Turkey’s $10B Energy Play in Kyrgyzstan to Reshape Central Asia

Turkey is set to invest approximately $10 billion in Kyrgyzstan’s energy sector, a landmark deal that promises to transform the Central Asian nation from an electricity importer into a major exporter. The agreement between Kyrgyzstan’s Ministry of Energy and the Turkish-based Orta Asya Investment Holding will fund the construction of the Kazarman and Kokomeren hydropower plant (HPP) cascades, adding over 2200 MW of generating capacity to the country’s grid.

This initiative, the largest in the history of bilateral relations, was launched following a summit of the Organization of Turkic States (OTS) and signals Ankara’s deepening strategic influence in the region. According to Kyrgyz Energy Minister Taalaibek Ibraev, the project involves building six new HPPs that will boost the country’s electricity output by over 50%. This additional 8 billion kWh of power is expected to secure Kyrgyzstan’s energy independence for decades and create a significant surplus for export.

The project carries significant geopolitical weight. A press release from İhlas Holding, the parent company of the investor, noted that the new HPPs will become a crucial part of energy corridors connecting China, Pakistan, Kazakhstan, and Uzbekistan. They are also intended to supply power to major regional initiatives like the Zangezur Corridor, the Middle Corridor, and the Belt and Road Initiative, positioning Kyrgyzstan as a key transit hub and strengthening Central Asia’s energy security.

However, the ambitious plans have raised serious alarms among environmentalists. Critics warn that constructing massive dams in a seismically active, mountainous region poses significant risks. Concerns include the flooding of land, alterations to river hydrology, disruption of fish migration routes, and potential impacts on biodiversity and the local microclimate. Environmental groups are calling for comprehensive and independent ecological assessments and broad public dialogue before construction begins to fully evaluate the long-term consequences.

To facilitate the project, Turkey has already forgiven a $58.9 million debt owed by Kyrgyzstan. The investor, Orta Asya Investment Holding, which was specifically established for this purpose, has guaranteed state energy purchases for 20 years and has partnered with PowerChina International Group and Kazakhstan’s SemArco LLP for the project’s implementation. The construction is expected to be completed within six years.

Beyond the energy infrastructure, İhlas Holding has committed to significant social investments. These include funding the education of 1,000 orphans for five years, providing a portion of the generated electricity to the local population for free, establishing a professional training academy, and equipping a neonatal department with modern medical equipment. This comprehensive approach underscores the strategic nature of the partnership, which extends into agriculture and defense, as Turkey vies with Russia and China for greater influence in the region.