losses reaching 11 % in 2023. 24 In Tajikistan, distribution losses accounted for 21.6 % in 2024, compared to 3.31 % in the high-voltage network. 25 Commercial losses, including theft and tampering, also remain widespread. To deter tampering, Uzbekistan criminalized electricity theft in 2023, 26 and Tajikistan followed suit in 2025. 27 Metering modernization is uneven across the region. Ka­zakhstan’s KEGOC has achieved 100 % Automated System for Commercial Electricity Metering(ASKUE) coverage across all 1150 kV, 500 kV, 220 kV, and 35 kV substations. However, more than half of metering points managed by electricity market subjects, including 59,1 % of those man ­aged by regional electricity companies, were not equipped with ASKUE as of 2023. 28 Uzbekistan has made significant progress in deploying smart meters, but 28 % of wholesale consumers remained unconnected to ASKUE in 2023. 29 In Kyrgyzstan, with donor support, a national rollout of smart meters is underway, but ASKUE coverage stood at only 29 %. 30 In Tajikistan, while no official figures were available on ASKUE coverage, the government is expanding smart metering in urban centers and integrating automated bill­ing systems with donor support. Lack of universal access to automated metering infrastructure, which are crucial for smart grids, limits the ability of utilities to conduct real-­time monitoring, forecasting, and control. As countries expand metering and integrate higher shares of renewables, grid resilience to both cyber and physical threats becomes critical . Renewable energy generation and storage facilities are typically managed through Su­pervisory Control and Data Acquisition(SCADA) systems, which are vulnerable to cyber intrusion. 31 Weakly protect­ed systems could be exploited to disrupt operations or cause equipment damage. 32 Grid modernization must therefore be coupled with secure digital infrastructure, robust cybersecurity protocols, and coordinated inci ­dent-response planning. Without these measures, invest­ments in grid upgrades may increase exposure to cyberat­tacks, especially in a region where cross-border flows are expected to grow. Across Central Asia, infrastructure degradation, uneven me­tering, and limited cybersecurity readiness are common constraints. Without urgent progress in these areas, coun­tries risk domestic supply disruptions and missed opportu­nities for scalable regional power trade. Electricity Market Governance and Reform Reform progress across Central Asia remains uneven, shaped by divergent institutional legacies and levels of pri­vate sector participation(see Table 1). Kazakhstan leads in market liberalization, while Kyrgyzstan and Tajikistan re­tain highly centralized, hydro-dependent power sectors. Uzbekistan occupies a middle ground, undertaking ambi­tious reforms but facing implementation risks. Across the region, tariff reform, grid modernization, and renewable in­tegration remain cross-cutting challenges, with regulatory capacity and pricing frameworks acting as major bottle­necks. While generation assets are diversified in ownership, grid infrastructure, particularly transmission networks, re­mains under public control, reflecting the critical role of the public sector in electricity infrastructure. Kazakhstan Kazakhstan’s electricity sector is unbundled and governed through a hybrid model combining market mechanisms with centralized oversight. Generation is largely privatized, though state-owned Samruk-Energo retains major assets. Another SOE, KEGOC, oversees transmission, dispatch, and cross-border flows. Distribution is carried out by licensed regional electricity companies(RECs), both public and pri­vate. The 2023 reform 33 introduced a centralized Single Buyer model, operated by the Financial Settlement Center, and a balancing market, 34 moving away from a purely bi­lateral contracts-based system. These reforms have im­proved dispatch reliability. Tariff reform aimed at cost re ­covery is underway, however, its pace is gradual, given the sensitivity of price increases. Less than half of whole­24  K-News.“In Kyrgyzstan in 2023 Electricity Losses Amounted to More Than 11 %.” K-News, January 16, 2024. https://knews.kg/2024/01/16/v-kyrgyzstane-v-2023-godu-po­teri-elektroenergii-sostavili-bolee-11/. Accessed July 24, 2025. 25  Asia-Plus.“Head of Tajikistan’s Ministry of Energy Expressed Dissatisfaction with How Distribution of Electricity Works.” Asia-Plus, July 15, 2025. https://asiaplustj.info/ru/ news/tajikistan/economic/20250715/glava-minenergo-tadzhikistana-virazil-nedovolstvo-rabotoi-po-raspredeleniyu-elektroenergii. Accessed July 27, 2025. 26  Republic of Uzbekistan. Law of the Republic of Uzbekistan on Introducing Amendments and Additions to the Criminal Code, Criminal Procedure Code, and Administrative Re­sponsibility Code in Connection with Strengthening Liability for the Illegal Use of Energy Resources , No. 822, March 13, 2023. https://lex.uz/docs/6405976. Accessed July 27, 2025. 27  Asia-Plus.“Emomali Rahmon Signs Law Establishing Criminal Liability for Unlawful Manipulations with Electricity Meters.” Asia-Plus, April 15, 2025. https://asiaplustj. info/ru/node/347849. Accessed July 25, 2025. 28 KEGOC . “Analysis of Wholesale Market,” p. 50. 29  Gazeta.uz.“Over 100,000 Wholesale Consumers and 648,000 New Subscribers in Uzbekistan Are Not Connected to ASKUE.”[In Russian]. Gazeta.uz, November 7, 2023. https://www.gazeta.uz/ru/2023/11/07/askue/. Accessed July 22, 2025. 30  Kaktus Media.“Smart Meters: Fight Against Electricity Theft and Customer Complaints.”[In Russian]. Kaktus Media, March 27, 2025. https://kaktus.media/doc/520342_ ymnye_schetchiki:_borba_s_vorovstvom_elektroenergii_i_jaloby_abonentov Accessed July 21, 2025. 31  O’Sullivan, Meghan, Indra Overland, and David Sandalow . The Geopolitics of Renewable Energy. Center on Global Energy Policy and the Geopolitics of Energy Project. Working Pa­per, 2017. https://www.belfercenter.org/sites/default/files/pantheon_files/files/publication/Geopolitics %20Renewables %20- %20final %20report %206.26.17.pdf. Accessed July 21, 2025. 32 Ibid. 33  Republic of Kazakhstan. The Order of the Minister of Energy of Kazakhstan on Determining the Single Buyer of Electric Energy, No. 212, June 6, 2023. https://online.zakon. kz/Document/?doc_id=37232863. Accessed July 22, 2025. 34  Republic of Kazakhstan. On Amending the Order of the Minister of Energy of the Republic of Kazakhstan of February 20, 2015, No. 112‘On the Approval of the Rules for the Functioning of the Balancing Electricity Market.’, No. 250, June 30, 2023. https://adilet.zan.kz/rus/docs/V2300032973#z8. Accessed July 27, 2025. 8 Friedrich-Ebert-Stiftung e.V.