Domestic investors account for more than 99 percent of funding for small hydropower projects in Kyrgyzstan, supported by state land concessions and high regional purchase tariffs, state data showed.
Figures presented by the state Green Energy Fund at the Eighth Kyrgyz-Russian Economic Forum indicate that local companies form the backbone of the country’s small hydro expansion. Bishkek provides 15-year land leases for small hydro developments and 25-year leases for solar installations, while maintaining purchase prices for renewable power that are currently the highest in Central Asia.
The regulatory incentives have led to a rapid increase in distributed generation. More than 20 small hydropower plants are already operational across the country, with between 40 and 50 additional facilities under construction on various rivers.
The push to build renewable capacity comes as national electricity consumption nearly matches total generation, forcing authorities to accelerate power additions to prevent deficits. State utility providers are simultaneously seeking capital to modernize aging distribution grid infrastructure.
Kyrgyzstan is also expanding into solar power, expecting to launch the initial 100-megawatt phase of a new solar plant by the end of August. While domestic capital currently dominates small hydro, officials used the forum to invite Russian corporations to invest under existing preferential terms.
