[{"bbox": [119, 151, 1111, 322], "category": "Text", "text": "In terms of power sector development, the ambitious 10/10/10/10 concept of the NDS envisions by 2030 an increase of the installed capacity of the power system to 10 GW (of which 3.6GW would come from the Roghun Plant), and an annual export of 10 billion kWh of power to neighbouring countries. In line with these goals, the latest strategic goals of the public sector earmarked by MEWR for the next ten years include the construction of up to 700 MW of big scale solar power generating capacity. Finally, the Action Plan for Financial Recovery of BT announced in April 2019 by the Government includes the completion of BT's unbundling, the establishment of a full scope Electricity Regulatory Authority, and the achievement of a cost recovery tariff by 2025 through a number of tariff increases¹³."}, {"bbox": [119, 332, 1111, 648], "category": "Text", "text": "The low institutional capacity of the recently unbundled State Electricity Company BT, and the low level of attractiveness of the existing legal and regulatory framework for private investments are key barriers that need to be lifted for creating the necessary conditions to achieve a significant level of openness for trade in services and investment in the Tajikistan power market. The MEWR estimates that the power demand growth for the next ten years will average 6-7% per year, leading to almost doubling the current power consumption in ten years. The limited and inefficient provision of power causes severe challenges for socio-economic development. The reconnection of the previously existing Central Asian (CA) power system and consequent power exchange between CA countries will be beneficial in terms of improved security of power supply. This will also enhance agricultural productivity at a regional level, a key sector for the 5 republics. The ADB and USAID both have ongoing projects aimed at setting up a regional energy market in Central Asia¹⁴. Synergies with ADB's Central Asia Regional Economic Cooperation Program (CAREC) and USAID's Central Asia Regional Electricity Market (CAREM) are to be sought, at the same time as the EU explores possible collaboration with USAID regarding the EU's new programme 'EU Support to Sustainable Energy Connectivity in Central Asia'."}, {"bbox": [119, 658, 1111, 806], "category": "Text", "text": "Once established, cooperation in the sector and connection of the power systems in the region will result in improved sustainability of energy supply in the wider region, including Afghanistan and Pakistan. Thus, the sector has a high political charge as it offers the best export opportunity to Tajikistan and a bigger role at regional level. **The highest levels of government are closely following the sector. The energy sector is indeed seen as strategic by the GoT, especially through the Energy-Water-Food security nexus perspective.** The Dushanbe Conference on Water, framed in the UN Water Decade, is set to give this action the political momentum needed."}, {"bbox": [119, 827, 1111, 974], "category": "Text", "text": "The EU provides substantial support to increasing the reliability of the power systems, the development of the regional power trading in Central Asia, to strengthening resilience against the adverse effects of climate change. The regional dimension of the proposed action is also clear in issues related to climate change mitigation, i.e., energy saving and efficient use of water and energy, including use of RE technology for the modernisation of the irrigation systems (solar water pumps). This makes this action relevant to be included under the umbrella of the proposed CA regional TEI on Water, energy and climate change."}, {"bbox": [119, 984, 1111, 1180], "category": "Text", "text": "This programme will allow the EU Delegation to **gain political leverage in a key sector for the country's politics and economy**, and **steer the European Financial Institutions investments**. From a regional perspective, sound natural resource management and climate change impact mitigation are of high interest for the active member states in the region. Tajikistan has hardly begun to exploit other resources with a high potential, such as **solar energy**. The deployment of large-scale photovoltaic solar farms in Tajikistan, in conjunction with the replacement of traditional water pumps with solar water pumps, will significantly reduce the hydropower consumption for irrigation in wet periods, thus increasing the available hydropower capacity in dry periods, and thus compensating the existing deficit of power capacity."}, {"bbox": [110, 1360, 496, 1382], "category": "Footnote", "text": "¹³ Tajikistan Energy Efficiency Framework, EBRD, 2020"}, {"bbox": [109, 1381, 1122, 1537], "category": "Footnote", "text": "¹⁴ Since 2015, the Asian Development Bank (ADB) is helping Tajikistan introduce a wholesale metering and billing system for BT under a USD 54 million Subsidiary Loan Agreement amended in February 2021 to the Equity Contribution Agreement. In December 2020, ADB has approved a USD 105 million grant to accelerate the implementation of ongoing reforms and improve the financial sustainability of the power sector in Tajikistan¹⁴. The total cost of the programme is USD 145 million, with the Government of Tajikistan providing USD 15 million, and EBRD providing a USD 25 million loan. The program is expected to be completed in 2026. The **Power Sector Development Programme** includes, among others restructuring of the utility's excessive liabilities, the establishment of a regulator, the adoption of a tariff methodology, and the establishment of a new centralised cash control system among unbundled entities. As a part of reforms and institutional capacity building, a newly established power distribution company will be given a five-year management contract (currently under negotiation)."}, {"bbox": [109, 1536, 1122, 1615], "category": "Footnote", "text": "USAID financed project Power the Future (PtF) has been providing intensive technical assistance to prepare Tajikistan's first new edition of the Electrical Installation Rules (PUE) since 1986. PtF Activity is accelerating Central Asia's transition to cost-effective, low emission, energy-secure, and climate resilient economies through increasing the deployment of renewable energy and energy efficiency in all five Central Asian countries. PtF helps CA countries to create an economically viable Central Asia Regional Electricity Market (CAREM). INTPA discusses with USAID collaboration in the field."}, {"bbox": [1012, 1658, 1122, 1682], "category": "Page-footer", "text": "Page 6 of 26"}]