The last 18 months have seen a flurry of activity in the Central Asian renewable energy sector with countries seeking to incubate the industry from a standing start. The sudden drive for clean energy has been prompted by a confluence of motivations:
a) projected increase in demand for power in these countries due to increased industrialization and improvement in living standards;
b) to capitalize on abundant renewable energy resources to meet climate change targets in the Paris Agreement; and
c) to free more hydrocarbon reserves to be supplied to international markets.
The electricity markets in the region have traditionally been dominated by vertically integrated, state-owned monopolies relying predominantly on burning oil and gas (often in mature, inefficient power plants) as well as hydropower for their energy generation.
Thanks to Saloni Patel, who contributed to this publication.