A major energy project of strategic importance for Kyrgyzstan was launched during the Spring Meetings of the World Bank and the International Monetary Fund in Washington, D.C., the Kyrgyz Ministry of Energy reported, according to Kabar. This initiative is supported by the World Bank and its affiliate, the International Development Association, as part of the REMIT (Regional Integration and Electricity Market Development) program.
It aims to modernize Kyrgyzstan's energy sector and integrate it into the unified energy market of Central Asia. The REMIT program aims to create an open and efficient regional electricity market between Kyrgyzstan, Kazakhstan, Uzbekistan, and Tajikistan. The project will introduce modern electricity trading mechanisms, and, along with long-term contracts, a pilot platform in the day-ahead market format will be launched.
The program also includes digitalization of energy systems, optimization of energy flow management, and the widespread integration of renewable energy sources. These steps will contribute to strengthening energy cooperation between the countries of the region, efficient resource use, and increased mutual trust.
In the first phase of the program, Kyrgyzstan will receive $40 million in funding, which will be used directly for the development of energy infrastructure. This includes a complete modernization of the 220 kV Torobaev and 220 kV Kristall substations, whose equipment has been in operation for over 50 years and is obsolete.
These substations supply electricity to several districts in the Jalal-Abad region. The project also includes the construction of a 220 kV Kristall-Yulduz transmission line to the border with Uzbekistan. Funds will also be allocated to preparing feasibility studies, conducting design and engineering surveys, developing tender documentation, organizing procurement procedures, assessing environmental and social impacts, implementing monitoring, project management, and funding consulting services.
All of this work is being implemented in accordance with the head of state's instructions to modernize the energy sector and strengthen the country's energy security. Earlier, it was reported that the World Bank had approved financing for a major regional environmental project “Blueing the Caspian Sea: Building Capacities for Pollution Management and Biodiversity Conservation."