On 28 July,the Kyrgyzstan government signed an agreement with the Vietnamese energy company Rox Energy Global and RECA LLC to develop a 1.9GW solar power plant in the village of Kyzyl-Oruk in the Issyk-Kul region.Due for completion by 2027,this project is set to become Central Asia’s largest solar initiative,meeting 20%of the country’s annual electricity demand and reducing carbon dioxide emissions by around 18 million tonnes.
As the region’s first GW-scale solar project to receive foreign funding,the model it employs,combining government subsidies,international financing and local operations,is expected to serve as a reference for other countries,including Uzbekistan and Tajikistan.Technologies such as bifacial double-glass modules and smart inverters,which are being used in the development,have already been incorporated into Kyrgyzstan’s White Paper on Renewable Energy Technology Standards.
Kyrgyzstan has long relied on hydropower,which accounts for over 80%of its energy mix,and faces electricity shortages of up to 30%in winter when snowmelt decreases.According to the International Renewable Energy Agency,it had no operational solar capacity by the end of 2024.To address this issue,the government has introduced a series of policies in recent years,including the 2023'Energy Emergency Decree'which established a green energy fund,the 2024'100 Projects'investment programme which prioritises solar energy,and the 2025 target to begin exporting electricity by 2026.This 1.9GW project,alongside a 300MW scheme supported by the European Bank for Reconstruction and Development,marks Kyrgyzstan’s entry into the'GW-scale solar era'.
In order to attract foreign investment,Kyrgyzstan has introduced a'golden policy package'offering 49 years of free land use,tax exemptions on imported equipment,and zero value-added tax.Through a public-private partnership with RECA LLC,Rox Energy Global secured state-owned land in Kyzyl-Oruk,bypassing restrictions on foreign ownership of agricultural land.The project has also secured a$210 million loan from the European Bank for Reconstruction and Development,which eases financial pressures.
The Issyk-Kul Region,which has 3,000 hours of sunshine per year,is one of the most solar-rich areas in Central Asia.The development will integrate solar generation with energy storage and a smart grid,enabling participation in cross-border electricity trades via Central Asia’s unified grid and aligning with Kyrgyzstan’s export goals.
Rox Group,a diversified conglomerate with existing interests in Central Asian real estate and finance,is extending its regional footprint through this energy project.By leveraging RECA LLC’s local expertise,Rox Group has been able to navigate policy challenges.For example,the 2023 revisions to land conversion rules reduced compensation for converting agricultural land for industrial use by a factor of ten,thereby cutting upfront costs.This blend of capital and local knowledge has helped Rox Group to outpace its competitors.
However,risks remain,including ageing grid infrastructure with an 18%transmission loss rate and land ownership disputes.Rox Energy Global is addressing these risks through partnerships,such as collaborating with China Energy Engineering to introduce a digital grid management system with the aim of keeping curtailment below five per cent,and joining forces with RECA LLC to set up a'green jobs fund'to train local technicians and ensure local operational expertise throughout the project's lifecycle.
