Expanding cooperation between China and Central Asia on green energy fits with Beijing’s own plans to make more sustainable investments that are environmentally conscious. “Greener” version of the Belt and Road Initiative. Changes in China happened in 2021. emphasis moved Invest in solar and wind energy projects. Overall, the Chinese government hopes to alleviate concerns about debt financing among Central Asian countries.
China’s changing preferences in Central Asia demonstrate the adaptability of this initiative in the face of local demands and political factors. For example, Chinese companies in Kazakhstan supported the development of eight wind and solar power projects from 2018 to 2022. Their main achievements are the result of cooperation between countries in green energy. In contrast, in Uzbekistan, China invests through tenders and auctions.
The two Central Asian countries signed agreements on green energy cooperation with China, Kazakhstan in 2015, and Uzbekistan in 2022. The latter agreement evolved into an interstate cooperation agreement signed in 2023. Both countries have also made significant progress on the regulatory front. Competition in tenders related to green energy will be fairer. For both, China serves as an important investment partner.
Astana and Tashkent may also consider increasing engagement with China’s experience in green energy as an effective way to reconsider some aspects of their energy policies. Relations with Russia. Since Russia’s invasion of Ukraine began in February 2022, the Russian government has encouraged the two Central Asian countries to create a gas alliance that would only increase imports of Russian gas. Meanwhile, Uzbekistan and Kazakhstan are trying to reduce this unpleasant dependence.
In the latest manifestation of growing engagement in green energy between China and Central Asia, Uzbekistan President Shavkat Mirziyoyev’s meeting discussed expanding cooperation and China’s support for Uzbekistan’s green development. . Visit to China In January.
At that time, the Uzbek President’s Office emphasized that Chinese investment in the country’s economy had increased fivefold. Mirziyoyev said at an international investment forum earlier this month that the country is working on 28 energy sector projects with the goal of creating more than 20 gigawatts of renewable energy capacity by 2030. This follows on from agreements signed during the first year. China-Central Asia Summit In Xi’an in May 2023.
Visible progress has been made in the development of solar power plants by China’s Gezhoupo Group in the Bukhara and Qashkadarya regions of Uzbekistan, each with a power generation capacity of 500 MW. Some of these projects are already operational.
President Xi Jinping and Uzbekistan President Shavkat Mirziyoyev at the Great Hall of the People in Beijing on January 24.Photo: Xinhua News Agency
Demonstrating the Chinese government’s commitment to sustainable investment in Uzbekistan, Mirziyoyev explored the possibility of establishing a local branch of the Export-Import Bank of China in Tashkent. In addition, the Samarkand regional government purchased 100 units. electric bus It comes from Chinese manufacturer Yutong and has an expected cost of about $62 million.
For Uzbekistan, these agreements will lead not only to investments in green energy, but also to reducing dependence on fossil fuel-based technologies. During his visit to China, Mirziyoyev toured automaker BYD’s headquarters in Shenzhen. He also took part in an online ceremony marking the construction of a new facility in Uzbekistan’s Jizakh region that will produce approximately 50,000 hybrid and electric vehicles per year.
The partnership between BYD and Uzbekistan’s state-owned automobile manufacturer UzAuto has been progressing since October 2023, when the two signed an initial investment agreement with the Ministry of Investment, Industry and Trade of Uzbekistan.These cars are expected to be exported to the Central Asian market and russiaThe latter is particularly attractive due to increased demand following the invasion of Ukraine and subsequent Western sanctions.
Central Asia is gaining strategic importance for China amid the following geopolitical changes. red sea crisis. Disruptions to maritime trade routes have led China to seek alternative trade routes. Expanding investment in green energy is a powerful tool to strengthen China’s role in inland regions.
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Chinese President Xi Jinping arrives in Kazakhstan on first overseas trip since pandemic outbreak
Chinese President Xi Jinping arrives in Kazakhstan on first overseas trip since pandemic outbreak
China’s increased involvement in green energy also coincides with its strengthening of its presence in Central Asia, a move evident through increased bilateral trade with the region. During Mirziyoyev’s visit to China, the two countries elevated their bilateral relationship to an “all-weather” comprehensive strategic partnership, aiming to expand annual trade to US$20 billion.
However, due to the nature of their economies, Central Asian countries are unlikely to fully transition away from fossil fuels, making it somewhat impossible. Uzbekistan, for example, remains heavily dependent on fossil fuels for more than 90 percent of its electricity generation.
moreover, investment from china shows promise, but Central Asian countries have experienced challenges with previous projects, demonstrating the need for diverse partnerships and Western expertise in the transition to renewable energy. Given this situation, Uzbekistan and Kazakhstan are working to attract investment from Gulf countries, the European Union, and the United States in order to avoid dependence on Chinese investment.
Emir Avdaliani is a professor of international relations at European University in Tbilisi, Georgia, and a Silk Road scholar.
