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- 21 Jan 2022
Kyrgyzstan's power sector is dominated by state-owned open joint-stock companies (OJSCs). Private participation in the market is limited and attempts at the privatisation of state-owned enterprises have been met with strong opposition. The country's power sector consists of one generating company, one transmission firm and four regional distributors.
Electric Power Plants
The OJSC, Electric Power Plants, holds and runs the most power plants in Kyrgyzstan, generating up to 99% of the country's electricity. The company holds significant hydropower capacity and is currently receiving support from the Asian Development Bank in order to rehabilitate ageing capacity, as all large hydropower plants in the country were constructed during the Soviet era.
The National Electricity Grid Of Kyrgyzstan
The National Electricity Grid of Kyrgyzstan (NEGK) joint stock company controls the country's transmission system. It was created as the former electricity sector monopoly of Kyrgyzsenergo was split into separate stock companies in year 2000, with each company performing different functions. These functions include:
- Running power plants
- Electricity distribution
- Electricity transmission
- Operating the heat network
NEGK, as such, runs Kyrgyzstan's electricity transmission network. In October 2015, the company unveiled a new electricity transmission line that connects north-eastern Kyrgyzstan with south-western parts of the country. As transmission has previously been contingent on transits through Uzbekistan, the new transmission line will reportedly save Kyrgyzstan USD8-9mn annually in transit fees.
The distribution of electricity in Kyrgyzstan is the responsibility of four regional OJSCs, namely Severelectro, Vostokelectro, Oshelectro and Jalalabadelectro. No competition exists between the distribution OJSCs, as each operates within its own region with no territorial overlapping. There are small, private electricity distribution companies operating in Kyrgyzstan, but these companies typically operate on smaller voltage lines and are not a sufficient alternative to the state-owned distributors. Since 2010, the Kyrgyz government has emphasised maintaining state control over these companies in a bid to improve management efficiency and reduce corruption.