
Published
01/21/2026, 17:20The EBRD is granting Kyrgyzstan a sovereign loan for a 53-kilometre power line and a 500 kV substation near Lake Issyk-Kul. The project will improve the reliability of electricity supply and reduce electricity losses.
The European Bank for Reconstruction and Development will provide the Kyrgyz Republic with a loan of €61.7 million, supplemented by an investment grant and technical support of €3 million each. The funds will be used to modernise the national electricity grid, including the construction of a 500 kV transmission line between Kemyn and Balykchy and a new substation in Balykchy.
The project will reduce electricity losses by 34 GWh per year and greenhouse gas emissions by 3,323 tonnes of CO₂ equivalent. The improved infrastructure will create conditions for the export of green energy to neighbouring countries, strengthening the region's energy sustainability.
Kyrgyzstan's electricity sector, which is based on hydropower resources, has long faced infrastructure deterioration: about 90% of substations have been in operation for more than 25 years, and network losses amount to almost 14.6%. Modernising the grid will not only improve the reliability of electricity supply but also enable the integration of renewable energy sources.



