Kyrgyzstan energy profile

Kyrgyz Republic Energy Profile

Overview

• Geography: Kyrgyz Republic (Kyrgyzstan) is located in Central Asia, bordered by Kazakhstan, Uzbekistan, Tajikistan, and China.
• Area & Population: The country spans 200,000 square kilometers with a population of approximately 6.3 million.
• Energy Sources: Hydropower is the most important energy source, followed by coal. Oil and natural gas resources are marginal.
• Economic Context: Kyrgyzstan gained independence in 1991 and has seen significant structural market reforms contributing to economic growth. However, poverty remains around 22.4%.

Key Energy Data

• Total Primary Energy Supply (TPES): 3.9 million tonnes of oil equivalent (Mtoe) in 2015, increasing to 4.6 Mtoe in 2018.
• Total Final Consumption (TFC): 4.2 Mtoe in 2018, growing rapidly (+72% since 2008).
• Domestic Production: 2.3 Mtoe in 2018, primarily composed of hydropower (53%) and coal (37%).
• Imports: Imports cover the remaining half of annual consumption, with over 90% of oil products and natural gas imported.

Energy Sector Governance

• Policy Priorities: Improving energy security through developing indigenous energy sources (hydro and coal), rehabilitating and expanding transmission and distribution networks, and enhancing energy efficiency.
• Recent Developments: Strengthened energy sector ties with China, including several key projects financed by China. Kyrgyzstan also joined the Eurasian Economic Union (EAEU) in 2015.

Energy Security

• Resource Endowment: Hydropower accounts for two-thirds of energy production.
• Diversification: Significant reliance on oil and gas imports, particularly during winter months when hydropower production is low.
• Emergency Response: Regional integration with neighboring countries is crucial for emergency response.

Market Design

• National Market Structure: Hydropower dominates domestic electricity production.
• Regulatory Framework: Hydropower and coal production are the main contributors to energy supply.
• Regional Markets: Kyrgyzstan is part of the Central Asian Power System, with plans for new integration projects like CASA-1000.

Sustainable Development

• Renewable Energy: Hydropower contributes to 90% of total electricity generation.
• Energy Efficiency: Electricity consumption per capita has increased by over 45% from 2010 to 2018.
• Fuel Switching: Government initiatives aim to reduce dependence on imports and promote decentralized heating.

Challenges

• Infrastructure: Aged infrastructure and significant losses due to heavy subsidies for electricity consumption.
• Investment: Lack of investment in energy sector rehabilitation, leading to system wear and tear.

Overall, Kyrgyz Republic faces significant challenges in maintaining energy security and promoting sustainable development, but efforts are underway to address these issues.