The World Bank’s Board of Executive Directors approved the Regional Electricity Market Interconnectivity and Trade (hereinafter: REMIT) programme, a decade-long initiative to establish a regional electricity market in Central Asia and strengthen cross-border power systems. The multi-phase plan aims to expand electricity trade, enhance transmission networks and integrate large-scale renewable energy across the region, addressing rising energy demand and longstanding structural inefficiencies. (Sources: World Bank press release)

Objectives And Scope Of The REMIT Programme

The REMIT programme is designed to create the first regional electricity market across five Central Asian states — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. It aims to shift the region away from primarily national electricity systems toward a more interconnected, competitive market that facilitates cross-border trading and better utilisation of diverse generation resources. Under the initiative, electricity trade — currently accounting for only around 3 % of total demand — could rise significantly through coordinated exchanges and shared infrastructure.

By 2035, the programme seeks to raise annual regional electricity trade to at least 15.000 gigawatt-hours (GWh), expand grid transmission capacity to 16 gigawatts (GW) and enable the integration of up to 9 GW of clean energy capacity sourced from hydropower, solar and wind.

Financing And Implementation Phases

The REMIT programme has indicative financing of approximately 1,018$ billion, to be delivered in three phases. In the first phase, 143,2$ million will be allocated to support Kyrgyzstan, Tajikistan, Uzbekistan and the Central Asian Countries’ Coordinating Dispatch Center (hereinafter: CDC) Energia through grants and concessional financing. Of this, 140$ million is provided by the International Development Association (hereinafter: IDA) of the World Bank and 3,2$ million through the Central Asia Water and Energy Program (hereinafter: CAWEP).

The initial phase focuses on establishing market mechanisms, strengthening grid infrastructure and launching coordination frameworks. Later phases will expand market operations, reinforce digital grid management systems and deepen institutional collaboration across national energy authorities.

Drivers Of Regional Energy Integration

Rising Demand And Complementary Energy Resources

Central Asia’s electricity demand is projected to triple by 2050 due to population growth, industrial expansion and urbanisation, placing pressure on national grids and highlighting the need for secure, affordable power supplies. Despite this growth, electricity trade in the region remains underdeveloped, and variable renewables currently contribute only about 4 % of power generation.

The region’s abundant energy resources — hydropower in Kyrgyzstan and Tajikistan, thermal generation in Kazakhstan, Turkmenistan and Uzbekistan and emerging solar and wind capacity — are highly complementary. REMIT is structured to leverage these strengths through coordinated cross-border trading, enabling surplus capacity to balance demand and support system reliability across seasons and markets.

Enhancing Grid Capacity And Clean Energy Integration

Expanding transmission capacity and digitalising grid operations are central to strengthening the interconnected system. By tripling transmission capacity and introducing advanced grid technologies, the programme aims to reduce outages, enhance resiliency and lower energy costs for consumers and industrial users. In its first phase alone, the initiative is expected to enable about 900 MW of new clean energy capacity, leveraging approximately 700$ million in private investment. Regional integration is also expected to facilitate larger deployments of renewable energy, contributing to climate and sustainability goals by reducing dependence on fossil fuels and improving carbon profiles across national power sectors.

Institutional Framework And Regional Cooperation

Coordination Mechanisms

CDC Energia, mandated to coordinate power exchanges between participating states, will implement the market and institutional activities, while national transmission companies will undertake grid investments. A Regional Steering Committee, comprised of energy ministries and implementing agencies, will oversee programme implementation and ensure alignment with national and regional energy priorities. The programme’s multi-phase structure emphasises both technical and governance improvements, with early focus on capacity building, regulatory reforms and digital grid operations to support long-term market sustainability and transparency.

Economic And Employment Benefits

The World Bank projects that enhanced electricity connectivity and trade could generate up to 15$ billion in economic benefits by 2050, driven by improved reliability, lower costs and stronger energy security. Infrastructure investments are also expected to create construction-related employment and skilled positions tied to market operations — a factor that may contribute to broader socioeconomic development across the region.

Strategic And Policy Implications

Strengthening Regional Energy Security

By advancing a regional electricity market, Central Asian nations seek to reduce vulnerabilities associated with isolated energy systems and seasonal demand fluctuations. Cross-border trade allows surplus generation to stabilise supplies where deficits occur, enhancing resilience against outages and price volatility. Greater integration also positions Central Asia as a more cohesive regional player in the broader Eurasian energy landscape, potentially opening avenues for cooperation with external partners and broader energy export opportunities.

Long-Term Renewable Energy Development

The REMIT programme aligns with wider global transitions towards renewable energy and sustainable infrastructure. By facilitating large-scale renewable integration and attracting private investment, the initiative supports the region’s contributions to climate commitments and energy diversification. Strengthened regional institutions and market frameworks are expected to enhance policy coordination and regulatory harmonisation, enabling Central Asian states to better coordinate national energy strategies and navigate external economic and geopolitical shifts.

Outlook: The Future Of Central Asia’s Regional Electricity Market

Over the next decade, the REMIT programme is likely to shape Central Asia’s energy landscape through three key trajectories:

  • Market Operationalisation: Establishing functional electricity trading platforms and institutional mechanisms to support sustainable regional energy commerce.
  • Infrastructure Expansion: Scaling up transmission capacity, digital grid tools and cross-border interconnections to improve reliability and affordability.
  • Clean Energy Transformation: Integrating renewable energy into national grids, reducing emissions and supporting private sector engagement.

As implementation advances, monitoring the pace of grid upgrades, regulatory reforms and private investment flows will offer insights into the market’s resilience and long-term viability. With World Bank backing, Central Asia’s regional electricity market could become a cornerstone of the region’s energy security and economic integration in the decades ahead.

These measures also constitute a continuation of recent developments of economic upheaval with increasing political stability. Among the factors that led to the expansion of the C6 Corridor or expansive partnerships with Japan and the United States of America is the reduced interference of Russia and China. However, Central Asian nations must be cautious not to simply exchange foreign influence. Therefore, developmental measures through international bodies, like the World Bank, are more positive for the long-term development of the Turkic region.