China has significantly increased its involvement in renewable energy projects in Central Asia, particularly in Kazakhstan and Uzbekistan, since 2018.
This shift aligns with the growing interest in renewable energy in both countries due to concerns about energy insecurity, environmental pollution, and pressure from Russia to import more gas. China’s approach to renewable energy collaboration differs between Kazakhstan and Uzbekistan, reflecting adaptable strategies within Central Asia.
In Kazakhstan, Chinese companies have mainly focused on wind and solar power projects, participating as project developers, engineering, procurement, and construction (EPC) contractors, and suppliers. They have aligned with Kazakhstan’s localization demands by considering the production of renewable energy equipment locally.
On the other hand, in Uzbekistan, Chinese involvement has been driven by the launch of renewable energy tenders since 2019. While Chinese companies have not won many contracts, they have participated actively, mainly as EPC contractors or suppliers. Direct negotiations have also become common, with Chinese companies exploring the potential for renewable energy projects through agreements with the Uzbek Ministry of Energy.
China’s increasing influence in renewable energy projects in Central Asia presents opportunities for accelerating the green transition and enhancing energy independence in Kazakhstan and Uzbekistan. However, it also raises concerns about potential dependence on Chinese technology and standards, limiting competition and broader stakeholder involvement in the region’s renewable energy sector.
Source
Green New Wave: How China Adapts to Central Asia’s Renewable Energy Landscape, Carnegie Endowment for International Peace, 2024-04-21
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