Fergana Agency: The planet Bank invests in an integrated energy marketplace in Central Asia

The Board of Executive Directors of the planet Bank approved a programme to integrate the electricity marketplace and the electricity network in Central Asia (REMIT), which is expected to bring around $1 billion to the countries of the region over the next 10 years. This information was published in a press release on the bank's website.

The programme aims to make the first integrated electricity marketplace in Central Asia, make regional trade, increase transmission capacity and make foundations for large-scale integration of energy sources into national networks.

The task was divided into 3 stages. As part of the first stage, Kyrgyzstan, Tajikistan, Uzbekistan and the Energy Coordination and Disposal Centre for the countries of the region will receive grants and preferential backing worth a full of $143.2 million. Most of the funds will be channelled through the global Association for the improvement of the planet Bank, and an additional $3.2 million will come from the Central Asia Water and Energy Programme, a fund managed by the planet Bank in cooperation with the European Union, Switzerland and the United Kingdom.

According to the bank's press release, the request for electricity in Central Asia is expanding and could triple by 2050. Despite the advanced possible for improving energy security, trade in energy in the region remains limited and covers only 3% of full demand. In addition, renewable energy sources account for only about 4% of full production.

The REMIT programme aims to usage complementary resources: water energy in Kyrgyzstan and Tajikistan, thermal power plants in Kazakhstan, Turkmenistan and Uzbekistan, as well as the possible of solar and wind energy throughout the region. Over the next decade, electricity trade is estimated to increase to 15,000 GWh per year to meet the needs of millions.

Experts foretell that the first phase of the program will enable the integration of around 900 MW of fresh power into the network, while mobilising around $700 million of private investment.

The full backing of REMIT is estimated at USD 1,018 billion. These investments will besides contribute to creating fresh jobs in the energy infrastructure sector and highly skilled energy marketplace management professionals.

As Naji Benhasin, manager of the planet Bank in Central Asia, emphasized, close energy integration and the improvement of electricity trade can bring up to $15 billion of economical benefits to the region by 2050.

Source: Fergana Agency

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