Tajikistan and the EBRD have explored opportunities for power sector funding to support initiatives designed to reduce electricity losses and improve energy efficiency across the country’s electricity network.
The discussions were confirmed in a statement issued by the press service of the Tajik Ministry of Energy and Water Resources after a meeting between minister Daler Juma and EBRD Head of Office in Tajikistan Holger Wiefe.
The ministry stated, “The sides discussed attracting concessional financing for projects aimed at reducing electricity losses and improving the efficiency of the country’s energy system.”
The meeting also addressed broader cooperation in the energy sector alongside the implementation of major infrastructure initiatives that are expected to support the country’s long-term electricity objectives.
EBRD Continues Long-Term Investment in Tajikistan’s Energy Infrastructure
The EBRD has maintained a significant investment presence in Tajikistan since launching operations in the country in 1992. Over that period, the institution has committed more than €1 billion across over 190 projects, with sustainable infrastructure, energy security and private sector development remaining among its principal priorities. Within the energy sector, the bank has supported electricity transmission and distribution upgrades, hydropower rehabilitation, and projects focused on improving the efficiency of the national grid.
In April 2026, the EBRD approved a financing package of nearly €50 million aimed at reducing electricity losses in Tajikistan. The package consists of an EBRD sovereign loan co-financed by a €15 million European Union grant provided through the Asia Pacific Investment Facility. The project is intended to modernize power distribution infrastructure, install modern equipment and improve grid reliability.
In parallel, the bank is preparing the Kulob Distribution Grid Reinforcement project, which builds upon previous investments in Khatlon Region to enhance voltage stability while further reducing technical losses.
As electricity demand continues to rise alongside major hydropower and transmission investments, power sector funding is playing an increasingly important role in supporting network upgrades. Although Tajikistan generates almost all of its electricity from hydropower, the government is prioritizing modernization of aging distribution networks to reduce losses, improve supply reliability and reinforce the national power system in preparation for increased regional electricity trade through projects such as CASA-1000.
