The World Bank’s Board of Executive Directors has approved the Regional Electricity Market Interconnectivity and Trade (REMIT) Program, a 10-year initiative designed to enhance energy connectivity across Central Asia. The program will establish the region’s first-ever regional electricity market, expand electricity trade, increase transmission capacity, and create a foundation for integrating large-scale renewable energy.
In the first phase, the Kyrgyz Republic, Tajikistan, Uzbekistan, and the Central Asian Countries’ Coordinating Dispatch Center (CDC) Energia will receive grants and concessional financing totaling $143.2 million. This includes $140 million from the World Bank’s International Development Association (IDA) and $3.2 million from the Central Asia Water and Energy Program (CAWEP) to support initial program activities.
Electricity demand in Central Asia is growing rapidly and is expected to triple by 2050 due to population growth, industrial expansion, and urbanization. Despite the region’s potential for energy security and affordability, electricity trade currently accounts for only about 3 percent of total demand, while variable renewables contribute just 4 percent of generation. The region’s abundant clean energy resources, including hydropower, solar, and wind, remain largely underutilized.
The REMIT Program aims to optimize the region’s complementary energy resources: hydropower in the Kyrgyz Republic and Tajikistan, thermal power in Kazakhstan, Turkmenistan, and Uzbekistan, and the expanding solar and wind potential across all countries. Over the next decade, the program seeks to increase electricity trade to at least 15,000 GWh annually, more than triple transmission capacity to 16 GW, and enable up to 9 GW of clean energy resources. This strengthened regional integration will improve system reliability, reduce outages, and lower energy costs for households and businesses.
Najy Benhassine, World Bank Regional Director for Central Asia, highlighted that the program supports deeper regional energy cooperation, promotes efficient use of energy resources, facilitates cross-border clean energy deployment, and could generate up to $15 billion in economic benefits by 2050.
The REMIT Program has indicative financing of $1.018 billion across three phases, which will support the design and operation of the regional energy market, strengthen transmission infrastructure, introduce digital systems for grid reliability, and enhance regional institutions and coordination. Program investments will also create construction jobs and skilled positions to operate the new electricity market.
Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia, noted that the program’s first phase is expected to enable around 900 MW of new clean energy capacity, leveraging $700 million in private investments. Future phases will expand the market platform, reinforce and digitalize transmission networks, and strengthen regional institutions. CDC Energia will implement the market and institutional activities, while national transmission companies will carry out grid upgrades, all overseen by a Regional Steering Committee comprising energy ministries and implementing agencies.
