Shaping Asia’s Infrastructure: Unlocking Central Asia’s solar potential - Liberalising trends in solar development in Kazakhstan and Uzbekistan - Freshfields Risk & Compliance
Published December 01, 2025
Shaping Asia’s Infrastructure: Unlocking Central Asia’s Solar Potential
Central Asia stands on the brink of a renewable energy revolution, particularly in the solar sector, with countries like Kazakhstan and Uzbekistan leading the charge. The liberalization of solar development in these nations is opening doors to significant investment opportunities and technological advancements, paving the way for a sustainable energy future. This article examines the current trends and potential of solar energy in Kazakhstan and Uzbekistan, highlighting the regulatory frameworks and market dynamics influencing their growth.
Kazakhstan’s Solar Landscape
Kazakhstan, the largest landlocked country in the world, boasts a vast expanse of land and an abundance of solar resources. The country receives an average of 300 sunny days per year, making it an ideal candidate for solar energy projects. In recent years, the Kazakh government has recognized the importance of diversifying its energy portfolio and reducing its reliance on fossil fuels. This shift is evident in its commitment to increasing the share of renewable energy in the national energy mix to 30% by 2030.
To facilitate this transition, Kazakhstan has implemented a series of reforms aimed at liberalizing the solar energy sector. In 2013, the country introduced a feed-in tariff (FiT) system, which guarantees fixed payment rates for solar energy producers. This initiative has attracted both domestic and foreign investors, leading to the establishment of several large-scale solar power plants across the country.
As of 2023, Kazakhstan has installed over 1,500 MW of solar capacity, with plans to expand this figure significantly in the coming years. Notable projects include the Saran Solar Power Plant and the Ekibastuz Solar Power Plant, both of which contribute to the country's growing renewable energy landscape. The Kazakh government is also exploring public-private partnerships (PPPs) to further enhance investment in the solar sector.
Uzbekistan’s Solar Potential
Uzbekistan is also making strides in solar energy development, driven by its vast solar potential and a growing demand for electricity. The country receives an average of 3,200 hours of sunshine annually, presenting a significant opportunity for solar energy generation. Similar to Kazakhstan, Uzbekistan has set ambitious renewable energy targets, aiming for 25% of its energy needs to be met by renewable sources by 2030.
The Uzbek government has initiated reforms to attract foreign investment and modernize its energy sector. In 2019, Uzbekistan introduced a new renewable energy law that established a competitive bidding process for solar projects. This approach aims to ensure transparency and efficiency in the development of solar energy facilities, while also driving down costs for consumers.
Since the introduction of this law, several solar projects have been launched across the country. The most notable among these is the 100 MW solar power plant in Nurabad, which was developed in collaboration with foreign investors. The project is part of a larger strategy to enhance the country’s energy security and reduce greenhouse gas emissions.
Regulatory Frameworks and Investment Climate
The regulatory environments in both Kazakhstan and Uzbekistan are evolving to support the growth of the solar sector. In Kazakhstan, the government has established a clear legal framework for renewable energy, including various incentives for investors. This includes tax exemptions, customs duty exemptions, and guarantees for power purchase agreements (PPAs). These measures have contributed to a more attractive investment climate, encouraging both local and international companies to participate in the solar market.
Uzbekistan’s regulatory framework has also seen significant improvements. The government has prioritized the simplification of licensing procedures for renewable energy projects, reducing bureaucratic hurdles that previously hindered development. Additionally, the introduction of competitive bidding has fostered a more dynamic market, allowing for more efficient allocation of resources and encouraging innovation in solar technology.
Challenges and Opportunities
Despite the promising developments in the solar sectors of Kazakhstan and Uzbekistan, challenges remain. One of the primary obstacles is the need for improved grid infrastructure to accommodate the influx of renewable energy. Both countries are investing in modernizing their electrical grids to ensure that solar energy can be efficiently integrated into the existing energy system.
Another challenge is the need for skilled labor in the renewable energy sector. As the solar market expands, there is a growing demand for professionals with expertise in solar technology, project management, and regulatory compliance. Both governments are recognizing the importance of education and training programs to build a skilled workforce capable of supporting the renewable energy transition.
However, the challenges also present opportunities for growth. As Kazakhstan and Uzbekistan continue to liberalize their energy markets, the potential for foreign investment remains high. International companies are increasingly looking to enter these markets, attracted by the favorable regulatory environments and the promise of substantial returns.
International Collaboration and Future Prospects
International collaboration plays a crucial role in the development of solar energy in Central Asia. Both Kazakhstan and Uzbekistan are actively seeking partnerships with foreign investors and technology providers to accelerate their renewable energy ambitions. Initiatives such as the Central Asia Solar Energy Cooperation (CASEC) aim to foster regional collaboration and knowledge sharing in the solar sector.
The future prospects for solar energy in Kazakhstan and Uzbekistan are bright. With the right investments, regulatory frameworks, and international partnerships, both countries have the potential to become leaders in renewable energy in the region. The continued focus on solar energy development not only supports energy independence but also contributes to global efforts to combat climate change.
Conclusion
As Kazakhstan and Uzbekistan unlock their solar potential, they set a precedent for other countries in Central Asia to follow. The liberalizing trends in solar development, combined with supportive regulatory frameworks and international cooperation, create a favorable environment for investment and innovation. The journey toward a sustainable energy future is underway, and the solar sectors in both countries are poised to play a pivotal role in shaping the region's energy landscape.
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