Kyrgyzstan is discussing payments for renewable energy in yuan, dollars, and rubles

The Kyrgyz Cabinet of Ministers has submitted a draft resolution for public discussion regarding amendments to the medium-term electricity tariff policy for 2025–2030. The document provides for a transition to a multi-currency tariff model for renewable energy producers.

A key innovation is the ability to set tariffs not only in soms but also in several foreign currencies, including the Chinese yuan.

The draft proposes setting the maximum tariff for renewable energy at:

• 4.42 KGS per kWh;
• 0.05 U.S. dollars per kWh;
• 4 rubles per kWh;
• 0.36 yuan per kWh.

The inclusion of the yuan in the tariff range reflects the structure of current and potential investments in the energy sector. As noted in the explanatory memorandum, the list of currencies was compiled taking into account the practices of ongoing projects and investor requests.

Thus, Kyrgyzstan is effectively laying the groundwork for settlements with investors in the currency in which projects are financed.

The draft also stipulates that:

• within the framework of investment agreements and public-private partnership projects, the tariff currency may be determined by the parties;
• for projects selected through auctions, the tariff will be determined based on the results of the competition;
• for other producers, tariff parameters will be approved by a separate decision of the Cabinet of Ministers.

Tariff conversion, if necessary, will be carried out at the official exchange rate of the National Bank of Kyrgyzstan as of the date of approval.

The changes are due to amendments to renewable energy legislation. Previously, the maximum tariff was calculated based on a base rate of 3.4 KGS per kWh, multiplied by a multiplier of 1.3, resulting in a total of 4.42 KGS. However, in 2026, the multiplier was abolished, and the previous calculation method effectively became obsolete. In this regard, the draft proposes to set the achieved tariff level directly at 4.42 KGS per kWh.