Central Asia Gets $2B for Solar Power and Green Growth

Five nations in Central Asia and Mongolia are transforming their energy future with the biggest clean development funding package they've seen in more than ten years. The European Bank for Reconstruction and Development invested nearly $2 billion across 120 projects in 2025, with over half going directly to renewable energy.

Uzbekistan led the charge, securing more than $1 billion for the sixth year running. The country is now building Central Asia's largest solar plant, combining a massive 1 gigawatt photovoltaic system with battery storage that could power hundreds of thousands of homes.

Kazakhstan received $440 million, Mongolia got $218 million, while the Kyrgyz Republic and Tajikistan shared another $312 million. Each country is using the funds to replace outdated systems with cleaner alternatives.

In Tajikistan, a hydropower plant upgrade now supplies reliable electricity to 500,000 people in Sughd province. The Qairokkum facility increased its capacity from 126 to 174 megawatts, all from renewable water power.

Uzbekistan is modernizing 110 irrigation pumping stations across ten regions with energy efficient equipment. The upgrade will slash electricity use by 251,000 megawatt hours annually and eliminate 117,000 tons of carbon emissions every year.

Kazakhstan's Aktau port is expanding its cargo capacity with joint European Union funding. The port serves as a crucial gateway on the Caspian Sea and connects trade routes between Europe and Asia.

The Ripple Effect

The investment isn't just about big infrastructure. More than 4,600 small and medium businesses received training, mentoring, and direct financial support throughout 2025.

In Mongolia, nearly three quarters of business loans went specifically to companies led by women and young entrepreneurs. Kazakhstan banks received $60 million dedicated exclusively to businesses owned by women and youth.

Local banks across the region are channeling funds to entrepreneurs focused on climate solutions. One Uzbek banking partnership alone generated $125 million for small green businesses.

The Kyrgyz city of Osh joined the Green Cities program with plans for cleaner water treatment and electric public transport. Mongolia's capital Ulaanbaatar is building a specialized cardiovascular hospital as part of its sustainability action plan.

Sixty eight percent of all loans went to private businesses rather than government projects, ensuring entrepreneurs drive the green transition. The region is proving that developing economies can leap forward with clean technology from the start.