WASHINGTON, December 22, 2025-The World Bank's Board of Executive Directors today approved the Regional Electricity Market Interconnectivity and Trade (REMIT) Program, which will be implemented over a 10-year period across three phases to boost energy connectivity in Central Asia. The multi-phase program will establish Central Asia's first-ever regional electricity market, increase electricity trade, expand transmission capacity, and lay the groundwork for large-scale renewable energy integration.
During the REMIT Program's first phase, the Kyrgyz Republic, Tajikistan, and Uzbekistan, as well as the Central Asian Countries' Coordinating Dispatch Center (CDC) Energia, will benefit from program grants and concessional financing totaling $143.2 million, comprising $140 million from the World Bank's International Development Association (IDA) and $3.2 million in grants from the Central Asia Water and Energy Program (CAWEP), to implement their respective activities.
Electricity demand in Central Asia is climbing fast and is projected to triple by 2050 under a business-as-usual scenario. As the region's economies grow, resulting in population growth, more industries, and larger cities, the need for affordable, reliable, and sustainable energy is becoming more urgent than ever.
Despite its potential to enhance energy security and affordability, electricity trade in Central Asia remains limited, reaching only about 3 percent of total electricity demand. Variable renewables contribute only 4 percent of power generation, even though the region is endowed with abundant and highly complementary clean energy resources that remain underutilized.
The REMIT Program aims to harness the region's complementary energy assets: hydropower in the Kyrgyz Republic and Tajikistan, thermal power in Kazakhstan, Turkmenistan, and Uzbekistan, and the growing solar and wind potential across all Central Asia countries.
Over the next decade, the REMIT Program aims to increase electricity trade to at least 15,000 GWh annually - enough to meet the yearly needs of millions of people across Central Asia, while more than tripling transmission capacity to 16 GW and enabling up to 9 GW of clean energy resources. Strengthening regional integration will support a more balanced and resilient power system, reduce outages, and lower energy costs for households and businesses.
"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," said 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 has total indicative financing of $1.018 billion across three phases. These funds will help finance the design and operationalization of a regional energy market, strengthen regional transmission capacity, introduce digital systems to improve grid reliability, and enhance regional institutions and coordination. Program investments will also create direct construction-related jobs as well as highly skilled roles to operate 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," said Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia.
Future phases will build on this foundation by expanding the market platform, reinforcing and digitalizing regional transmission networks, and strengthening regional institutions.
CDC Energia, mandated to coordinate power exchanges between Central Asian countries, will implement the market and institutional activities, while national transmission companies will carry out grid investments. A Regional Steering Committee, comprising energy ministries and implementing agencies, will oversee the overall program implementation.
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.
