As part of the initial phase of the project, Kyrgyzstan, Tajikistan, Uzbekistan, and the Energy Coordination Dispatch Center will receive funding of $143.2 million. Of this amount, $140 million will come from the International Development Association (IDA), while the remaining $3.2 million will be provided as grants from the CAWEP program.
The program envisions the use of complementary resources from the region's countries: hydropower from Kyrgyzstan and Tajikistan, thermal generation from Kazakhstan, Turkmenistan, and Uzbekistan, as well as the developing potential of solar and wind energy.
According to the World Bank's forecasts, the implementation of REMIT will increase the volume of electricity trade to 15,000 gigawatt-hours per year, expand the capacity of power transmission lines to 16 gigawatts, and integrate up to 9 gigawatts of clean energy. This will significantly enhance the resilience of energy systems, reduce the risk of outages, and make electricity more accessible for both the population and businesses.
Naji Benhassin, the World Bank's regional director for Central Asia, emphasized that the establishment of a regional electricity market will increase the reliability of supply and enable more efficient use of resources, potentially leading to economic benefits of up to $15 billion by 2050.
The preliminary cost of the program is $1.018 billion, and funds will be directed towards the creation and launch of the market, modernization of power grids, digitalization of energy systems, and strengthening regional institutions.
In the first phase, the integration of approximately 900 megawatts of clean capacity and the attraction of around $700 million in private investments are also expected, noted Charles Cormier, director of infrastructure for the Europe and Central Asia region.
The Energy Coordination Dispatch Center will perform functions related to market and institutional measures. Infrastructure investments will be carried out by national power grid operators, while strategic oversight will be provided by the regional REMIT management committee, which will include the ministries of energy from Central Asian countries.
