Advancing renewable energy in the Kyrgyz Republic—delivering strategic advisory for the development of a sustainable sector

Reliable and affordable energy is essential for economic development, improving living standards, and social inclusion. In the Kyrgyz Republic, energy also holds strategic importance as a potential export commodity and contribute to economic diversification and regional integration. Despite universal access to electricity, the sector remains underutilised due to ageing infrastructure and financial instability.

Recognising the urgent need to diversify its energy sources, the Kyrgyz Republic’s government faced several challenges. These included an underdeveloped regulatory framework, limited access to finance, and a lack of incentives for foreign investment. Creating an environment where renewable energy projects could thrive—supported by clear policies and strong financial guarantees—became a national priority. This was critical not only for advancing clean energy but also for broader development goals and climate commitments. 

The Government of the Kyrgyz Republic, recognising the need for action, sought development support from the Foreign, Commonwealth & Development Office (FCDO). Under the FCDO’s Green Cities, Infrastructure and Energy Programme (GCIEP), we were engaged to bring deep industry. 

PwC UK engaged our Eurasian Capital Projects and Infrastructure Team to bring strong regional expertise and a proven track record in delivering complex, multi-stakeholder projects in dynamic policy and investment environments. 

We firstly conducted a comprehensive analysis of the legal and regulatory framework governing renewable energy (RE) projects in the Kyrgyz Republic. This identified key obstacles to the development of a RE sector. 

This included in-depth consultations with all relevant stakeholders, including the Ministry of Energy, Ministry of Finance, OJSC National Electric Grid of the Kyrgyz Republic (JSC NESK), and the Green Energy Fund of the Kyrgyz Republic, to understand institutional perspectives and coordination challenges. 

We also engaged with private investors to better understand their concerns and expectations. These discussions highlighted critical pain points and informed our recommendations on the steps the government should take to improve the investment climate.

Our team was present on the ground in Bishkek, where face-to-face meetings helped build trust, clarify the project’s objectives, and foster a shared vision. We also collaborated with a local legal consulting firm, whose expertise allowed us to tailor our recommendations to the national context and anticipate regulatory hurdles. 

To support informed decision-making, we recommended the development of a robust financial model to simulate various renewable energy growth scenarios and estimate the level of guarantees required.

Our approach laid foundations for transparent, data-driven decision-making. The value of our recommendations was recognised by the FCDO. Our client subsequently engaged us to develop the financial model, serving as an endorsement of both our methodology and our understanding of the local context.

Looking ahead, we’re confident this financial model will become a key driver for the Kyrgyz Republic's renewable energy sector. It provides stakeholders with a clear roadmap and identifies investment risks. Our experience demonstrates the importance of bringing together diverse perspectives, especially in complex, multi-stakeholder environments, to create inclusive solutions.