In the first phase of the project, Kyrgyzstan, Tajikistan, Uzbekistan, and the Energy Coordination Dispatch Center will receive financial support in the form of grants and concessional loans totaling $143.2 million. Of this amount, $140 million will be allocated by the International Development Association (IDA), while the remaining $3.2 million will be provided as grants from the CAWEP program.
The plan includes the effective use of complementary resources from the countries in the region, such as the hydropower of Kyrgyzstan and Tajikistan, thermal generation from Kazakhstan, Turkmenistan, and Uzbekistan, as well as the growing potential of solar and wind energy.
According to the World Bank, the implementation of REMIT will increase electricity trade volume to 15,000 gigawatt-hours per year, expand the capacity of power grids to 16 gigawatts, and integrate up to 9 gigawatts of clean energy. This will lead to increased resilience of energy systems, reduced likelihood of outages, and lower electricity costs for households and businesses.
Naji Benhassin, the World Bank's regional director for Central Asia, noted that the creation of a regional electricity market will contribute to supply reliability, more efficient resource use, and could provide economic benefits of up to $15 billion by 2050.
The total budget for the program is $1.018 billion. These funds will be directed towards the development and launch of the market, modernization of electrical networks, digitalization of energy systems, and strengthening regional institutions.
In the first phase, it is planned to integrate about 900 megawatts of clean capacity and attract approximately $700 million in private investments, added Charles Cormier, director of infrastructure for the Europe and Central Asia region.
The Energy Coordination Dispatch Center will play a key role in implementing market and institutional measures. Infrastructure investments will be carried out by national electricity grid operators, while strategic oversight will be provided by the regional REMIT management committee, which will include the energy ministries of Central Asian countries.
