CAREC Institute Successfully Host Policy Dialogue and Country Consultation on Renewable Energy Investment Ecosystem Study

The CAREC Institute (CI), in partnership with the Islamic Development Bank (IsDB) and the Islamic Centre for Development of Trade (ICDT), conducted a Policy Dialogue and Country Consultation on the recently completed study, Renewable Energy Investment Ecosystem.

The virtual session attracted over 70 participants, including 30 representatives from five Central Asian countries: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Key attendees included officials from the Ministries of Energy and Investment, representatives from investment promotion agencies/green funds, and members of the private energy sector.

Charymuhammet Shallyyev, Director of the CAREC Institute, and Kuat Akizhanov, Deputy Director Two of the CAREC Institute, inaugurated the session. Ms. May Ali Babiker, Director of the IsDB Cooperation and Capacity Development Department, and Ms. Latifa El Bouabdellaoui, Director General of ICDT, delivered the opening remarks. Both teams acknowledged the importance of the topic, emphasizing its relevance to COP29 objectives and the facilitation of green energy investment. Dr. Asif Razzaq, Senior Research Specialist at CI, presented the key findings of the study, supported by his research team. At the same time, Dr. Ghulam Samad, Chief of the Research Division at CI, moderated the session. Discussions were interactive, focusing on gathering feedback from panelists representing various ministries. The feedback centered on aligning the ecosystem’s findings with national targets and ongoing reforms in their respective countries.

The panelists commended the report for its detailed analysis of over 200 ecosystem indicators across 15 pillars, acknowledging its relevance and value in addressing the region’s pressing energy transition needs. Specifically, panelists from Kazakhstan emphasized the role of auctions in reducing renewable energy costs, tariff indexation to address currency fluctuations, and integrating innovative technologies like hydrogen and battery storage. Panelists suggested discussing the detailed analysis of market-driven competition and its importance as government support for renewables transitions to a free-market approach.

Kyrgyzstan panelists highlighted progress in small-scale renewable energy projects and the need for clear institutional responsibilities to streamline investments. Participants commended the study’s emphasis on green financing mechanisms and alignment with the country’s priorities in addressing growing electricity demand and infrastructure challenges. Panelists also emphasized the importance of capacity building within relevant ministries to enhance the preparation, execution, and management of renewable energy projects, ensuring long-term success in the energy transition.

Tajikistan panelists underlined the importance of diversifying its energy mix, currently dominated by hydropower, with solar and wind energy. Panelists acknowledged the report’s insights on addressing grid modernization and leveraging regional energy trade, underscoring its significance for Tajikistan’s sustainable energy goals.

Turkmenistan panelists showcased its progress in creating a favorable regulatory environment for renewables, including laws on public-private partnerships and incentives like customs duty exemptions for renewable projects. The study’s focus on regional collaboration and innovative energy solutions resonated strongly with the panelists, who endorsed its recommendations.

Uzbekistan panelists highlighted significant achievements in scaling renewables, with ambitious targets to reach 40% renewable energy by 2030. Panelists valued the study’s findings on accelerating energy efficiency and grid modernization, viewing it as a roadmap for Uzbekistan’s renewable energy ambitions.

Moreover, Alih Suwarelzahab, Senior Legal Counsel at the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), IsDB Group, highlighted the importance of risk mitigation. He shared insights on how insurance mechanisms can help minimize potential risks in the energy sector.

CAREC Institute, IsDB, and ICDT are planning further progress on implementing the Investment Promotion Program, primarily derived from the overall energy ecosystem study. This proposed plan aims to deepen the understanding and operational effectiveness of the investment promotion program, streamline renewable energy investment processes, and ensure the successful execution of its operations.

In his closing remarks, Mr. Kadir Basboga, Associate Manager of the Regional Integration, Cooperation & Capacity Development Department at IsDB, commended the comprehensive findings of the study and acknowledged the thoughtful responses provided by the respective ministries. He highlighted IsDB’s unwavering commitment to collaborating with the CAREC Institute and Central Asian nations to establish a robust and conducive energy investment ecosystem, paving the way for sustainable growth and regional energy transformation.