Enhancing Regional Cooperation

Central Asia has the potential to re-establish a commercially viable, market-based power system. A Central Asia Regional Electricity Market, or CAREM, will assure the region’s long-term energy security and economic growth and also serve as a platform for an expanded Central Asia-South Asia regional power market.

All of the Central Asian countries share some common energy sector objectives and concerns, such as ensuring a reliable and secure power supply at the lowest cost, maintaining technical standards, meeting investment needs and more. Currently, the Central Asian countries pursue self-sufficient power supplies, while more cost-effective options based on regional power trade remain largely underutilized. An improved regional power system would address these issues. Recent trends towards greater bi-lateral energy trade are hopeful signs that suggest the time is right for a regional power market.

ACTIVITY COUNTRIES AND DURATION

Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan; August 2017-August 2021

WHAT IS NEEDED?

• International Financial Institutions and other donors have recognized the need for a commercially viable regional power market.
• Political commitment from all five Central Asian countries.
• U.S. technical assistance and diplomatic engagement, closely coordinated with financing from International Financial Institutions and other donors.

THE END GOAL

The ultimate goal of the Central Asia Regional Electricity Market activity is an integrated power market with effective regional institutions that ensure fair and consistent transactions for all countries; common standards for performance; fair and non-discriminatory pricing; and full access to the power grid.

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