financial support

On  July 2nd, the Brussels Energy Club hosted a pivotal event at TUSIAD in Brussels, bringing together ambassadors from Central Asian countries to discuss energy strategies and economic cooperation.

The roundtable, titled “Central Asian Ambassadors Energy Roundtable: Priority Areas for Investment and Business Cooperation with the EU Following the European Elections,” facilitated an interactive dialogue among diplomats and industry experts. Key figures from Kyrgyzstan, Turkmenistan, Kazakhstan, Tajikistan, and Uzbekistan shared insights into their nations’ energy policies, challenges, and opportunities.

Central Asia has increasingly become a significant strategic partner for the EU in the energy sector. Historically seen as a link between China and Europe, the region now plays a crucial role in connecting and enabling the Eurasian economy.

Post-COVID economic recovery has accelerated this trend, positioning Central Asia as a vital cog in international supply chains, particularly along the Middle (trans-Caspian) Corridor. The region has seen billions of Euros invested in infrastructure, facilitating trade and economic growth.

However, Central Asia is not just an investment opportunity in energy transport infrastructure.

It is rich in raw materials essential to international partners and hosts numerous renewable energy projects, with significant investments from Gulf countries. The region’s demand for electricity is growing exponentially, with new generation capacity largely coming from renewable sources.

Despite this, conventional fossil fuels, especially natural gas, remain critical. The rise in commercial activities related to carbon capture, storage, methane emissions, and carbon trading highlights the expansive business opportunities in the region’s energy sector.

Kyrgyzstan’s Renewable Energy Ambitions

Ambassador Aidit Erkin of Kyrgyzstan highlighted the nation’s significant commitment to renewable energy. Kyrgyzstan, with its vast potential in hydropower, solar, and wind energy, aims to tackle climate change while ensuring energy security.

Projects like the Kambarata-1 hydropower plant are pivotal in this effort.

Ambassador Erkin emphasised the necessity of cooperation with the European Union (EU) to leverage advanced green energy technologies and financial support for infrastructure development. This collaboration is seen as crucial for optimising renewable energy projects and exploring additional sources.

Turkmenistan’s Dual Focus: Gas and Green Energy

Ambassador Sapar Palvanov of Turkmenistan outlined the country’s reliance on natural gas as a cornerstone of its economy while also focusing on transitioning to green energy. Turkmenistan is investing heavily in solar and wind energy projects, along with initiatives like the Smart City project, which embodies sustainable urban development.

The Trans-Caspian gas pipeline was highlighted as a key project to diversify energy export routes and enhance regional energy security. Ambassador Palvanov stressed the importance of international cooperation, particularly with the EU, to ensure a sustainable energy future.

Kazakhstan’s Green Energy Transition

Kazakhstan, represented by Deputy Ambassador Beibit Kulatayev, is making significant strides toward achieving carbon neutrality by 2060.

The country is heavily invested in renewable energy projects, particularly solar and wind power. Kazakhstan’s strategic partnership with the EU on critical raw materials and sustainable hydrogen value chains underscores its commitment to green energy.

Major projects supported by international companies aim to boost the country’s renewable energy capacity and reduce dependence on fossil fuels. Specific targets include reducing coal-generated electricity and increasing the production of hydropower and renewables by 2035.

Tajikistan’s Hydropower Potential

Deputy Ambassador Firdavs Usmonov of Tajikistan emphasised the country’s extensive hydropower resources, with plans to become a green energy leader by 2037.

The construction of the Rogun hydropower plant, one of the largest in the world, will significantly boost electricity production and export capacity. Tajikistan’s commitment to renewable energy aligns with global efforts to combat climate change, making it a key player in regional energy cooperation.

Efforts are also underway to diversify renewable energy sources, including solar and wind energy, to enhance energy security and sustainability.

Uzbekistan’s Energy Policy Priorities

Anvar Muminov, representing Uzbekistan, outlined the government’s key energy policy priorities for 2024, including promoting green energy, enhancing public-private partnerships, and modernising energy infrastructure.

Major projects, such as collaborations with Saudi Arabia’s ACWA Power on solar power development, reflect Uzbekistan’s drive to increase the share of renewables in its energy mix. The country’s strategic focus on energy efficiency and modernisation aims to improve resource use and support sustainable economic growth.

Regional Cooperation and Global Integration

The ambassadors underscored the importance of regional cooperation to address common challenges and leverage shared resources. Initiatives like the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000), which aims to export electricity from Central Asia to South Asia, exemplify the potential for collaborative energy solutions.

The discussions also highlighted the need for improved infrastructure and financial mechanisms to support the transition to renewable energy. Deputy Ambassador Usmonov emphasised that the CASA project is a key example of how regional cooperation can drive cross-border energy security and sustainability.

Financial Challenges and Opportunities

The discussion touched on the financial challenges faced by Central Asian countries in transitioning to green energy. The need for international financial support and investment was a recurring theme.

The ambassadors highlighted the potential of green bonds and other financial instruments to attract investment in renewable energy projects.

Deputy Ambassador Kulatayev noted that access to global finance is crucial for the energy transition, with various financial mechanisms, including green bonds, being explored to support renewable energy projects. International cooperation and support from development banks and financial institutions were identified as vital to this process.

Conclusion

The meeting in Brussels showcased Central Asia’s proactive approach to energy transformation and economic development. The region’s commitment to renewable energy, supported by strategic partnerships with the EU and other international stakeholders, positions it as a vital player in the global effort to achieve sustainable and secure energy futures.

As Central Asian countries continue to develop their energy sectors, the focus on green energy and sustainability will be critical in addressing the challenges of climate change and ensuring long-term economic growth. The collaborative efforts and shared vision discussed at this event highlight the potential for Central Asia to become a leader in renewable energy and sustainable development.

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