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    Kyrgyzstan Power Competitive Landscape


    January 21, 2022 - Fitch Solutions Sector Intelligence

     

      THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data are solely derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.

      Kyrgyzstan Power Competitive Landscape

      • 21 Jan 2022
      • Kyrgyzstan
      • Power

      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.

      Electricity Distribution

      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.

      This report from Fitch Solutions Country Risk & Industry Research is a product of Fitch Solutions Group Ltd, UK Company registration number 08789939 ('FSG'). FSG is an affiliate of Fitch Ratings Inc. ('Fitch Ratings'). FSG is solely responsible for the content of this report, without any input from Fitch Ratings.

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