Power Sector of Central Asia: Modernization and Energy Transition

The report analyzes the transformation of Central Asia’s energy sector and proposes a “middle path” strategy. It is based on the World Energy Council’s energy trilemma concept — the balance among security, affordability, and environmental sustainability. Against the backdrop of the global energy transition, with a record 585 GW of green capacity installed worldwide in 2024, Central Asia is facing rapid growth in electricity demand (up to +40% by 2030), high wear and tear on infrastructure (up to 70% of networks and thermal power plants) and dependence on coal and gas. At the same time, the region has enormous potential for the development of RE sources — solar, wind and hydro power — as well as opportunities for the introduction of nuclear and gas hybrid capacities. The proposed “middle path” strategy is based on a pragmatic combination of modernizing traditional generation, phased development of RE sources, introduction of energy storage systems and digitalization, as well as restoration of regional integration of energy systems to balance seasonal and resource differences. This approach will enable Central Asian countries to ensure reliable and affordable energy supplies, reduce their carbon footprint, strengthen energy security, and lay the foundation for sustainable economic growth in the 21st century.