In the first phase of implementation, the initiative will receive funding of $143.2 million for Kyrgyzstan, Tajikistan, Uzbekistan, and the Energy Coordination Dispatch Center. Of this amount, $140 million will be allocated by the International Development Association (IDA), while $3.2 million will come as grants from the CAWEP program.
The program aims to optimize the use of regional resources, including hydropower from Kyrgyzstan and Tajikistan, thermal generation from Kazakhstan, Turkmenistan, and Uzbekistan, as well as the growing potential of solar and wind energy.
According to World Bank forecasts, the REMIT will be able to increase electricity trade volumes to 15,000 gigawatt-hours per year, improve the transmission capacity of power lines to 16 gigawatts, and integrate up to 9 gigawatts of clean energy. These changes will enhance the stability of energy systems, reduce the likelihood of outages, and lower electricity costs for households and businesses.
Naji Benhassin, the World Bank's regional director for Central Asia, noted that the development of this electricity market will improve supply reliability, enhance resource utilization, and bring economic benefits of up to $15 billion by 2050.
The total budget for the program amounts to $1.018 billion, which will be directed towards the establishment and launch of the market, modernization of power grids, digitalization of energy systems, and strengthening regional institutions.
As part of the first phase, the integration of about 900 megawatts of clean capacity is planned, along with attracting around $700 million in private investment, added Charles Cormier, director of infrastructure for the Europe and Central Asia region.
The market and institutional measures will be overseen by the Energy Coordination Dispatch Center. Infrastructure investments will be made by national power grid operators, while strategic oversight will be taken on by the regional REMIT management committee, which will include the energy ministries of Central Asian countries.
