USAID Power Central Asia

2020 - 2025 | $39 Million

Central Asia has abundant renewable energy resources, considerable opportunities for energy efficiency, and a strong desire and foundation for increased regional energy cooperation. The USAID Power Central Asia Activity is assisting the five Central Asian countries — Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan — to meet their national and regional priorities in energy security and unlock the economic benefits of regional electricity trade. The Activity collaborates with national governments and energy stakeholders to address three objectives:

NATIONAL MARKET LIBERALIZATION REFORMS	CLEAN ENERGY	REGIONAL POWER MARKET
Support the Central Asian countries to update their national energy strategies and develop optimal market design, including legal, institutional, regulatory (LIR), and technical frameworks. USAID also works to establish cost reflective tariff methodologies and promote utility modernization and cybersecurity.	Support efforts by the Central Asian governments to scale up clean and renewable energy (RE) in the region by developing strategies and providing assistance to integrate clean energy and energy efficiency into energy planning. USAID promotes private sector investment in clean and renewable energy.	Build on USAID’s long-term support for regional energy cooperation by enabling cross-border electricity trade and open access to generation and transmission networks. The Activity also works to develop a regional electricity market model, harmonizing technical and market frameworks.

KAZAKHSTAN. USAID supports the piloting of new technologies and international best practices. For example, a proposed smart metering system will improve energy services for 182,055 beneficiaries. Support of renewable energy auctions has reduced wind energy prices to a record 2.6 US cents/ kilowatt-hour, among the lowest for the region. A total of $2.24 billion was leveraged by developers in new private investment and 60.28 million tons CO2 in projected greenhouse gas emissions were reduced or avoided through 2030.

THE KYRGYZ REPUBLIC. USAID partners with the Ministry of Energy to reform the energy sector and support the clean energy transition. This includes analyzing challenges to renewables’ integration to the grid, selecting the best sites for new projects, developing Power Purchase Agreements, and piloting small-scale projects, such as roof-top solar, to demonstrating the value of distributed energy. USAID supported the Ministry to establish a Gender Council and develop two web platforms for the Ministry and Regulator to improve services and provide transparency for consumers.

TAJIKISTAN. USAID helps Tajikistan model the power system, reduce distribution system losses, unbundle and corporatize utilities, promote competitive procurement for renewable energy, and design and implement off-grid RE and battery energy storage pilot projects. USAID and the Ministry of Energy and Water Resources have agreed on an Action Plan for the energy sector and developed key documents to support ongoing energy sector reforms, including Power Purchase Agreements, Commercial Agreements, a Grid Code, and a Metering Code to modernize Tajikistan’s energy market.

TURKMENISTAN. USAID helps to identify opportunities for renewable energy projects, supports the development of a large scale, comprehensive low carbon strategy for the energy sector, and assists in reducing methane emissions from the oil and gas sector. The Activity focuses on capacity building and cross-border trade in energy and ancillary services with the Government.

UZBEKISTAN. USAID helps develop the national energy regulatory agency and new electricity market, pilot distributed energy projects (including rooftop solar), improve corporate governance of the power sector, support renewable energy forecasting and integration of renewables to the grid, and explore modern hydrogen technologies to support low carbon goals, and cross-border trade in ancillary services. The Activity also has supported the development of a Renewable Energy Investor’s Guide with Uzbekistan.

REGIONAL. USAID facilitates regional and cross-border electricity trade. USAID launched a regional Clean Energy Forum, attracting 300 energy sector representatives. USAID also fosters partnerships between U.S. companies and local institutions, by launching the American Innovation Center for Central Asia and connecting the Tashkent State Technical University and the University of Delaware to develop a new curriculum for green hydrogen and engage General Electric Digital to procure a modern videowall for regional Supervisory Control and Data Acquisition, among others.

CROSS-CUTTING. Provides support through training and Gender initiatives. Funded full master’s degree scholarships in the energy sector to support young professionals and launched a Women and Youth Mentorship Network to promote gender equality and social inclusion.

IMPLEMENTATION PERIOD October 2020 – September 2025

BUDGET $39 million