Central Asia’s Green Energy Transition: Renewables Growth and Key Initiatives
Kazakhstan’s capital, Astana, has become the epicenter of Central Asia’s accelerating shift toward renewable energy, as regional governments and international investors converge on the city to showcase and debate the next phase of the green energy transition. The PowerTech Expo 2026, held this week in Astana, drew ministers, energy executives, and diplomats to discuss how Central Asia can scale up solar, wind, and hydroelectric projects amid a global surge in renewable capacity installations—now at record levels after a 692-gigawatt expansion in 2025 alone.
The expo’s timing reflects a broader regional push to diversify energy sources away from fossil fuels, even as coal production in Central Asia rose by 7% last year to 115 million tons, driven by domestic demand and exports to India. Kazakhstan, the region’s largest economy, has positioned itself as a leader in this transition, with state-owned energy companies and private developers racing to meet national targets for renewable capacity. The government’s Green Economy Concept, announced in 2023, aims to derive 50% of the country’s electricity from renewables by 2030—a target that officials say will require $20 billion in investments over the next five years.
At the expo, Kairat Kelimbetov, Kazakhstan’s Minister of Energy, emphasized that the country’s geographic advantages—vast steppes for wind farms and the sun-rich southern regions—make it a natural hub for renewable energy development. “We are not just following global trends; we are setting them,” Kelimbetov told attendees, citing recent approvals for large-scale solar parks in the Mangystau and Turkestan regions. The minister did not disclose specific project timelines but confirmed that contracts with Chinese and European firms were under negotiation.
Yet the regional push faces challenges. While Kazakhstan and Uzbekistan have made progress in solar and wind, the Central Asian Energy Club, a regional forum, has warned that fragmented national policies and outdated transmission grids could hinder integration. “The real test will be whether these countries can coordinate their efforts to create a common energy market,” said Dilshod Nazarov, an energy analyst at the Central Asian Institute for Strategic Studies, during a panel at the expo. Nazarov’s remarks align with recent calls from international organizations, including the International Renewable Energy Agency (IRENA), for greater regional cooperation to avoid inefficiencies.
The expo also highlighted the role of international financing. The European Bank for Reconstruction and Development (EBRD) announced a $500 million fund to support renewable projects in Kazakhstan and neighboring Kyrgyzstan, while the Asian Development Bank (ADB) pledged additional funding for grid modernization. These commitments come as Central Asian governments seek to balance energy security with climate commitments, particularly ahead of the UN Climate Change Conference (COP32), which Kazakhstan is set to host in 2028.
Meanwhile, the region’s coal-dependent economies—particularly Kazakhstan and Uzbekistan—continue to face pressure from global buyers and lenders to phase out subsidies for fossil fuels. A recent report from the World Bank, cited during a side event at the expo, noted that coal subsidies in Central Asia totaled $3.2 billion in 2025, a figure that could divert critical funds from renewable initiatives. The report did not specify which governments were most reliant on coal subsidies, but officials from both countries acknowledged the need for a gradual transition.
The expo’s closing session focused on the next steps, with participants agreeing to establish a Central Asian Renewable Energy Task Force to streamline cross-border projects. The task force, co-chaired by Kazakhstan and Tajikistan, will begin operations in the fourth quarter of 2026, though details on its structure and funding remain under discussion. For now, the immediate priority remains securing the investments needed to meet the region’s ambitious—but still uncertain—renewable targets.