Electricity tariffs in Central Asia remain below cost and are holding back investment — EDB

In Central Asian countries, current tariff policies in the electricity sector are limiting the inflow of investment into the industry. This is stated in analytical reports by the Eurasian Development Bank (EDB).

According to the bank, in many countries in the region, electricity tariffs are used as a tool for social support. However, their level often does not reflect the actual cost of electricity generation, which distorts market incentives and reduces the sector’s investment attractiveness.

According to the estimates presented, retail electricity prices in a number of countries remain significantly below the indicative cost level of a new coal-fired power station. Specifically, in:

• Turkmenistan, the tariff is approximately 2 cents per kWh;
• Kyrgyzstan — around 3 cents per kWh;
• Tajikistan — around 5 cents per kWh;
• Uzbekistan — around 7 cents per kWh;
• Kazakhstan — approximately 6–7 cents per kWh.

At the same time, analysts estimate that the indicative cost of electricity generation at a new coal-fired power station is significantly higher — at around 17 cents per kWh.