On January 22, the World Bank’s Executive Board approved the 10-year Regional Electricity Market Interconnectivity and Trade (REMIT) initiative. This ambitious initiative aims to establish Central Asia’s first regional electricity market. Its objectives include facilitating cross-border power trade, expanding transmission capacity, and laying the groundwork for large-scale renewable energy integration across the region.

Under current trends, Central Asia’s electricity demand is projected to triple by 2050. However, cross-border electricity trade currently accounts for only 3% of the region’s total demand. The REMIT initiative seeks to harness Central Asia’s diverse and complementary energy resources: hydropower in Kyrgyzstan and Tajikistan; coal and natural gas thermal power in Kazakhstan, Turkmenistan, and Uzbekistan; and the region’s rapidly growing solar and wind energy potential.

Over the next decade, REMIT targets:

1. Increase regional electricity trade to at least 15,000 GWh annually, sufficient to meet the needs of millions of consumers.
2. Triple regional transmission capacity to 16 GW.
3. Achieve up to 9 GW of clean energy grid integration.

This initiative seeks to enhance regional energy security, reduce power outages, lower electricity costs, and foster a more resilient and interconnected grid system.

The project’s total investment is estimated at $1.018 billion, to be deployed in three phases. These funds will support establishing and operating regional energy markets, upgrading transmission infrastructure, introducing digital technologies to enhance grid reliability, and strengthening regional energy institutions and coordination mechanisms. The investment is also projected to create construction-related jobs and high-skilled positions tied to market operations.

In the first phase of the program, Kyrgyzstan, Tajikistan, Uzbekistan, and the Central Asian National Dispatch Centers (CDC) Energy Company will benefit from a total of $143.2 million in grants and concessional financing. This includes $140 million from the World Bank’s International Development Association (IDA) and $3.2 million from the Central Asia Water and Energy Program (CAWEP).

Naji Benhassin, World Bank Regional Director for Central Asia, stated: “The Regional Energy Market Initiative (REMIT) project supports Central Asian countries’ vision to deepen energy cooperation and establish a regional electricity market. This will enhance the efficient use of energy resources, including cross-border deployment of clean energy, improve reliable and affordable electricity supply, and create jobs. Strengthening regional interconnectivity is projected to yield up to $15 billion in economic benefits by 2050.”

Charles Comier, World Bank Regional Infrastructure Director for Europe and Central Asia, added that the REMIT project will enhance energy security and unlock private sector investment. “Phase I alone is projected to add approximately 900 megawatts of new clean energy capacity and leverage $700 million in private investment. This will pave the way for building a more resilient, interconnected power system in this dynamic region,” he said.

CDC Energia will lead the implementation of market and institutional activities, while the National Transmission Company will oversee infrastructure investments.