In a recent article, Odilbek Manabov, co-authoring with an independent researcher Farrukh Yunuskhojaev, examines the structural challenges facing Central Asia’s electricity sector and the prospects for establishing an integrated regional electricity market. The authors highlight the persistent seasonal imbalances in electricity generation and consumption across Central Asia, where hydropower-dependent Kyrgyzstan and Tajikistan experience winter shortages, while Kazakhstan, Uzbekistan and Turkmenistan possess complementary thermal generation capacities.
Despite the physical interconnection of national power systems, cross-border electricity trade accounts for only approximately 3% of regional demand. With electricity consumption projected to increase by around 40% by 2030, the article underscores the growing importance of regional coordination, infrastructure modernisation and more efficient electricity trading mechanisms.
Particular attention is devoted to the potential role of the Coordinating Dispatch Centre (CDC) Energia, headquartered in Tashkent, in facilitating regional electricity market integration. The authors examine the World Bank-supported Regional Electricity Market Interconnectivity and Trade (REMIT) Programme, which envisages the establishment of a pilot regional electricity trading platform. They assess the institutional, regulatory and technical conditions necessary for its effective operation, including transparent market rules, commercial settlement mechanisms, reliable transmission infrastructure and the separation of dispatch coordination from commercial market functions.
The article concludes that a regional electricity market could substantially improve energy security, reduce system costs, facilitate renewable energy integration and strengthen economic cooperation among Central Asian countries. For Uzbekistan, hosting the prospective regional market operator offers an opportunity to consolidate Tashkent’s position as a centre for regional energy coordination and economic integration. Nevertheless, the authors emphasise that the success of this initiative will depend on sustained interstate cooperation, institutional reforms and coordinated investment in electricity infrastructure.
* The Institute for Advanced International Studies (IAIS) does not take institutional positions on any issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of the IAIS.
