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Member-countries of EDB have excess of electricity. Except for Kyrgyzstan

In most of the EDB member countries (with the exception of Kyrgyzstan) have excess supply of electricity. This is stated in the review «Electric Networks in the Countries of the Eurasian Development Bank (EDB).»

This is due to the fact that the commissioning of new generating facilities outstrips domestic demand for electricity, the document notes. That is why the projects of creating an additional network infrastructure for the export of electricity outside the Eurasian Economic Union (EEU) are relevant now.

EDB analysts note that several important interstate electric grid projects are being implemented now. For example, the CASA-1000 project will allow Tajikistan to smooth out seasonal fluctuations in electricity production and consumption and expand network interconnections with Kyrgyzstan. Also in the medium term, for the export of electricity from new major power plants under construction in Tajikistan and Belarus it will be necessary to create an additional transboundary electric grid infrastructure.

Kazakhstan needs to explore the possibilities for exporting surplus electricity to new destinations, including China and South Asia.

In the longer term, it is possible to implement projects within the Asian energy ring — energy bridges connecting the systems of Russia, Japan, China, the countries of the Korean peninsula, Mongolia, and potentially Kazakhstan and Kyrgyzstan.

Also, EDB analysts noted that the level of depreciation of power grid assets in most of the EEU countries exceeds 50 percent. More than half of the equipment is operated outside the normative service life. The main part of electrical networks in the post-Soviet space was built in 1960–1980. The need for investment in the renewal of fixed assets is estimated at billions and tens of billions of US dollars.

«Reduction of power losses in networks is still topical. Excessive losses in the network, primarily due to unaccounted consumption are one of the most pressing problems of the electric grid economy in Kyrgyzstan and Tajikistan, and also a relatively lesser extent in Armenia and Kazakhstan. Even in Russia and Belarus, the most prosperous countries of the EEU in terms of the level of electricity losses in the networks, there is still a significant potential to reduce them," the report says.

At the same time, it was noted that weak regulatory systems and state ownership are the main obstacles for the development of the electric grid sector. At the same time, the EDB believes that privatization of the industry can become a driver of reforms.