Tajik hydropower to help light up neighbouring countries
A US$ 110 million (€101 million equivalent) loan to Tajikistan’s national electricity company will help the Central Asian nation further unlock its hydropower potential and export electricity to neighbouring Afghanistan and Pakistan, both of which rely heavily on fossil fuels.
The loan to state-owned utility Barki Tojik will finance the construction of a power converter station and related infrastructure that will form part of a high-voltage transmission line venture known as the Central Asia South Asia Electricity and Trade Project, or CASA-1000.
Thanks to CASA-1000, Tajikistan and the Kyrgyz Republic will be able to sell more of their summer electricity surplus to Afghanistan and Pakistan. By importing zero-carbon hydropower to replace carbon-intensive electricity, Pakistan will cut its CO2 emissions by more than 1.5 million tonnes per year, which is equivalent to the carbon emissions of more than 750,000 cars.
The EBRD financing is conditional on Barki Tojik implementing reforms including the establishment of an independent energy regulator and third-party access rules for the cross-border transmission line.
Pakistan will cut its
by more than 1.5 million tonnes per year
An independent energy
regulator will be established