This was stated by Demir Kabylaev, Senior Analyst at the Centre for Sectoral Analysis within the EDB’s Analytical Department, during a presentation of analytical reports at the bank’s Annual General Meeting and Business Forum, according to a Trend correspondent at the event.
He noted that the EDB had conducted an assessment of the energy transition sector in Central Asia and identified a number of challenges.
“Firstly, the infrastructure is outdated — both generation capacity and the grid — which leads to high losses of up to 20 per cent. Demand for electricity is growing, whilst there is a low level of flexible capacity for integrating renewable energy sources, as well as a relatively low level of cross-border trade. In the context of environmental sustainability, the water-energy nexus is particularly important for the region. Water is a strategic resource in Central Asia and plays a key role in both the energy sector and in irrigation and the provision of drinking water to the population. It is therefore a highly sensitive issue that requires a balanced approach,” said Kabylaev.
He also noted that the lack of diversification in the energy sector remains a risk. According to him, each country in the region relies predominantly on a single dominant source of electricity. This creates certain risks in technological, geopolitical and economic terms.
