Kyrgyzstan's power sector will remain dominated by hydropower over our 10-year forecastperiod due to a lack of other projects being commissioned. High reliance on hydropower, with its outputaffected by seasonal changes, will result in the country suffering from electricity deficits. High T&D losseswill plague the country's power sector due to an inefficient grid network. Regional trading will remainunder threat as the CASA-1000 interconnector project is vulnerable to security risks.
Latest Updates And Structural Trends
A Czech company, Liglass Trading, has reportedly been chosen by the Kyrgyz government to replaceRussia in constructing the Upper Naryn hydropower project. Liglass Trading will reportedly also beconstructing a further 10 small hydropower projects in Kyrgyzstan.
While we note that this is potentially a positive development for Kyrgyzstan's hydropower ambitions, weawait construction to start before factoring the project into our forecasts, due to previous delays andcancellations. There are reportedly irregularities surrounding the awarding of the contract to Liglasstrading and, as of yet, the company has allegedly not yet paid the pledged USD37mn to buy out thecontract from RusHydro.