Before 1917, the electric power industry in Kyrgyzstan, as a separate branch of industry, hardly existed. In 1913-14, only 5 small power plants operated with a total capacity of 265 kW: the thermal station of the Kyzyl-Kyisky coal deposit (121 kW), two hydropower plants in the city of Osh (120 kW), the Bishkek diesel power station (16.5 kW), and the Karakol diesel power station (7.5 kW).
In 1929, the Small Alamyudun Hydropower Plant (410 kW) was constructed. Since 1923, electricity has been used for street lighting, and since 1930, it has been utilized in agriculture. By 1940, the total capacity of power plants in Kyrgyzstan was 19.6 thousand kW, with energy production amounting to 51.6 million kWh.
In the overall energy balance of the republic, hydropower plays a significant role, which is associated with the presence of vast hydropower resources, with a gross hydropower potential of 142 billion kWh, technical potential of 73 billion kWh, and economic potential of 48 billion kWh. In terms of the last two indicators, Kyrgyzstan ranks 3rd in the CIS, second only to the Russian Federation and Tajikistan. The high availability of hydropower resources has allowed for the rapid development of the republic's energy complex, which has become a major producer of electricity in the Central Asian region since the early 1980s, supplying over 50% of the electricity generated to the United Energy System of Central Asia.
The electric power industry of the republic is the backbone of the fuel and energy complex and the economy as a whole. In 1999, the share of the electric power industry in the structure of the gross domestic product was approximately 19%. Annually, up to 2.5 billion kWh is exported to neighboring countries. In 2000, there were 17 power plants operating in the Kyrgyz Republic with a total capacity of 3.6 million kW, including 15 hydropower plants and 2 thermal power plants. The powerful hydropower plants built in the lower reaches of the Naryn River form a cascade of hydropower plants consisting of 5 plants. A unique hydropower and irrigation facility is the Toktogul Hydropower Plant (installed capacity — 1200 thousand kW), commissioned in 1976. Its connection to the energy system is made through two high-voltage overhead lines (500 kV). Other unique energy facilities of the Naryn cascade include the Kurp-Sai Hydropower Plant (800 thousand kW) and the Uch-Korgon Hydropower Plant (180 thousand kW). The Uch-Korgon Hydropower Plant was commissioned in 1962, and the Kurp-Sai Hydropower Plant in 1982. The connection of the Kurp-Sai Hydropower Plant to the energy system is made through overhead power lines (110 and 220 kV), and the Uch-Korgon Hydropower Plant is connected via 110 kV. Additionally, among the large hydropower plants in the republic are the At-Bashy Hydropower Plant (40 thousand kW) and the not fully completed but operational Tash-Kemur Hydropower Plant (450 thousand kW) and the Shamaldy-Sai Hydropower Plant (240 thousand kW). The Tash-Kemur Hydropower Plant was commissioned in 1987, and the Shamaldy-Sai Hydropower Plant in 1995.
Kyrgyzstan also has 13 small hydropower plants (installed capacity — 42 MW) with an annual output of 125 million kWh.
In addition to hydropower plants, there are two thermal power plants (TPP) operating in the republic — in the cities of Bishkek and Osh. The installed electric capacity of the Bishkek TPP is 609 thousand kW, and the heat supply capacity is 1,157.4 Gcal/h; the electric capacity of the Osh TPP is 22 MW, and the heat supply capacity is 375 Gcal/h. The thermal power plants supply electricity and thermal energy to Osh and Bishkek.
The total length of the transmission and main power lines of the joint-stock company "Kyrgyzenergo" with voltages of 110-500 kV is 6.4 thousand km, 35 kV — 4.3 thousand km; distribution power networks of 0.4-6-10 kV — 58.4 thousand km; 508 transformer substations — 35 kV and above, more than 18.3 thousand transformer substations — 10/0.4 kV.
The energy system operates unique overhead power lines with a voltage of 500 kV, which run at heights of up to 3500 m above sea level. A centralized dispatch control system for electrical networks at all levels has been implemented. High-frequency communication channels and radio relay communication lines are used for dispatch and technical management — all of them are automated and interconnected with the central communication node and among themselves. A characteristic feature of the republic's hydropower facilities is that they are integrated into a common energy system of the Central Asian states. The republic generates 12 billion kWh of electricity annually. The energy system has stable connections with the Central Asian states through main networks of 220 and 500 kV. Through the main networks of Kazakhstan, it is possible to connect to the energy system of the Russian Federation. Part of the electricity is exported by Kyrgyzstan to Kazakhstan, Uzbekistan, and China. In the fall of 2000, Kyrgyzstan entered into parallel operation with the energy system of Russia — through the well-known Central Asian "ring of life" of the NEP 500 kV, which is expected to significantly enhance the reliability and resilience of not only the entire unified energy system of Central Asia but also that of Kyrgyzstan in particular. For the first time in 2000, all new and reconstructed old facilities were put into operation.
Electric power occupies a crucial place in the fuel and energy complex of the Kyrgyz Republic, with 97-98% managed by the joint-stock company "Kyrgyzenergo," which operates on the principles of full economic accountability with its 16 various enterprises engaged in the production, transmission, and distribution of electric and thermal energy throughout the republic, and three joint-stock companies specializing in project and construction work. Since 1996, corporate governance has been introduced.
According to the results of 1999, the total commodity output of the joint-stock company "Kyrgyzenergo" amounted to 4,303.9 million soms, including 4,275.3 million soms from the electricity supplied. The costs for its production amounted to 2,653.4 million soms, including 2,628.5 million soms for the supplied energy. The cost of 1 kWh of electricity was 20.83 tyiyn, and 1 Gcal of thermal energy was 354.9 soms. For the year, revenue from energy sales amounted to 4,027.1 million soms, and the profit amounted to 1,343.0 million soms. Losses from other sales amounted to 730.3 million soms.
Electricity production in 1999 amounted to 13,119.2 million kWh, which is 1,549.2 million kWh more compared to the previous year. Hydropower plants generated 12,137.5 million kWh, which is 2,198.6 million kWh more compared to 1998. Thermal power plants produced 981.7 million kWh, which is 649.4 million kWh less compared to the production in 1998 due to the cessation of gas supply during the summer period.
As of January 1, 2000, 2,068.4 thousand Gcal of thermal energy was supplied to consumers — 74.7% of the level of 1998 (1998 — 2,767.9 thousand Gcal). Electricity consumption in 1999 amounted to 11,222.4 million kWh (378.3 million kWh more than in 1998). Total electricity losses in 1999 amounted to 28.92% (3,740.0 million kWh). In 2000, 14,886.3 million kWh was produced (1,327.1 million kWh more than in 1999). The production of a large amount of electricity is associated, firstly, with an increase in exports, and secondly, with the growth of electricity consumption within the country due to a decrease in natural gas supplies to the republic. Accordingly, the volume of energy sales increased to 6,969.2 million soms, which is 2,665.2 million soms more than in 1999. In the same year, 3,102 million kWh was exported to Uzbekistan and Kazakhstan. This allowed for the repayment of the debt of the joint-stock company "Kyrgyzenergo" to Uzbekistan for the received natural gas. The export of electricity to Kazakhstan created conditions for supplying the Bishkek TPP with the necessary volumes of coal.
Unlike other Commonwealth states, electricity consumption in the Kyrgyz Republic increased from 9.26 billion kWh in 1990 to 11.22 billion kWh in 1999, or by 21.17%. At the same time, there was a decrease in electricity consumption in industry and agriculture, while energy consumption by the population and in the communal and household sector grew.
Due to the transition of a significant number of facilities to energy heating and electric cooking, the load on the distribution networks increased. In the existing conditions, a number of government resolutions of the republic defined measures for the construction and reconstruction of overhead lines of 0.4 — 10 kV and transformer substations of 10/0.4 kV at the expense of the local budget. Along with electrical network construction, an important task is to increase electrical capacity. In 1993, the first unit with a capacity of 80 MW of the Shamaldy-Sai Hydropower Plant was commissioned. The construction of the Tash-Kemur Hydropower Plant and the Kambar-Ata Hydropower Plant-2 continues. In 1999, the water level of the Tash-Kemur Hydropower Plant reservoir was raised to 626.5 m, and the working capacity was increased to 435 MW (an increase of 20 MW). The water level of the Shamaldy-Sai Hydropower Plant reservoir was raised to 564.5 m, and the working capacity was increased to 170 MW (an increase of 50 MW).
A promising direction for continuing the construction of hydropower plants and electrical network facilities is attracting foreign investment. The joint-stock company "Kyrgyzenergo" has developed a program for the development of the electric power industry and further utilization of hydropower resources. The construction and restoration of small hydropower plants located on the flows of small rivers in Kyrgyzstan, through attracting private capital both within the republic and from other countries, is of significant importance.
One of the main tasks facing the energy system in 2000 is the restructuring of the joint-stock company "Kyrgyzenergo," according to the program approved by the government resolution of the republic. Currently, it is being carried out in accordance with the laws of the Kyrgyz Republic "On Energy," "On Electric Power Industry," "On Licensing," the Decree of the President of the Kyrgyz Republic dated January 8, 1997 "On Improving the Management System of the Electric Power Industry," and the approved government "Program for the Denationalization and Privatization of Kyrgyzenergo Holding." According to this program, the reform will be conducted in three stages. Currently, the first stage of the reform implementation is underway. Based on "Kyrgyzenergo Holding," the Decree of the President of the Kyrgyz Republic established the joint-stock company "Kyrgyzenergo," which has implemented a corporate governance system. The second stage involves: the creation of new enterprises for the purchase and sale of electricity (commercial type, generating profit, and non-commercial type, not generating profit, and partially funded from the budget) based on enterprises and regional electrical networks; the transfer of thermal power plants and boiler houses to the balance of local self-government with the establishment of joint-stock companies having a controlling stake of shares with local self-government bodies; the creation of joint-stock companies (JSC) for the construction of small hydropower plants; the establishment of scientific and technical centers based on scientific and design institutes while maintaining the sectoral profile. The third stage will largely be determined by the overall economic situation in the republic and should be carried out according to the following scheme: the creation of financially independent joint-stock companies of three types (for electricity generation with a state controlling stake, for the transportation of electricity to the external market, for regional distribution of electricity across the territory of the republic based on current electrical network enterprises) and the establishment of a stock market and dispatch management.
