Global Gateway Forum: EU expands investments in hydropower to drive Central Asia’s energy transformation

This article is published in association with European Investment Bank.

European Commission

In a significant boost to energy and water security in Central Asia, the European Union together with partners announced new investments in hydropower infrastructure in Central Asia. Particularly, the Kambarata-1 hydropower plant megaproject in Kyrgyzstan marked noticeable progress, with a total of €900 million in Memoranda of Understanding signed between the EU, European Investment Bank (EIB), and Kyrgyzstan, Kazakhstan and Uzbekistan, and an unveiled feasibility study co-funded by the EU and implemented by the World Bank. The European Bank for Reconstruction and Development (EBRD) also signed Memoranda of Understanding with Kyrgyzstan, Kazakhstan and Uzbekistan and is considering an overall financing package of €1.3 billion in support of the project. 

These new investments will further improve electricity access and unlock economic opportunities for the local population. The announcements were made during the Global Gateway Forum that takes place on 9-10 October in Brussels. 

European Commissioner for International Partnerships, Jozef Síkela, welcomed the new announcements: “During my recent mission across Central Asia, I have very well learned the importance of water for the stability of the whole region. Smart investments in Hydropower plant can improve the access to reliable and affordable electricity, generate income for local people, while supporting sustainable agriculture and protecting people’s health and the environment.  We are proud to support the future construction of the Kambarata-1 hydropower plant that is key to energy production in Central Asia. Our new investments strengthen the strategic partnership between the EU and Central Asian countries.” 

“Enabled by guarantees from the European Commission, the EIB as the climate bank is backing infrastructure that strengthens regional energy cooperation in Central Asia. We see the potential of the Kambarata-1 hydropower plant project as instrumental in expanding renewable electricity trade in the region, fostering economic development, and enhancing energy security,” says EIB Vice-President Kyriacos Kakouris, who oversees the Bank’s operations in Central Asia. These partnerships underscore the European Union’s commitment to deepening its strategic partnership with Central Asia, based on mutual respect and delivering shared benefits for people and the planet.” 

“Kambarata-1 hydropower plant is a flagship regional project for Central Asia, enhancing energy and water security and supporting the expansion of renewable energy. The EBRD, as a leading investor in all participating countries, is pleased to support regional connectivity and effective water management, with the EU and partners,” says EBRD President Odile Renaud-Basso.  

In a Team Europe approach that brings together the European Union, its Member States, finance institutions and private sector, the EU is working together with Central Asia to improve regional coordination on water management. This cooperation also unleashes the region’s hydropower potential, including through the Team Europe Initiative on Water, Energy and Climate Change. It aims to address water and energy challenges, improve regional cooperation, and foster a green and blue transition in Central Asia.  

At the Forum, the EU showcased the impact of the regional green transition and national energy sector reforms, in the context of the Team Europe Initiative on Water, Energy and Climate Change in Central Asia. The participants also discussed the way forward for the two planned Global Gateway projects in the region: Kambarata-1 and Rogun hydropower plants. 

Background

The Kambarata-1 hydropower plant  

This transformative energy megaproject is under preparation on the Naryn River in Kyrgyzstan. It will be the largest hydropower facility in the country and one of the most important in Central Asia. Once completed, it could significantly enhance Kyrgyzstan’s energy security, foster regional cooperation, and contribute to the region’s economic development. As a greenfield project, it has already garnered the interest by international donors, including the EU, the European Investment Bank, the European Bank for Reconstruction and Development, and the Italian development bank Cassa Depositi e Prestiti as Team Europe who reaffirm their position as a central partner for renewable energy production.  

The Rogun hydropower plant  

This clean energy megaproject – the highest dam in the world – is key for Tajikistan and the entire Central Asia region. It could double the country’s energy production by 2032, address domestic shortages, advance the region’s decarbonisation, and allow for regional electricity export. Led by the World Bank, the EU and several donors are building together a sustainable foundation for this project. Several European companies are also actively participating in the project. 

Global Gateway Forum 

The Global Gateway Forum brings together an assembly of leaders from the European Union and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in infrastructure – hard and soft – to deliver on the SDGs and sustainable growth and resilience worldwide.

Global Gateway 

Global Gateway is the EU’s positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. 

The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.