BAKU, Azerbaijan, December 23. Trend presents an overview of the key events in Tajikistan's energy sector in 2023.
In 2023, significant attention has been directed toward the development of the green energy sector, which, according to official data, currently accounts for 98 percent of the country's electricity production.
Tajikistan has been actively fostering collaborations aimed at the advancement of hydroelectric power plants, engaging international financial institutions. Additionally, efforts were made to develop the oil and gas industry, which is currently not very advanced.
Construction of Rogun Hydropower Plant (HPP)
Throughout 2023, Tajikistan has placed significant emphasis on advancing its largest energy endeavor, the construction of the Rogun Hydropower Plant (HPP).
The World Bank (WB) pledged $15 million in January 2023 for technical assistance to the project.
The Islamic Development Bank (IsDB) expressed a commitment in February to fund Tajikistan's national economy, including a $150 million contribution specifically allocated for the Rogun HPP.
Prime Minister Kokhir Rasulzoda highlighted in June the potential for the completed Rogun HPP to facilitate electricity exports to neighboring countries and regions like the countries of Eurasian Economic Union (EAEU), Afghanistan, and Pakistan.
Moreover, the WB's report emphasized Tajikistan's potential to become a substantial provider of clean energy for Central Asia, particularly through the Rogun HPP. Experts predicted that about 60 percent of the plant's generated power would be exported.
At the Tajikistan-Germany investment forum in September 2023, Daler Juma, the Minister of Energy and Water Resources of Tajikistan, reiterated plans to bolster electricity generation in the country, with a primary focus on the Rogun HPP. He also outlined ongoing efforts to upgrade other existing power facilities from the 1950s and 1960s.
On December 6, the Saudi Fund for Development (SFD) and Tajikistan's Ministry of Finance signed an agreement, securing a $100 million contribution from the Saudi Fund for the development of the Rogun HPP project.
The Rogun HPP is estimated to have an installed capacity of 3,600 MW and annual electricity generation of 13 to 17 billion kilowatt-hours following full commissioning in 2033.
Reconstruction of Sarband Hydropower Plant (HPP)
On April 25, President of Tajikistan Emomali Rahmon launched the last turbine of the reconstructed Sarband Hydropower Plant (HPP), on the Vakhsh river in the southern part of the country.
The power output of the turbine after the reconstruction is 39 MW. This turbine is the final one among the six turbines to be put into operation following the reconstruction of the HPP, with the others gradually coming online starting in 2018.
Previously, the station's capacity was 160 MW, but after the reconstruction efforts, it increased to 270 MW. By April 20, 2023, the HPP had generated over 3.132 billion kWh of electricity.
Construction of the Sebzor Hydropower Plant (HPP)
In early November 2023, the construction project of the Sebzor Hydroelectric Power Plant (HPP) in Tajikistan received gold certification from the Hydropower Sustainability Council.
The Hydropower Sustainability Standard serves as a global certification framework, establishing sustainability criteria for hydropower projects worldwide. This standard encompasses twelve environmental, social, and governance (ESG) aspects, covering topics such as biodiversity, invasive species, indigenous peoples, and cultural heritage.
Additionally, it was announced in December that the German KfW Development Bank will provide a 10 million euro grant for the construction of the Sebzor HPP.
The Sebzor HPP is designed to have a capacity of 11 MW. Commercial operation is set to begin in 2025, aiming for an average annual output of 77.6 GWh.
New HPPs in Zarafshan river
In June 2023, Uzbekistan and Tajikistan initiated the first phase of constructing two hydroelectric power plants on Zarafshan river on Tajikistan's territory.
The initial stage includes geological exploration and surveys, followed by technical and economic studies. The project involves building the 140 MW Yavan HPP and the 135 MW Fandaryo HPP. International financial institutions, such as the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD), have shown interest in financing the project, alongside the countries' own investments in the joint venture's capital.
Reconstruction of Golovnaya Hydropower Plant (HPP)
On February 21, it was announced that the ADB allocated $136 million for the Golovnaya Hydropower Plant to be overhauled.
The project's total cost amounted to $170 million. The overhaul is being carried out by the Tajik state energy company "Barqi Tojik" and is expected to be completed by February 13, 2024.
The project aims to upgrade the electric and mechanical equipment of the plant, increasing its generation capacity from 240 MW to 252 MW. The generated energy will be used for domestic consumption and export purposes.
On September 29, 2023, a Memorandum of Understanding was signed between the Ministry of Energy and Water Resources of Tajikistan and the UAE’s Masdar company. According to the Memorandum, Masdar will undertake projects in Tajikistan focusing on renewable energy sources (both hydroelectric and wind power plants), with a combined capacity of 1,000 MW.
Tajikistan’s oil and gas sector
Regarding the oil and gas sector, it was announced in January that the branch of the China National Petroleum Corporation (CNPC) would undertake exploration work in Tajikistan. Representatives from CNPC highlighted that the successful completion of these explorations could significantly contribute to the development of Tajikistan's oil and gas industry.
Furthermore, Sharifa Khudobakhsh, the Deputy Minister of Energy of Tajikistan, said that Tajikistan's gas reserves exceed 900 billion cubic meters, and its oil reserves surpass 150 million tons.
Khudobakhsh noted that these assessments of 900 billion cubic meters of gas and 150 million tons of oil were made during the Soviet era. However, she expressed expectations that the actual reserves are much larger, particularly in the subsalt zone of the Tajik Basin.
She emphasized that the government is actively collaborating with leading oil and gas companies to explore and identify valuable resources.
Plans for the future
The Tajikistan government has repeatedly expressed its intention to significantly increase the country's energy production capacity by utilizing renewable energy resources such as water, solar, and wind power.
"Our country continues to advance in this field and aims to double its green energy production capacity in the future," said the country's President Emomali Rahmon on December 1 at the plenary session of the 28 United Nations Climate Change Conference in Dubai (COP 28).
Additionally, Minister of Energy Daler Juma, during the Tajikistan-Germany investment forum in Dushanbe in early September, outlined plans to triple the country’s electricity exports by 2030.
He highlighted that achieving this goal is expected through various energy projects, notably the CASA-1000 initiative. This initiative involves the installation of power transmission lines linking Tajikistan, Kyrgyzstan, Afghanistan, and Pakistan. Juma also emphasized the efforts of energy companies in Tajikistan to reduce electricity losses to 10 percent of production.
According to the WB, Tajikistan's long-term outlook shows promising prospects in the green energy transition, aligning with regional efforts to reduce carbon emissions and boost electricity production,
“Tajikistan’s hydroelectricity energy capacity may become a major source of clean energy for the Central Asia region”, the WB said.
Experts of the bank predict that Tajikistan will experience substantial benefits from the increased production of electricity, particularly from the Rogun HPP.