Power policy

Tajikistan submitted a renewable energy target in 2020 calling for wider use of solar, wind, biomass, small hydro, and geothermal sources, particularly for remote areas of the country. The country in 2009 passed the long-term plan for building small hydropower plants for 2009-2020, which targeted 103 megawatts by 2020. It hit these goals, with 170 megawatts from small hydropower and generates a total of 418 gigawatt-hours, and renewables made up 3% of the energy mix. There have also been talks about implementing a feed-in tariff in the next few years in order to enhance the commercial viability of small hydropower in Tajikistan.

Renewable energy investors are also granted tax exemptions in the country. Tajikistan aims to have 10% of electricity come from renewable energy sources, excluding large hydro, by 2030.

Power prices and costs

Similar to most former Soviet Union countries, Tajikistan offers low power prices due to government subsidies. The government has slightly adjusted rates in recent years in an effort to improve the financial health of its main energy company, Barqi Tojik, but not all tariffs have increased.

Tajikistan has not seen any serious investment in renewable energy, with the last deal dating back to 2015. The government has called for the construction of small hydro plants and other sources of clean power, but no renewables capacity aside from small hydro has come online. The Asian Development Bank approved a $10 million grant in 2013 to support household uptake of clean energy, while Pamir Energy, a public-private partnership company, is investing in small hydro projects in rural regions of Tajikistan.

Power market

Barqi Tojik, a vertically integrated state-owned utility, dominates Tajikistan’s power sector. Despite its strong market position, the utility is in poor financial health due to low subsidized tariffs, losses on transmission and distribution services, and poor collection rates. The government has granted Pamir Energy authority to generate power, provide transmission and distribution infrastructure and sell to retail consumers in one remote region, but Barqi Tojik acts as the utility for more than 95% of the country’s population. Industrial players consume most of Tajikistan’s power.

Doing business and barriers

Peak power demand has increased moderately in recent years. Despite its near 100% electrification rate, Tajikistan suffers from power reliability issues due to its dependence on large hydropower plants, most of which are operating beyond their intended service lifespan.

There are numerous barriers to renewable energy development in Tajikistan, and market growth beyond the government’s goals remains unlikely. While some policies have been introduced to support the renewables industry, the country does not have a feed-in tariff or auctions program. In addition to Tajikistan’s isolation, there are other barriers such as the high cost of credit and the lack of interest from foreign developers.

EV market

The government has yet to implement any substantial policy support in this sector and the electric vehicle market remains at an early stage.

EV policy

The new Tax Code, which came into effect on January 1, 2022, reduced the standard value-added tax rate from 18% to 15% to promote cashless payment in transactions. The Ministry of Transport has also developed a draft program for the development of electric transport that aims to completely waive taxes and customs duties on imports of EVs, including electric cars, electric buses, and trolleybuses.

Buildings market

The government has yet to implement any substantial policy support in this sector and the market remains at an early stage.

Buildings policy

There are no specific laws.