Uzbekistan and Turkmenistan Drive Eurasian Electricity Demand Growth

Electricity demand across Eurasia increased by 4% in 2024, driven by population growth and economic development. The International Energy Agency (IEA) projects that, excluding Kazakhstan and Russia, electricity demand in Eurasian markets will continue to grow at an average annual rate of 3.7% between 2025 and 2027. 

Uzbekistan’s electricity generation rose by 4.7% in 2024. The country remains predominantly reliant on gas but is actively diversifying its energy mix by investing in renewable energy. The government aims to increase wind and solar power generation capacity to 20 GW by 2030. 

Turkmenistan’s energy sector expanded in 2024, increasing electricity exports to neighboring countries, including Afghanistan, Iran, Kyrgyzstan, and Uzbekistan. Electricity exports to Kyrgyzstan reached 1.6 TWh in 2023, with plans to increase this to between 1.7 and 2 TWh in 2024. An agreement with Uzbekistan aims to ramp up electricity supplies to 4 TWh per year, though specific trade volumes remain undisclosed. 

Azerbaijan experienced a 4% growth in electricity demand in 2024, a significant improvement compared to the previous year. However, the country faced a 3% decline in electricity production, with a notable 10% drop in fossil-fired thermal generation. This decline was offset by a substantial increase in hydropower output. Electricity exports from Azerbaijan saw a sharp decline of nearly 60%. 

The IEA’s outlook indicates that the electricity sector in Eurasia is expanding, with countries like Uzbekistan and Turkmenistan leading the growth.