QAZAQ GREEN. The World Bank has approved a decade-long program aimed at establishing Central Asia’s first regional electricity market, strengthening cross-border power trade, and improving energy security and affordability across the region.
The decision was taken on January 22 by the World Bank’s Board of Executive Directors, which endorsed the Regional Electricity Market Interconnectivity and Trade (REMIT) Program. The initiative will be implemented in three phases over ten years and is designed to integrate national power systems, expand transmission capacity, and support large-scale deployment of renewable energy.
During the first phase, the Kyrgyz Republic, Tajikistan, and Uzbekistan, along with the Central Asian Countries’ Coordinating Dispatch Center (CDC) Energia, will receive a total of $143.2 million in grants and concessional financing. This includes $140 million from the World Bank’s International Development Association and $3.2 million in grants from the Central Asia Water and Energy Program.
Electricity demand in Central Asia is rising rapidly and could triple by 2050 if current trends continue. Economic growth, population increases, industrial expansion, and urbanization are intensifying pressure on energy systems, underscoring the need for reliable, affordable, and sustainable electricity supply.
Despite significant potential, regional electricity trade currently accounts for only about 3 percent of total demand, while renewable energy sources contribute roughly 4 percent of power generation. This is despite the region’s abundant and complementary clean energy resources, which remain largely underutilized.
The REMIT Program seeks to better align these resources by combining hydropower capacity in the Kyrgyz Republic and Tajikistan, thermal generation in Kazakhstan, Turkmenistan, and Uzbekistan, and the expanding solar and wind potential across all Central Asian countries.
Over the next decade, the program aims to raise regional electricity trade to at least 15,000 gigawatt-hours per year, more than triple transmission capacity to 16 gigawatts, and enable the integration of up to 9 gigawatts of clean energy. According to the World Bank, deeper regional integration is expected to reduce power outages, strengthen system resilience, and lower electricity costs for households and businesses.
Total indicative financing for the REMIT Program is estimated at $1.018 billion across all three phases. Investments will focus on developing and operating the regional electricity market, upgrading and digitalizing transmission networks, and strengthening regional institutions and coordination mechanisms. The program is also expected to generate jobs in both infrastructure construction and high-skilled market and system operations.
The first phase alone is projected to support the integration of around 900 megawatts of new clean energy capacity and mobilize approximately $700 million in private investment, laying the groundwork for a more interconnected and resilient regional power system.
CDC Energia will be responsible for implementing market and institutional components, while national transmission system operators will carry out grid infrastructure investments. Overall oversight will be provided by a regional steering committee comprising energy ministries and implementing agencies from participating countries.
The Central Asia Water and Energy Program, which supports the initiative, is a multi-donor trust fund managed by the World Bank in partnership with the European Union, Switzerland, and the United Kingdom, focusing on strengthening regional cooperation in water and energy security.