EAEU: Cheap RES Do Not Guarantee Low Final Energy Costs and System Stability

Елена Краснова Economy
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Today, during the online presentation of the analytical report "Energy of Central Asia: Modernization and Energy Transition," Arman Akhunbaev, head of the Sectoral Analysis Center of the Eurasian Development Bank, noted that "cheap renewable energy sources (RES) cannot guarantee low end-user costs and the stability of the energy system."

According to him, the modern world no longer questions the feasibility of building RES. The cost of solar power plants has fallen by 70% since 2015, and wind power plants by 55%. It is now important to understand how to integrate these sources into the energy system so that it remains reliable, economical, and efficient. At the same time, the authors of the report emphasize that in recent years, the growth in energy demand has outpaced the deployment of RES.

"The key issue is the availability of sufficient systemic capacity to meet new demand without restrictions and shortages. Central Asia is also subject to this global trend of rising consumption, despite existing capacity constraints. It is important not only to introduce new RES capacities but also to develop networks, reserves, energy storage, and interstate cooperation. Without this, even inexpensive generation sources can create risks," added Akhunbaev.

According to the Eurasian Development Bank, Central Asia is preparing for significant transformation: outdated management methods can no longer cope with modern challenges. It is projected that by 2030, electricity consumption in the region will increase by 40%, while 70% of the infrastructure is already worn out.
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