The European Bank for Reconstruction and Development (EBRD) is increasing the energy security of Bishkek, the capital of the Kyrgyz Republic, and the climate resilience of the national energy system by making the largest investment in the country's hydroelectric sector in the last 20 years.
Chakan GES, the state-owned hydropower operator of nine small hydroelectric power plants (HEPPs), will receive a financial package of €8,8 million consisting of a €5 million EBRD government loan and €13,8 million investment grant. The money will help finance the rehabilitation and modernization of Lebedinovskaya HEPP with an installed capacity of 7,6 MW.
Commissioned in 1943-48, the Lebedinovskaya HEPP powers Bishkek, but its equipment is old, inefficient and urgently needs replacement. The proposed improvements in efficiency will increase annual electricity generation by 56 percent to 50.300 MWh. New efficiency and safety measures will help the HEPP increase its resilience to climate change and adapt to changing water flow levels.
Fully aligned with the Paris Agreement in 2022, the Bank helps the Kyrgyz Republic plan its green transition. The project will promote the sustainable use of water, which is important in a country badly affected by climate change. It will contribute to national efforts to address the long-standing operational problems of the country's aged and inefficient HEPP infrastructure.
Technical cooperation financing from Austria under the High Impact Partnership on Climate Action (HIPCA) will complement the Bank's investment and support for Chakan GES in the management and implementation of the rehabilitation project.
To date, the EBRD has invested €219 million through 881 projects in the Kyrgyz Republic, most of which will support private entrepreneurship.