World Bank Approves $1.018B REMIT Program to Create Central Asia’s First Regional Electricity Market

The World Bank has approved the Regional Electricity Market Interconnectivity and Trade (REMIT) Program, a 10-year initiative designed to transform how power is generated, traded, and transmitted across Central Asia. With total indicative financing of $1.018 billion, the program aims to establish the region’s first regional electricity market, expand cross-border electricity trade, strengthen transmission infrastructure, and accelerate the integration of clean energy at scale.

Electricity demand in Central Asia is rising sharply, driven by population growth, urbanization, and industrial expansion, and is projected to triple by 2050 under current trends. Yet regional electricity trade currently meets only around 3 percent of demand, while renewables account for just 4 percent of generation. REMIT seeks to close this gap by unlocking the region’s complementary energy assets and improving coordination across national power systems.

 

Building a Regional Power Market

 

The program will be implemented in three phases. In the first phase, the Kyrgyz Republic, Tajikistan, Uzbekistan, and the Central Asian Countries’ Coordinating Dispatch Center, CDC Energia, will receive $143.2 million in grants and concessional financing. This includes $140 million from the World Bank’s International Development Association and $3.2 million in grants from the Central Asia Water and Energy Program.

Initial investments will focus on laying the foundations for a regional electricity market, strengthening grid coordination, and upgrading transmission systems. Over the full program horizon, REMIT aims to raise annual electricity trade to at least 15,000 GWh, more than triple regional transmission capacity to 16 GW, and enable the deployment of up to 9 GW of clean energy resources.

 

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Unlocking Complementary Energy Resources

 

Central Asia’s energy systems are highly complementary. Hydropower resources are concentrated in the Kyrgyz Republic and Tajikistan, while Kazakhstan, Turkmenistan, and Uzbekistan rely more heavily on thermal generation. At the same time, solar and wind potential is growing across the region. REMIT is designed to better balance these assets through cross-border trade, reducing outages, lowering costs, and improving overall system resilience.

According to Najy Benhassine, World Bank Regional Director for Central Asia, deeper energy cooperation could deliver significant economic returns. By 2050, stronger electricity connectivity and trade are expected to generate up to $15 billion in economic benefits for the region, alongside improved energy security and job creation.

 

Clean Energy and Private Investment

 

Beyond public financing, REMIT is structured to crowd in private capital. The World Bank estimates that the first phase alone could enable around 900 MW of new clean energy capacity, leveraging approximately $700 million in private investment. Digital grid systems and market platforms introduced under the program are intended to improve reliability, transparency, and investor confidence.

Charles Cormier, World Bank Regional Infrastructure Director for Europe and Central Asia, highlighted that a functioning regional electricity market is critical to attracting private investment and enabling large-scale renewable integration. Over time, future phases will expand the market platform, further digitalize transmission networks, and strengthen regional institutions.

 

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Governance and Long-Term Impact

 

CDC Energia will coordinate regional power exchanges and lead market and institutional activities, while national transmission companies will implement grid investments. Oversight will be provided by a Regional Steering Committee comprising energy ministries and implementing agencies from participating countries.

If successfully implemented, REMIT would mark a structural shift in Central Asia’s power sector. By moving from fragmented national systems toward a coordinated regional market, the program positions electricity trade and clean energy as central pillars of long-term economic growth, energy security, and decarbonization across the region.