The water and energy complex of Central Asia is the basis of the socio-economic stability in the region. Experts of the Eurasian Development Bank (EDB) came to this conclusion.
They note that weakening of cooperation in the water-energy complex of Central Asia in the 2000s coincided with a period of rapidly increasing pressure on the energy sector. High deterioration of infrastructure leads to losses of electricity and shortage of water resources. Lack of consistency in water use leads to severe flooding in downstream countries (Kazakhstan, Turkmenistan, Uzbekistan), summer drought and power shortages in upstream countries (Kyrgyzstan and Tajikistan) (Vinokurov and Libman, 2012).
The main problems are related to the growing shortage of fresh water. The insufficient level of cooperation in the water and energy complex leads to annual economic damage. Unused benefits are estimated at 0.6 percent of the region’s total GDP in agriculture and 0.9 percent of GDP in the energy complex.
«The structure of the investment portfolio is far from optimal, because it does not take into account regional interests. The total investment proposals in the water and energy complex of Central Asia are estimated at $52.8 billion, with investments in the generation segment dominating. At the same time, the water management infrastructure has reached its operating life limit and needs to be updated and upgraded. The countries of Central Asia have rich energy reserves and high potential for the use of renewable energy. Implementation of energy projects, including in the field of green energy, will help to improve the energy balance and, in the future, switch to the export of electricity,» the bank stressed.
