 Energy |
In the last 60 years ago, and being part of one
of the two most powerful states in the world, oriented
at electrification and resources management of the
whole USSR, Kyrgyzstan started to develop and research
the potentials of the country's energy sector.
Being a small state with a favorable geographical
location, Kyrgyzstan always needed detailed research
of natural resources and, in particular, management
of the later. Its independence in 1991, did provided
the country with the opportunity to join the world
market, but with what products? Surrounded by oil-rich
Kazakhstan and gas monopolist Uzbekistan, Kyrgyzstan
has had to particular had to develop a specific
system of utilization and export of energy produced
in the country. Neighboring giants of the Central
Asia's energy markets do play a prevailing role
in sale of gas and oil, however the legacy of the
Soviet Union left a great opportunity for Kyrgyzstan
- transportation of gas from Uzbekistan to Kyrgyzstan.
The constant dependence on the neighboring countries
during the Soviet era and an inefficient system
of distribution of the resources left a useless
gas pipeline on the territory of Kyrgyzstan. This
particular high pressure pipeline, runs from Uzbekistan
to Kyrgyzstan, distributing gas among all regions
of Kyrgyzstan. However, the pipeline was built in
such way, that gas intended for southern regions
of Uzbekistan has to pass through Kyrgyzstan's territory.
Thus Kyrgyzstan is not only buying Uzbekistan's
gas, it charges the later for transportation.
It is significant to outline that there is no gas
and oil in Kyrgyzstan in the quantities that can
be exploit for self-sufficiency and export. The
mining of different metals and coal, also offered
the possibility of exploitation of small quantity
deposits of gas and oil, however it is used in the
process of mining. At present Kyrgyzstan expert
scientists and geologists announced an assumption
of possible existence of oil deposits in the Southern
regions of the country. At present time there is
a Chinese company conducting research process in
Kochkor-Ata. Although this is just an assumption,
necessary research has already started, involving
interested groups of investors from China and Canada.
The existence of oil deposits are very possible,
but detailed exploration will be necessary for several
years for an the assurance of it size and accessibility.
The later can comprise a great challenge, due to
the mountain relief.
Current situation in energy sector of Kyrgyzstan
can be characterized by the high percentage of governmental
control of the resources, and straight policies
on the questions of ownership, privatization, distribution
and utilization. It is explained by the high importance
of energy resources for a small country, which is
in fact can fulfill only transportation services
demanded by neighboring states that with poor infrastructure
they currently posses it is impossible. " The
Kyrgyz Republic's location right in the middle of
the transit route from East to West is also a contributing
factor for developing the possibilities and comparative
advantages that investors demand for investing a
certain country or region" says Mr.
Aitmatov, Minister of Foreign Affairs. |
This passage can be
the concrete direction of the gas transportation
services, which can be offered to many surrounding
countries. Although this possibility is very attractive,
the process of modernization of the pipelines is
required. Present infrastructure condition in Kyrgyzstan
is rather drastic, investment in the business of
transportation of resources requires first of all
investment into the repair and modernization of
infrastructure, and basically not only in Kyrgyzstan,
but in Tajikistan as well, primary because the main
market for Central Asia gas right now is viewed
to be in India, Pakistan and Indonesia.
Thus gas transportation is the main priority of
the future development, an existing production of
hydro energy is currently taking one of the leading
positions in energy sector. The government is the
main owner of the sector, it also conducts policy
on division of it into three sectors: production
of energy and thermal energy, transmission of energy,
distribution and selling the product. Hydro energy
provides Kyrgyzstan's sufficiency in electricity
and thermal hitting, however there are much greater
possibilities to export produced energy. High potentials
of mountain water resources and rivers, able to
produce a considerable amount of energy, first of
all can profit the country, if it's oriented on
export. "The export to our neighbor countries
Uzbekistan and Kazakhstan makes from 1 billion kilowatts
to 3 billion. I would say that for such a country
as Kyrgyzstan it is rather a big volume. By using
all the hydropower resources we could export up
to one thousand billion kilowatts per year. And
in this case, it will be like in Kuwait."
Mr. Bakirdin Sartkaziev General Director of JSC
"Kyrgyz National Grid". There are
a vast opportunities in this sector, however interdependence
of the market in Central Asia, makes hydro energy
resources not demanded. An existing market of cheap
gas, oil and fuels from Uzbekistan and Kazakhstan,
make hydropower export expenses too high and not
demanded in immense quantities. However future perspectives,
considering an extensive exploitation of Kyrgyzstan's
hydro energy resources by Kazakhstan and Uzbekistan,
forms opportunity for fair joining to the large
energy market in 5-10 years. Although, this sector
needs an improvement in infrastructure, occurrence
of the international demand in hydro energy and
electricity generated in Kyrgyzstan will require
a vast process of modernization, that has to take
place on the hydropower stations.
There are indeed possibilities for development of
the energy sector in Kyrgyzstan, prior to export
opportunities, as well as sustaining self-sufficiency
in electricity and maybe future extraction of gas
and oil, the main challenge to overcome is to divide
major fields and goals among the Central Asia energy
suppliers. "For a country like the Kyrgyz Republic
one of the primary objectives for its development
should be to utilize all the possibilities that
regional economic cooperation offers. We hope that
collective understanding would prevail so that we
may all achieve our national objectives while promoting
closer ties with each other." Mr.
Aitmatov, Minister of Foreign Affairs. The development
of stable and systematized energy market in Central
Asia can boost not only effectiveness of internal
trade, but improve overall the whole market, concerning
fair competition, cooperation and stable profit
for each Central Asian state. |
