The Ministry of Energy proposes to allow settlements with investors in foreign currency to attract investments in the energy sector
In the Kyrgyz Republic, there is a trend of increasing electricity production, however, the growth rate of consumption significantly outpaces it. This information was presented by Deputy Minister of Energy Altynbek Rysbekov at a meeting of the committee of the Jogorku Kenesh, which deals with issues of industrial policy, transport, and the energy complex.
According to him, as of today, approximately 14.5 billion kilowatt-hours of electricity are produced in the country, while the demand from the population and the economy is nearly reaching 20 billion kWh. Thus, the electricity deficit amounts to between 3.3 and 4 billion kWh. In 2025, Kyrgyzstan will be forced to purchase 4.5 billion kWh of electricity from countries such as Turkmenistan, Uzbekistan, Kazakhstan, and Russia.
Despite the constant increase in production, the demand for electricity is growing even faster, which is related to the increase in population, economic development, and the construction of new facilities.
In light of the current situation, the Ministry of Energy has submitted a draft law to the Jogorku Kenesh, which proposes allowing settlements in foreign currency for the implementation of investment projects and public-private partnership projects in the energy sector.
The current tariffs at which the state purchases electricity from investors engaged in the construction of renewable energy facilities are set by the Cabinet of Ministers in local currency and do not depend on fluctuations in foreign currency exchange rates. The only exceptions are contracts for the export and import of electricity.
According to the proposed draft law, investors will be given the opportunity to set prices in foreign currency, which, according to the Ministry of Energy, should help attract foreign investments.
Additionally, at the meeting, local investors also expressed a request for similar conditions to be provided to them as those given to foreign companies.
It should be noted that currently, the state purchases electricity from investors at a rate of 4.2 soms per kilowatt-hour. According to the draft law plan, this rate will be in effect for 15 years, after which it will be subject to revision.
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