Reliable and affordable energy supply is fundamental for economic growth, higher living standards, and social equity. The effective delivery of modern energy services, whether electricity, heating or hot water services, helps to improve the quality of life for all citizens, expands opportunities for private businesses — and ultimately creates jobs.
In the Kyrgyz Republic, energy is also a source of revenue, when electricity is generated in sufficient quantities to be exported, thereby helping to diversify the economy and open new markets.
Today, however, the country is not making the most of its endowments and its energy potential in the form of hydro resources or renewable energy. While citizens enjoy universal access to electricity and low prices, the energy sector is financially distressed and its assets antiquated with frequent break-downs.
As such, the country faces challenges in maintaining access to quality energy services. State support to the energy sector comes at the expense of other spending priorities, such as in the health and education sectors. And, as the energy sector requires more and more loans to meet urgent repair and rehabilitation needs, the country faces a growing debt burden which impacts macro-stability.
To learn more about the energy sector in the Kyrgyz Republic, please see the Related Links.