Energy Integration in Central Asia
Even during the Soviet era, the region had a unified energy system linking Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. Today, the idea of an electricity grid that optimises infrastructure is gaining traction again, given that energy demand in the region could rise by around 40 per cent by 2030.
Manila (AsiaNews) – The President of the Asian Development Bank, Masato Kanda, has urged all Asian countries to interconnect their energy systems more actively and to develop cross-border electricity trade, emphasising that no country can tackle energy security issues on its own.
This appeal is particularly relevant for Central Asia; the region already had a shared energy network, known as the “Central Asian Power Ring”. Today, this idea is being revived, and Tajikistan is also gradually reconnecting to the unified energy network.
Kanda spoke about the need for interconnection at the 2026 Asian Clean Energy Forum in Manila, emphasising that delays could lead to higher energy prices, slower economic growth and a loss of opportunities for millions of people.
Against this backdrop, the Bank is promoting the Pan-Asian Energy Grid Initiative (PAGI). Its aim is to connect national and regional energy systems, and to move from independent inter-state projects towards more coordinated electricity trade. PAGI is expected to raise billion by 2035; the initiative aims to connect 22,000 kilometres of transmission lines, integrate 20 GW of renewable energy, reduce emissions in the energy sector and create hundreds of thousands of jobs.
The idea of interconnecting energy systems in Central Asia is not new, as energy expert Khamidžon Arifov points out: even during the Soviet era, the region had a unified energy system linking Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
According to Arifov, the system functioned on the basis of complementarity; Kyrgyzstan and Tajikistan relied on hydroelectric power, whilst Kazakhstan, Uzbekistan and Turkmenistan relied on thermal power, gas and coal. In summer, the mountainous countries generated more electricity from hydroelectric power, and in winter they could count on support from their neighbours.
During the Soviet era, energy production and the management of reservoirs were coordinated by a central control centre in Tashkent, but following the collapse of the USSR, this system was disrupted: individual countries began to build their own energy security, and the joint management of resources weakened.
Today, the region is once again moving towards integration, a trend driven by growing demand for electricity, deteriorating infrastructure and the need to integrate renewable energy sources. Nikolaj Podguzov, president of the Eurasian Development Bank, notes that “the expansion of cross-border interconnections can reduce systemic risks, mitigate seasonal variations and attract investment”.
Tajikistan has already begun its return to the unified system: Energy Minister Daler Juma stated that the south-western part of the country’s energy system was connected to the grid in June 2024, and the connection of the northern region is expected to be completed in the first half of 2026.
For Tajikistan, experts say, it is important to calculate in advance how much electricity the country can export without compromising domestic consumption. They also emphasise the need for regional integration not only for electricity trade but also for the sustainability of the entire system.
According to estimates by industry bodies, electricity demand in Central Asia could rise by around 40 per cent by 2030, increasing from 270 to 370 billion kWh, and infrastructure remains a key challenge: in some countries, up to 70 per cent of electricity grids and thermal power stations have reached the end of their life cycle, and transmission and distribution losses amount to 15–20 per cent.
There are also other challenges, linked to differing tariff approaches, subsidies and regulations, a lack of reserve capacity, and the political sensitivity of agreements on water and energy. Therefore, the Energy Ring is not merely a technical project, but also a matter of trust, rules and long-term commitments amongst the countries of Central Asia.
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