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Kyrgyzstan|opinion & analysis|July 21, 2021 / 12:02 PM
World Bank says Kyrgyzstan's electricity sector urgently needs broad sector reforms

AKIPRESS.COM - The electricity sector in Kyrgyzstan is characterized by aged infrastructure and significant losses, according to the World Bank's report on state of Kyrgyz energy sector released in June 2021.

About half of generation capacity is beyond useful service life. Many transmission towers are in built in 1960s-70s and as such are in critical condition.

Transmission and distribution network decay, resulting in high technical losses. The country barely meets domestic demand and is likely to fall short of meeting export obligations in coming years. New generation capacity is needed due to aging assets, hydrology cycles, increasing domestic demand, and opportunity for regional trade.

Kyrgyzstan has one of the lowest residential tariffs in the world: low tariff is applied for social reasons; however, it weakens the sector as evidenced internationally.

There is urgent need for broad sector reforms in Kyrgyzstan.

Adequate, reliable and financially sustainable path for the sector

– Tariff reforms towards cost recovery and sector debt/fiscal burden alleviation

– Protection for vulnerable population groups through enhanced social safety net

– Tariff reforms accompanied by communication and outreach

– Institutional and corporate governance strengthening

Expand renewable energy generation capacity – hydro along with solar and wind

– Further expansion of hydropower capacity

– Diversification of generation and exploration of opportunities in solar and wind resources

– Development of enabling renewable energy regulations and competitive procurement approaches for private investment

Promote energy efficiency on supply- and demand side

– Improving reliability and efficiency in transmission and distribution networks

– Scaling up demand side energy efficiency, including in building, commercial and industrial sectors

– Creating enabling policy and regulatory framework for demand side energy efficiency

– Expanding regional connectivity and trade (CASA-1000 Project).

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