How Chinese investment is driving Central Asia’s green energy boom
The Belt and Road Initiative, with its massive investments in wind, solar and nuclear power, is quietly reshaping the region’s energy future
When President Xi Jinping announced the launch of the Belt and Road Initiative (BRI) in 2013, the sprawling network of new railways and highways branching out from China across Eurasia was just imaginary lines on a map. This year, the total volume of China’s BRI investments reached US$1.3 trillion, with a 257 per cent spike in Central Asia compared to last year, and many of those lines are no longer imaginary.
The five Central Asian states of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan constitute a vital node on this “New Silk Road”. But while much of the world’s attention is on China’s investments in transport and logistical undertakings in the region, Beijing has also been growing its investments in green energy projects.
This shift is primarily driven by domestic necessity in Central Asia. There, governments face severe energy supply shortages and mounting ecological challenges. That is why by 2030, Kazakhstan and Uzbekistan aim to increase the share of electricity generated from renewables to 15 per cent and 50 per cent respectively. According to the International Energy Agency, in 2023, 49 per cent of Kazakhstan’s energy supply came from coal and 79 per cent of Uzbekistan’s from natural gas. In both cases, renewables accounted for around just 2 per cent.
Across Central Asia, public trust is closely tied to the reliable delivery of basic services. Water shortages, winter blackouts and natural disasters therefore carry more than just environmental consequences, according to Dr Akbota Karibayeva Meyer, a Washington-based Central Asia analyst. The threat of such disruptions has helped move the green agenda from “symbolic gesture to genuine priority” and spurred demand for outside capital, including China’s.
According to the Center for International Private Enterprise, over the period of 2003-2024, Beijing’s cumulative investments in Central Asia reached US$44.4 billion. Though short of the US$50.6 billion the US invested in the region, China supported 175 projects compared to 135 by American firms.