OMM Newsroom
Deeper energy cooperation among Central Asian countries could bring economic benefits of up to $640 million a year. However, strained electricity grids could limit the region’s ability to realize that potential. Regional electricity shortages and growing pressure on the grid pose a particular risk to Kazakhstan.
Electricity trading among Central Asian countries resumed in 2024, but the region is still struggling to meet peak demand, AnewZ reports. A report by the Eurasian Development Bank (EDB) says that about 18% of the region’s installed electricity generation capacity was unavailable in December 2024 because of fuel and water shortages, maintenance work and grid constraints.
The figures point to a broader regional problem: Central Asia has enough capacity to generate electricity, but its systems cannot always deliver power where it is needed most when demand peaks.
Pressure on Kazakhstan’s electricity grid is rising
The risks are particularly acute in Kazakhstan. The country’s southern regions depend on electricity transmitted from the north. Power lines linking the northern and southern parts of the country are already overloaded, with transmission volumes exceeding permitted limits during periods of high demand.
Because Kazakhstan’s electricity system is connected to those of neighboring countries, disruptions elsewhere in Central Asia can place additional strain on its grid. If pressure becomes too great, emergency disconnections between national power systems could occur.
Renewable energy is increasing grid needs
The rapid expansion of solar and wind power is adding to pressure on electricity grids. Central Asian countries are investing in these energy sources, but grid development is not keeping pace with the growth in generation capacity.
Uzbekistan’s renewable energy capacity could exceed 11 gigawatts by 2028. However, grid constraints and insufficient flexible backup generation could leave about 13.6% of potential output unused.
Kazakhstan faces similar risks as it expands renewable energy projects, particularly in its southern regions, where transmission capacity is already under pressure.
Building new power plants alone will not solve the problem. The region also needs infrastructure capable of transmitting additional electricity.
Without grid upgrades, energy storage and more efficient supply management, some renewable energy projects may have to curtail production. This could weaken their financial viability.
Cooperation could bring up to $640 million in annual benefits
The EDB estimates that closer cooperation in the energy sector could bring Central Asian countries economic benefits of up to $640 million a year.
By trading electricity, sharing reserve capacity and supporting one another during shortages or emergencies, countries could make more efficient use of existing power plants.
Stronger regional coordination could also help prevent renewable electricity from going to waste, particularly when supply and demand patterns differ across countries.
Agreements between countries alone will not be enough to secure these benefits. Governments need to invest in transmission networks, establish common electricity trading rules and agree on how to share the costs of maintaining reliable supply.
For Kazakhstan, strengthening transmission lines between the northern and southern regions remains a key priority. The country is seeking to ease pressure on its grid and benefit from regional energy cooperation.
