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Powering the transition : rebuilding Central Asia's electricity grids for regional resilience
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Introduction: Why the Grid Matters in Central Asias Energy Transition As countries race to decarbonize their energy systems, global attention is turning to the infrastructure that un­derpins clean energy expansion: electricity grids. Trans­mission and distribution networks are central to energy security, affordability, and climate action. The Interna­tional Energy Agency(IEA) warns that without a rapid scale-up of grid investments doubling to over USD 600 billion annually by 2030, countries will miss their climate goals. 1 In the IEAsGrid Delay scenario, outdated and underbuilt networks become a bottleneck, forcing sys­tems to rely more heavily on coal and gas, more than doubling global carbon emissions relative to transi­tion-aligned pathways. 2 As such, grids could be either ­active enablers or constraints on the path to net-zero. This warning is highly relevant for Central Asia. Home to over 80 million people and projected to surpass 100 mil ­lion by 2050, 3 the region faces a complex electricity tri­lemma: how to expand and decarbonize supply, main­tain affordability, and ensure grid reliability amid aging infrastructure and rising demand. The 2022 large-scale power outage 4 across Kazakhstan, Kyrgyzstan, and Uz­bekistan exposed the fragility of existing transmission systems. Grid bottlenecks hinder the deployment of re­newables and weaken incentives for private investment. Yet, for Central Asia, the challenge is not just integrating wind and solar, but also rebuilding a legacy system that is crucial for the countries energy security and position­ing the region within emerging inter-regional energy trade corridors. Despite different resource endowments and reform pathways, the regions countries face common con ­straints, albeit to varying degrees: electricity grids that are underfunded, under-digitized, and overstretched . While reform efforts and investment attraction are ongo­ing, they risk lagging behind without simultaneous up­grades in infrastructure, digitalization, and operational capacity. Moreover, Central Asias power sectors differ substantially in their grid topologies, governance models, and reform readiness. Public ownership remains domi­nant, making rapid liberalization models impractical. ­Instead, locally owned and gradual reforms that are re­sponsive to domestic realities could generate greater ­local buy-in. Beyond their technical function, grids are also geopolitical. They reflect not only domestic policies but also shifting ­international alignments. For Central Asia, strategic grid development can both strengthen internal resilience and enable credible cross-border trade. Although the region is unlikely to pursue fully integratedgrid communities, 5 tar­geted interoperable linkages could still deliver economic, security, and foreign policy benefits, if coupled with robust domestic systems. This policy paper adopts a system-level perspective, argu­ing that one must understand electricity infrastructure, governance, and market arrangements as an integrated whole. The core argument is not for wholesale or accelerat­ed market liberalization, but for pragmatic, country-specific reforms that improve system resilience and interoperability. In this light, infrastructure modernization should go in par­allel with enhancements to regulatory capacity. For international partners, and particularly the EU, this pre­sents both a strategic challenge and an opportunity. On the one hand, geoeconomics competition in Central Asia is in­tense, while the EU remains geographically and politically distant. On the other hand, the EU has consistently sup­ported regional cooperation and invested in both country-­level and regional energy infrastructure. The sustainability of existing and future investments and the EU-Central Asia connectivity depends on the stability of grid infrastructure. The momentum is ripe for strengthening this engagement: Central Asian heads of state are signaling political will for deeper cooperation, and governments are actively ­diversifying foreign partnerships. 1  International Energy Agency. Electricity Grids and Secure Energy Transitions. 2023. https://iea.blob.core.windows.net/assets/ea2ff609-8180-4312-8de9-494bcf21696d/­Electri cityGridsandSecureEnergyTransitions.pdf. Accessed July 21, 2025. 2 Ibid. 3  Makhanov, Kanat.UN Population Prospects: Case of Central Asia. Eurasian Research Institute, n.d. https://www.eurasian-research.org/publication/un-population-pros­pects-case-of-central-asia/#:~:text=By %202050 %2C %20the %20population %20of,benchmark %20of %20100 %20million %20people. Accessed July 21, 2025. 4 Reuters . Power Blackout Hits Kazakhstan, Kyrgyzstan, and Uzbekistan. Reuters, January 25, 2022. https://www.reuters.com/world/asia-pacific/power-blackout-hits-­kazakhstan-kyrgyzstan-uzbekistan-2022-01-25/. Accessed July 21, 2025. 5  In Pepe, Jacopo Maria.Europe and the Emerging Geopolitics of Electricity Grids. Friedrich Ebert Stiftung, 2024. https://library.fes.de/pdf-files/bueros/bruessel/21205.pdf. Accessed July 21, 2025,Grid community is defined as a synchronised electricity network, where both voltage and frequency work in unison so that all states share the same risks, chances, duties, and rights 4 Friedrich-Ebert-Stiftung e.V.