A few days ago, the UAE energy giant Masdar and the Kyrgyz Ministry of Energy signed a 1GW renewable energy project development agreement.
The signing of the agreement signifies Masdar's re-distribution in the field of renewable energy in Central Asia after successfully entering the renewable energy market in Uzbekistan and becoming a major player locally.
The 1GW renewable energy projects under the framework agreement include land-based photovoltaics, surface photovoltaics and hydropower plants.
The agreement was signed to help Kyrgyzstan achieve its low-carbon emission reduction goals – a 44% reduction in greenhouse gas emissions by 2030 and carbon neutrality by 2050.
However, judging from the current installed power structure of Kyrgyzstan, the proportion of clean energy power has reached more than 90%.
So, why is the Kyrgyz government committed to developing new renewable energy projects?
The power station is seriously aging
Thanks to its rich hydropower resources, Uzbekistan's installed electricity capacity is dominated by hydropower, accounting for more than 90%. However, these hydropower stations are facing serious aging problems. Due to the extremely low electricity price level, the power system has been facing greater financial pressure, and the increasing maintenance costs of power stations have further increased the government's financial burden.
Electricity supply gap
Kyrgyzstan's current power supply can barely meet domestic demand, and the power supply shortage it may face mainly comes from the following aspects:
(1) New power demand: Electricity consumption in Kyrgyzstan increases by 3%-5% per year, but equipment is aging and overloaded, and due to lack of funds, new power generation capacity is limited, which cannot meet the increasing power demand.
(2) Seasonal power shortage: hydropower is susceptible to seasonal and weather-related fluctuations, and there is a power shortage in Jiji winter;
(2) Regional power shortage: Kyrgyzstan's electricity demand mainly comes from the north, while 80% of the hydropower stations are mainly distributed in the south. Coupled with Kyrgyzstan's aging power transmission facilities, the stability of power supply is threatened.
(3) Electricity heating: Electric boilers are the main heat source in some areas of Kyrgyzstan, which greatly increases the demand for electricity consumption.
(4) Electricity export: Kyrgyzstan’s domestic power grid is connected with Kazakhstan, Uzbekistan and China. According to bilateral agreements between the two countries, Kyrgyzstan imports part of electricity from Uzbekistan and Kazakhstan and exports part of electricity to Kazakhstan and China every year. However, with the aging of active hydropower stations and the growth of domestic electricity demand, Kyrgyzstan's electricity exports will face shortages.
Electricity export is one of Kyrgyzstan’s sources of foreign exchange income. In order to promote grid interconnection and electricity export with neighboring countries, Kyrgyzstan has planned the CASA-1000 (Central Asia-South Asia Power Transmission and Transformation Line) project with Tajikistan, Afghanistan and Pakistan. The project was launched in 2012. It was proposed in 2019 that the construction will start in 2019 and is currently under construction. After the project is completed, Jike will export electricity to Afghanistan and Pakistan.
Renewable energy development potential
Kyrgyzstan's existing power structure is relatively simple. In order to enhance the security and stability of power supply, the Kyrgyz government hopes to promote the diversification of the power structure. In the global low-carbon emission reduction trend, combined with Kyrgyzstan's own resource endowment, renewable energy has become an important transformation direction.
Ji's renewable energy power development potential mainly exists in hydropower and photovoltaics:
(1) Water resources: There are many rivers and lakes in Kyrgyzstan, and the water resources are extremely rich. The total reserves are about 142.5 billion kWh, and only 10% of them have been developed. The Kyrgyz government encourages further development of small hydropower.
(2) Solar energy: Ji's geographical location and climatic conditions are very favorable for the development of solar energy, and the annual power generation is expected to reach 300 kilowatt-hours (kWh/m2).
At present, Ji has no photovoltaic installed capacity. Witnessed by the Prime Minister of Kyrgyzstan in November last year, China Railway 20th Bureau and the Ministry of Economy and Commerce of Kyrgyzstan signed a memorandum of understanding for the Issyk Kul 1000 MW photovoltaic project and the Torguz 600 MW hydropower station project. The photovoltaic project is the first large-scale photovoltaic power generation project in Kyrgyzstan.