The World Bank renews support for CASA-1000
A story from The Steppe #4
The World Bank has decided to restart support for CASA-1000, a $1.2 billion project to connect the power grids of Kyrgyzstan, Afghanistan, Tajikistan and Pakistan.
The CASA-1000 project, designed to enable the export of hydro power-generated electricity, aims to both reduce costs for consumers and help drive the clean energy transition. Tajikistan is expected to provide 70% of the power, with the remainder supplied by Kyrgyzstan. With construction nearing completion in Kyrgyzstan, Pakistan, and Tajikistan, developers have said funding should be resumed for the critical Afghanistan section of the project, which will connect Pakistan with the remaining participants, to prevent the whole scheme from becoming a stranded asset.
CASA-1000 aims to trade 1,300 megawatts of surplus hydropower between the participating countries, enhancing regional energy interconnectivity and sustainability. The Afghan segment will be implemented with ring-fenced measures to manage revenues independently of government administration systems.
The project highlights the growing importance of renewable energy sources, such as hydropower, which offers new business opportunities and is supported by mechanisms like feed-in tariffs.
However, challenges loom over the completion of vital projects like Tajikistan's Roghun hydropower plant and Kyrgyzstan's Kambarata HPP-1, with escalating costs and the need for international support. Nonetheless, the World Bank's endorsement marks a significant stride in the region's commitment to energy cooperation.