Overview Central Asia has substantial renewable energy potential, yet most countries in the region have attracted only limited foreign direct investments in renewable energy. Between 2005 and 2025, renewable energy projects tracked by Financial Times fDi Markets remained relatively modest: Kazakhstan ($2.8 billion), Mongolia ($1.3 billion), Kyrgyz Republic ($450 million), Tajikistan ($500 million), and Turkmenistan (below $300 million). Uzbekistan recorded the region’s largest volume of renewable energy investment projects (exceeding $17 billion), primarily in utility-scale solar photovoltaic and wind power. These trends reflect growing efforts to expand green finance and private sector participation in low-carbon infrastructure across Central Asia. However, renewable energy investment across the region remains uneven and concentrated largely in Uzbekistan, particularly in power generation projects led by a relatively small group of major international developers. Strengthening the broader investment ecosystem—including grid infrastructure, regulatory stability, project preparation capacity, and financial frameworks—will be critical for broadening investor participation and diversifying renewable energy technologies across Central Asia. A study, Renewable Energy Investment Ecosystem in Central Asia, assessed renewable energy investment readiness in Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan through a structured analytical framework focused on enabling conditions and implementation capacity. The framework is composed of 15 pillars and 202 elements and uses scorecards to identify each country’s strengths, weaknesses, opportunities, and threats—providing a comprehensive view of the region's renewable energy investment landscape. Uneven Ecosystem Quality The 15 pillars are grouped into three criteria: fundamentals, robustness, and execution and operations. Fundamentals cover government commitment, regulatory framework, market conditions, and investment promotion agencies, while robustness covers resource availability, grid infrastructure, market access, investment protection, and financial environment. Execution and operations include skilled workforce, developers/engineering, procurement, and construction, public-private partnerships, environmental and social factors, technology and innovation, and regional cooperation (Figure 1). Figure 1:Country-Level Indicator Scores Across Key Pillars of the Renewable Energy Investment Ecosystem Source: Author and Renewable Energy Investment Ecosystem in Central Asia report. Country results show an uneven ecosystem quality. The assessment (Figure 2) identified 36 non-compliant elements in Kazakhstan, 132 in Kyrgyzstan, 92 in Tajikistan, 117 in Turkmenistan, and 70 in Uzbekistan. The estimated “additional score needed” to reach full compliance is 15.52 (Kazakhstan), 31.23 (Kyrgyzstan), 42.29 (Tajikistan), 40.04 (Turkmenistan), and 53.94 (Uzbekistan). Figure 2: Country-level Total Scores and Adherence to Renewable Energy Investment Ecosystem Source: Author and Renewable Energy Investment Ecosystem in Central Asia report. Kazakhstan leads the region with only 36 non-compliant elements, reflecting a solid regulatory framework and strong government commitment. KAZAKH INVEST operates as a one-stop shop, supporting project identification, partner search, site selection, and aftercare through regional and international offices. Its primary weakness is a historical focus on extractive industries, which limits its depth of expertise in renewable energy investments. Grid integration and regulatory complexity remain the main technical barriers to scaling up. Uzbekistan ranks second with 70 non-compliant elements, backed by ambitious renewable energy targets and growing investment activity. The Uzbekistan Investment Promotion Agency functions as a one-stop shop offering project development assistance, information services, and aftercare. However, capacity constraints, limited mandate, bureaucratic procedures, and weak coordination with other government bodies continue to slow investment conversion. Grid integration challenges and regulatory inconsistencies remain the most pressing structural barriers. Tajikistan holds substantial hydropower potential but ranks third in ecosystem deficiencies with 92 non-compliant elements. TAJINVEST serves as the primary investment promotion agency, offering registration assistance and facilitating government communication, but the country lacks a specialized renewable energy investment body and does not provide comprehensive support across the full investment lifecycle. Economic instability and significant regulatory gaps remain key deterrents. Turkmenistan has high solar and wind potential but ranks second lowest in ecosystem readiness with 117 non-compliant elements. It is the only country in the region without a dedicated investment promotion agency. Investment activities are managed through the Ministry of Finance and Economy, with a heavily centralized approach historically focused on oil and gas. Investment procedures and opportunities remain largely inaccessible to foreign investors. Kyrgyz Republic has a strong hydropower foundation but carries the highest number of non-compliant elements in the region at 132, signaling broad and systemic ecosystem weaknesses. The National Investment Agency provides legal and regulatory assistance, but a decentralized investment structure involving multiple government bodies creates overlapping roles and unclear guidance for investors. Limited experience with large-scale FDI further compounds these challenges. Across Central Asia, several gaps appear repeatedly. Grid infrastructure and integration capacity are not ready to absorb variable renewables at scale, which delays or blocks projects even when the commercial case is strong. The financial environment remains weak, especially for long-term funding, risk mitigation instruments, and bankable contracting. Execution capacity is uneven, with shortages in experienced developers, engineering, procurement, and construction capability, skilled labor, and coordination across public institutions. In addition, investment protection and regulatory predictability remain inconsistent in several markets, raising the cost of capital and reducing investor confidence. Moving Forward The study calls for a decisive shift from analysis to delivery through a structured Investment Promotion Program (Figure 3). The shift is now underway. Building on the study's findings, the CAREC Institute, Islamic Development Bank, and the Uzbekistan Investment Promotion Agency have jointly developed and approved an operational program to advance investment promotion for renewable energy and selected manufacturing sector in Uzbekistan. Figure 3: Execution of Investment Promotion Program Source: Author and Renewable Energy Investment Ecosystem in Central Asia report. Uzbekistan is the chosen pilot country. It ranks second in the region for overall ecosystem readiness and its reform momentum is real, but strong momentum does not automatically convert into signed investments. The persistent gap between investor interest and project launch points to a structural weakness in facilitation capacity. The program addresses this directly. It focuses on building a credible project pipeline, applying consistent project screening, and enabling investor-developer matchmaking. These actions are supported by stronger market intelligence, improved IPA capacity, clear key performance indicators, and active risk management. The proposed implementation horizon is 18 months, combining targeted outreach, capacity building, and sustained aftercare. The program also keeps non-pilot countries engaged through knowledge sharing, technical assistance, and a regional forum that improves visibility of bankable opportunities. Renewable energy investment ecosystems must be improved as connected systems, not as isolated reforms. Targets and incentives matter, but they will not deliver investment if grid constraints, financing barriers, and delivery capacity remain unresolved. The framework helps governments and partners identify high-impact reforms and align institutions around investor requirements. [1] The 11 CAREC member countries are Afghanistan, Azerbaijan, People's Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Resources A. Razzaq and A. Dyrseth. 2025. Renewable Energy Investment Ecosystem in Central Asia. CAREC Institute, Islamic Development Bank, and Islamic Centre for Development of Trade. Ask the Experts Asif Razzaq Senior Research Specialist, CAREC Institute Asif Razzaq researches investment ecosystems, energy transition, digitalization, and climate change, leading several projects across CAREC countries. He has published reports and papers in reputable journals and policy report, earning more than 13,000 citations. Recognized among the world’s top 2% researchers by Stanford University and Elsevier in 2023–2025, he is a highly cited Chinese researcher. He has worked in the banking sector, focusing on SME financing. He holds a PhD in Economic System Analysis and Management from Dalian University of Technology, People's Republic of China. Central Asia Regional Economic Cooperation Institute (CAREC) The Central Asia Regional Economic Cooperation Institute (CAREC) is an intergovernmental organization promoting economic cooperation in Central Asia and along the ancient Silk Road through knowledge generation and sharing. CAREC is jointly shared, owned, and governed by 11 member countries: Afghanistan, Azerbaijan, People’s Republic of China, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. Leave your question or comment in the section below: View the discussion thread.