The climate crisis and renewable energy have long been significant parts of the global agenda, shaping future projects and investments of states. In this context, Central Asian countries have also begun implementing major changes in their energy sectors. Sustainability, green energy, and natural resources have become critical aspects of the energy sector agenda in these countries. Significant investments in these areas from foreign countries are underway in Central Asia. With these investments and the plans being implemented by the countries, it seems possible for the energy sector in Central Asia to become more sustainable and environmentally friendly in the long term. Moreover, considering that Central Asian countries are important energy sources for neighboring countries and Europe, the transformation in this sector could contribute not only to addressing environmental issues in Central Asia but also in other regions.
Uzbekistan is one of the prominent countries in this transformation of the energy sector in Central Asia. Uzbekistan’s Minister of Energy, Zhurabek Mirzamakhmudov, stated that the country aims to increase the share of renewable energy sources in its energy consumption structure to 40% by 2030. In this context, renewable energy will form the basis for meeting the growing demand for electricity as part of the country’s growth strategy.[i] In line with these goals, the Asian Development Bank approved two loans totaling $400 million in August 2024 to support the Uzbek government’s efforts to strengthen its financial markets and develop a sustainable, market-oriented energy sector.[ii] Moreover, Uzbekistan plans to establish Central Asia’s first battery-powered solar power plant. For this project, a loan agreement worth $46.5 million has been signed with the Asian Development Bank and Abu Dhabi Future Energy Company PJSC.[iii]
China has demonstrated its interest in the region through investments in various sectors in Central Asian countries, including sustainable energy. In September 2024, the Kazakhstan-China Business and Economic Cooperation Forum was held. During the forum, the Green Silk Road initiative, an important component of China’s Belt and Road Initiative, was discussed. This initiative aims to promote sustainable development and support global green transformation efforts. Additionally, at the forum, the Kazakhstan International Center for Green Technologies and Investment Projects and the China-SCO Technology Transfer Center signed a Memorandum of Understanding to develop joint projects in green technologies.[iv]
When considering the transformation of the energy sector in Central Asia, China’s investments in the region can be seen as strategic steps for the Green Silk Road initiative. Kazakhstan’s energy sector collaborations are not limited to China. A draft law on the approval of the Agreement on the Development of a Wind Power Plant Project between the Governments of Kazakhstan and the United Arab Emirates has been put forward for discussion. The agreement aims to promote cooperation in combating global climate change by developing renewable energy sources between the two countries and to construct a wind power plant in the Jambyl region.[v]
Another noteworthy actor in the region is Kyrgyzstan. In September 2024, Kyrgyzstan’s Minister of Energy, Taalaibek Ibrayev, and Japan’s Minister of Economy, Trade, and Industry, Ken Saito, signed a memorandum of cooperation to implement joint projects in the field of green energy. The aim of this new partnership is to expand energy cooperation between Japan and Kyrgyzstan and to develop sectors such as energy efficiency, renewable energy, hydrogen energy, ammonia, carbon recycling, and high-efficiency power generation.[vi]
Sustainable energy projects in Turkmenistan are also noteworthy. The country is constructing its first 10 MW hybrid wind-solar power plant in the Balkan province, and in 2022, it signed an agreement with the United Arab Emirates for the construction of its first large-scale solar power plant. Furthermore, in 2023, Turkmenistan signed a contract with a Turkish company for the construction of a power plant. More recently, Turkmenistan took a significant step in the transformation of its energy sector by launching a project titled “EU Green Development for Turkmenistan: Policy Dialogue and Climate Action 2024-2028” in collaboration with the European Union. The project aims to support environmentally sustainable development in Turkmenistan using EU standards. This initiative will implement measures such as reducing methane and greenhouse gas emissions to promote renewable energy and energy efficiency. [vii]
The European Union’s renewable energy projects are not limited to Turkmenistan. In November 2022, the “Sustainable Energy Connectivity in Central Asia (SECCA)” project was launched. The project aims to strengthen national policies in the transition to a sustainable energy system and to enhance investment, capacity, and awareness in renewable energy and energy efficiency in the region. With a budget of 6.8 million euros, the project is being carried out under the EU’s Central Asia Strategy and seeks to boost the region’s underutilized sustainable energy capacity for economic, technical, and social reasons. [viii]
It can be said that the European Union is working to strengthen its energy sector cooperation with Central Asia and to enhance the diversity and sustainability of the region’s energy sources. The SECCA project, launched six months after the Russia-Ukraine War, may also be part of a strategy to reduce Europe’s energy imports from Russia. Indeed, Central Asia is an important energy source for Europe in contrast to Russia, and the EU may see the solution to the growing energy problem, exacerbated by the climate crisis, in harnessing Central Asia’s potential.
Europe is not the only entity recognizing the potential of the region. China’s collaborations with Central Asia and its investments in the region’s countries have reached substantial figures. Due to its geopolitical position and resources, Central Asia holds critical importance in China’s long-term projects. Investments in the transformation of Central Asia’s energy sector can be viewed as long-term efforts to secure the energy needed for China’s growing industry in the future.
The advancements and investments in renewable energy by Central Asian countries carry significant economic development potential for the region. Fully utilizing the region’s renewable energy sources in the future could be crucial for meeting the rising energy demand caused by global warming and an increasing world population. Central Asia’s renewable energy could serve as an alternative to the oil and gas resources of the Arabian Peninsula and the Caucasus.
Considering the region’s geopolitical location, the sustainable energy reforms in Central Asia signal that the region’s importance may increase in the future. However, a question remains as to whether investments from foreign countries will impact the independence of Central Asian governments. Given the economic growth of Asian countries, Central Asia’s renewable energy potential may become another point of competition between Asia and Europe in the future.
In conclusion, foreign investments in the renewable energy sector of Central Asian countries highlight the seriousness of the region’s potential in this area. The transformation towards a more sustainable energy sector in Central Asia is significant not only for the European Union and China but also for other regions. This transformation in Central Asia not only meets energy needs but also plays an important role in combating the climate crisis.
[i] Ismailov, V. (2024, September 27). “Uzbekistan plans to increase share of green energy to 40% by 2030 – The Times of Central Asia”, The Times of Central Asia, https://timesca.com/uzbekistan-plans-to-increase-share-of-green-energy-to-40-by-2030/, (Access Date: 05.10.2024).
[ii] Jalolova, S. (2024, August 1), “ADB to provide $400 million to Uzbekistan for energy reform – The Times of Central Asia”, The Times of Central Asia, https://timesca.com/adb-to-provide-400-million-to-uzbekistan-for-energy-reform/, (Access Date: 05.10.2024).
[iii] Times of Central Asia. (2024a, June 28). “Uzbekistan to Build Central Asia’s First Solar Plant with Battery Energy Storage System”, The Times of Central Asia, https://timesca.com/uzbekistan-to-build-central-asias-first-solar-plant-with-battery-energy-storage-system/, (Access Date: 05.10.2024).
[iv] Kwan, S. (2024, September 17). “Kazakhstan and China move to green cooperation – The Times of Central Asia”, The Times of Central Asia, https://timesca.com/kazakhstan-and-china-move-to-green-cooperation/, (Access Date: 05.10.2024).
[v] “Majilis to debate agreement between Kazakhstan and UAE on renewable energy. (2024, October 2)”. Kazinform, https://en.inform.kz/news/majilis-to-debate-agreement-between-kazakhstan-and-uae-on-renewable-energy-2b9470/, (Access Date: 05.10.2024).
[vi] Kwan, S. (2024a, September 10). “Kyrgyzstan and Japan agree to cooperate in green energy – The Times of Central Asia”, The Times of Central Asia, https://timesca.com/kyrgyzstan-and-japan-agree-to-cooperate-in-green-energy/, (Access Date: 05.10.2024).
[vii] Gill, D. (2024, September 17). “Turkmenistan and EU launch ambitious green development project for 2024-2028 – The Times of Central Asia”, The Times of Central Asia, https://timesca.com/turkmenistan-and-eu-launch-ambitious-green-development-project-for-2024-2028/, ( Access Date: 05.10.2024).
[viii] “European Union’s new project to boost sustainable energy in Central Asia. (n.d.)”, EEAS, https://www.eeas.europa.eu/delegations/kazakhstan/european-union%E2%80%99s-new-project-boost-sustainable-energy-central-asia_en?s=222, (Access Date: 05.10.2024).
