EBRD Commits €14 Million To Enhance Electricity Supply In Kyrgyz Republic

The European Bank for Reconstruction and Development (EBRD) has announced a new financial package of up to €14 million to improve the efficiency of electricity supply in the Kyrgyz Republic. This investment will be on-lent to the National Electric Grid of the Kyrgyz Republic, the majority state-owned electricity transmission and distribution company.

The financing programme is supported by the government of Japan through the Japan-EBRD Cooperation Fund and includes several key components:

• Rechnaya Substation Modernization: The EBRD will provide a sovereign loan of up to €4.84 million and an investment grant of up to €2.75 million for upgrading the voltage of the Rechnaya substation from 35kV to 110kV in the Osh region. This project aims to increase the reliability of energy supply, improve substation efficiency, reduce power losses, and cut annual CO2 emissions by at least 5,300 tonnes.
• Dolinka Substation Reconstruction: Another sovereign loan of up to €4.16 million, coupled with an investment grant of €2.25 million, will be allocated for reconstructing a 110 kV switchgear, installing new transformers, and replacing associated equipment at the Dolinka substation in the Issyk-Kul region. This initiative will strengthen the local grid to integrate renewable energy sources, reduce annual CO2 emissions by at least 5,800 tonnes, and enhance overall substation efficiency.

In addition to these projects, the EBRD has signed a memorandum of understanding with the Ministry of Energy of the Kyrgyz Republic to support the modernization and expansion of the national power grid. This agreement paves the way for the development of a €100 million project to finance the construction of a 500 kV transmission line between the towns of Kemin and Balykchy, and a 500 kV substation in Balykchy. The investment is expected to enable the integration of up to 1GW of renewable energy sources into the grid.

To date, the EBRD has invested €984 million in the Kyrgyz Republic through 244 projects, primarily focusing on supporting private entrepreneurship. The new funding will further enhance the country’s electricity infrastructure, promoting sustainable development and energy efficiency.

This substantial investment reflects the EBRD’s commitment to bolstering the Kyrgyz Republic’s power grid, improving energy reliability, and supporting the integration of renewable energy sources, contributing to the country’s long-term economic and environmental goals.