The World Bank’s Board of Executive Directors has approved the Regional Electricity Market Interconnectivity and Trade (REMIT) Program, a major initiative aimed at enhancing energy connectivity across Central Asia. Designed as a 10-year program to be implemented in three phases, REMIT seeks to establish Central Asia’s first-ever regional electricity market, increase cross-border electricity trade, expand transmission capacity, and create the foundation for large-scale integration of renewable energy.
During the first phase of the REMIT Program, the Kyrgyz Republic, Tajikistan, and Uzbekistan, together with the Central Asian Countries’ Coordinating Dispatch Center (CDC) Energia, will receive program grants and concessional financing totaling $143.2 million. This includes $140 million from the World Bank’s International Development Association (IDA) and $3.2 million in grants from the Central Asia Water and Energy Program (CAWEP). These resources will support the countries’ initial activities to strengthen electricity trade, improve grid operations, and prepare for a regional electricity market.
Electricity demand in Central Asia is growing rapidly and is projected to triple by 2050 under a business-as-usual scenario. Economic growth, population increases, urban expansion, and industrial development are driving a rising need for reliable, affordable, and sustainable energy. Despite its potential, electricity trade in the region remains limited, accounting for only about 3 percent of total electricity demand. Similarly, variable renewable energy sources currently contribute just 4 percent of power generation, even though Central Asia has abundant and complementary clean energy resources that remain underutilized.
The REMIT Program is designed to leverage the region’s complementary energy assets. Hydropower resources in the Kyrgyz Republic and Tajikistan, thermal power in Kazakhstan, Turkmenistan, and Uzbekistan, and the growing potential of solar and wind energy across the region will be integrated to maximize efficiency and sustainability.
Over the next decade, the program aims to increase annual electricity trade to at least 15,000 GWh, sufficient to meet the needs of millions of people across Central Asia. Transmission capacity is expected to more than triple to 16 GW, while up to 9 GW of clean energy resources will be enabled. Greater regional integration will contribute to a more resilient and balanced power system, reduce outages, and lower energy costs for households and businesses.
“The REMIT Program supports Central Asian countries’ ambition to deepen energy cooperation and create a regional electricity market,” said Najy Benhassine, World Bank Regional Director for Central Asia. “This initiative will allow for more efficient use of energy resources, including cross-border deployment of clean energy, and improve access to, reliability, and affordability of electricity for people and businesses, while supporting job creation. By 2050, stronger electricity connectivity and trade could generate up to $15 billion in economic benefits for the region.”
The program has total indicative financing of $1.018 billion across its three phases. These funds will support the design and operationalization of a regional energy market, strengthen transmission capacity, introduce digital systems to improve grid reliability, and enhance regional institutions and coordination. Investments under REMIT are also expected to create both construction-related jobs and highly skilled positions for operating the regional electricity market.
Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia, noted, “The launch of the Central Asian regional electricity market, supported by a strengthened grid, will advance energy security, enable large-scale renewable energy integration, and unlock private investment. The first phase alone is expected to support approximately 900 MW of new clean energy capacity, leveraging $700 million in private investment. This will lay the foundation for a more resilient and interconnected power system across the region.”
Future phases of the REMIT Program will build on this foundation by expanding the market platform, further reinforcing and digitalizing regional transmission networks, and strengthening regional institutions. CDC Energia, responsible for coordinating power exchanges among Central Asian countries, will implement market and institutional activities, while national transmission companies will carry out grid infrastructure investments. Oversight of overall program implementation will be provided by a Regional Steering Committee, which includes energy ministries and implementing agencies from the participating countries.
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