WASHINGTON, January 22, 2026—In a significant move towards enhancing energy connectivity in Central Asia, the World Bank’s Board of Executive Directors has given the green light to the Regional Electricity Market Interconnectivity and Trade (REMIT) Program. This ambitious program, set to unfold over a decade through three distinct phases, aims to debut the region’s first-ever electricity market, bolster electricity trade, expand transmission capabilities, and facilitate the integration of renewable energy on a larger scale.
The initial phase of the REMIT Program will see the Kyrgyz Republic, Tajikistan, Uzbekistan, and the Central Asian Countries’ Coordinating Dispatch Center (CDC) Energia benefiting from a total of $143.2 million in grants and concessional funding. This includes $140 million from the World Bank’s International Development Association (IDA) and an additional $3.2 million from the Central Asia Water and Energy Program (CAWEP).
The demand for electricity in Central Asia is surging and is expected to triple by 2050 if current trends continue. Economic growth, coupled with rising populations, expanding industries, and urban development, underscores the urgent requirement for energy that is both affordable and dependable.
Despite the potential to improve energy security and cost-effectiveness, electricity trade within Central Asia remains minimal, accounting for just 3 percent of the region’s electricity demand. Similarly, renewable energy sources contribute a mere 4 percent to the power mix, even though Central Asia is rich in clean energy resources that are currently underutilized.
REMIT is designed to capitalize on the diverse energy assets of the region, such as hydropower in the Kyrgyz Republic and Tajikistan, thermal power in Kazakhstan, Turkmenistan, and Uzbekistan, along with the burgeoning prospects for solar and wind energy across all Central Asian nations.
Over the next ten years, the REMIT initiative aims to scale up electricity trade to at least 15,000 GWh annually, sufficient to supply millions across Central Asia. It will also more than triple transmission capacity to 16 GW and support up to 9 GW from clean energy sources. By fostering regional integration, the program is expected to balance the power system, decrease outages, and reduce energy costs for consumers and businesses alike.
“The REMIT Program supports Central Asian countries’ ambition to deepen energy cooperation and create a regional electricity market. This will enable more efficient use of energy resources, including cross-border deployment of clean energy, improve access to, reliability, and affordability of electricity for people and businesses, and support jobs,” stated Najy Benhassine, World Bank Regional Director for Central Asia. “By 2050, stronger electricity connectivity and trade could generate up to $15 billion in economic benefits for the region.”
The REMIT Program is backed by an indicative total funding of $1.018 billion across its three phases. This funding will be directed towards developing and operationalizing a regional energy market, boosting transmission capacity, implementing digital systems for improved grid reliability, and enhancing regional institutions and coordination. These investments are also expected to generate construction-related jobs and skilled roles required to manage the regional electricity market.
“The launch of the Central Asian regional electricity market, underpinned by a strengthened grid, will advance energy security, support large-scale renewable integration, and unlock private investment. The first phase alone is expected to enable about 900 MW of new clean energy capacity, leveraging $700 million in private investments. This will pave the way for a more resilient and interconnected power system across this dynamic region,” remarked Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia.
Subsequent phases of the program will build upon the established foundation by expanding the market platform, enhancing and digitizing regional transmission networks, and reinforcing regional institutions. CDC Energia will oversee the coordination of power exchanges, while national transmission companies will handle grid-related investments. A Regional Steering Committee, consisting of energy ministries and implementing agencies, will manage the overall program execution.
CAWEP is a multi-donor trust fund managed by the World Bank in partnership with the European Union, Switzerland, and the United Kingdom. Its mission is to strengthen regional cooperation on water and energy security in Central Asia.
Original Story at www.worldbank.org