legislative regulation and fewer changes in the regulatory framework play a key role here.

We often encounter regulations from the Ministry of Energy that complicate the situation. For example, a few months ago one of them was cancelled, which led to confusion. We would like to see more interaction with the Ministry of Energy, especially considering that we are an organized sector. Every new regulation and decree that affects our work affects us and, unfortunately, reduces the trust of financial institutions and potential investors.

I think it is important to build a synchronized and balanced policy, where the state and the private sector will work closely together to achieve common goals.

— What difficulties does an investor face when wanting to build a hydroelectric power station in Kyrgyzstan?

— Now the main problem is the starting position. If we compare with European countries, then there the investor comes to a certain government agency, reports the approximate parameters of the future facility — the number of megawatts or kilowatts — and receives ready-made documents, including a feasibility study and a land plot. These plots are prepared in advance, regardless of the type of renewable energy, be it hydropower, solar or wind energy. All the necessary data is collected there and there is technical support. Engineers can professionally assess the plot and correctly design the territory for the successful implementation of the renewable energy project.

Kyrgyzstan has also taken steps in this direction, creating a Green Energy Fund, but it lacks sufficient technical resources and qualified specialists who could handle these tasks. As a result, investors have to look for a land plot on their own, which significantly complicates the process. The idea of ​​a “single window” may have been good, but so far it remains unrealized in practice.

Today, investors who want to start a project are forced to look for land and go through tender procedures themselves. This takes a lot of time and resources: they choose a place, determine the coordinates for the project, and then risk that another company may win the tender. The Ministry of Energy could perform these functions through one of its departments, without creating a new intermediary body.

Photo provided by the editorial staff’s interlocutor. Elvira Borombaeva

— What can you suggest to improve interaction between the state and the private sector in the field of renewable energy?

— I propose creating a permanent working group or council under the government to establish interaction between the state and business in the renewable energy sector. This would help us better coordinate our efforts and make more effective decisions.

The council could include representatives of the presidential administration, the Ministry of Energy, business associations and companies in the renewable energy sector, and experts. It would simplify communication and make the decision-making process more open. This is important to avoid situations where new rules are introduced without discussion with businesses, which leads to misunderstandings and unnecessary complications.

I think the council meetings could be held quarterly, and more often if necessary. At these meetings we could discuss new initiatives, such as changes in tariffs, before they are implemented. This would help identify potential problems in advance and adjust the rules so that they do not hinder the development of the industry. It is also important to record all proposals and make them available to market participants in order to strengthen trust and reduce bureaucracy.

In addition, we could work together to develop plans for the development of renewable energy infrastructure, take into account current energy needs and allocate zones for projects. For this purpose, it is useful to hold seminars and forums where businesses and government agencies can exchange ideas and find partners.

Another step is to create a single information platform with data on all renewable energy projects. This would allow market participants to receive up-to-date statistics and track changes in real time. The platform could also host instructions and requirements for investors and developers to facilitate the launch of their projects.

For example, in Europe, coordination councils help involve the private sector in strategic decisions, which creates a predictable and stable environment for investment. In Asia, accelerated renewable energy support programs are being implemented, including tax incentives and subsidies, and close interaction with businesses to coordinate initiatives.

https://24.kg/ekonomika/310980_zelenaya_energetika_skakimi_trudnostyami_stalkivayutsya_investoryi_vkyirgyizstane/