Kyrgyzstan Bets on Sunshine: Reform Aims to Turn Solar Power into State Revenue

Kyrgyzstan is embarking on an ambitious reform to harness its abundant sunshine, allowing individuals and businesses to not only meet their own energy needs with solar panels but also sell surplus electricity back to the state.

This initiative comes as the nation grapples with a severe energy crisis. Kyrgyzstan's power system heavily relies on large hydroelectric power stations, which are increasingly vulnerable to climate change, low water levels, and aging infrastructure. This has led to regular winter energy shortages, with the deficit projected to reach 3.5 billion kilowatt-hours, necessitating imports.

The government has approved a "State Program for the Development of Green Energy and Microgeneration until 2030." The plan aims to equip 50,000 homes and 5,000 small businesses with solar panels within four years. Deputy Prime Minister Erlist Akunbekov has been discussing the program's feasibility with government officials, energy experts, and business representatives.

Despite Kyrgyzstan boasting over 1,800 hours of sunshine annually, solar and wind power currently constitute less than 1% of the national energy mix. The program seeks to incentivize the adoption of solar technology by leveraging rising traditional electricity tariffs and the favorable climate. New regulations mandate solar panel installations in new multi-story buildings and legalize the accounting of generated solar power, aiming to reduce transmission losses and ease the burden on distribution networks.