RENEWABLE ENERGY IN CENTRAL ASIA: ECONOMIC OPPORTUNITIES, EMPIRICAL EVIDENCE, AND POLICY PATHWAYS
Abstract
Central Asia possesses one of the world's most underutilized renewable energy endowments: an estimated 5,470 GW of solar potential and 370 GW of wind capacity (OSCE, 2022). Despite a 26.6% expansion of installed renewable capacity to 17.3 GW in 2023 (IRENA, 2024), the region still generates most of its electricity from coal and gas. This paper argues that accelerating the green energy transition is not merely an environmental imperative but a measurable economic opportunity — attracting FDI, diversifying export revenues, creating employment, and reducing fossil fuel subsidies. Drawing on recent data from Kazakhstan and Uzbekistan, where investment commitments exceed USD 35 billion, the paper offers a comparative analysis, identifies structural barriers, and proposes five evidence-based policy recommendations.