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Kyrgyzstan

 
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Kyrgyzstan

Energy

Unlike its neighbors Kazakstan and Uzbekistan, Kyrgyzstan has no significant exploited reserves of oil or natural gas; in 1994 petroleum production was 88,000 tons, and natural gas production was 39 million cubic meters. Although substantial coal deposits are present, in the mid-1990s experts described Kyrgyzstan's coal industry as in a state of collapse. In the early 1990s, only four of the fourteen state-owned coal mines were considered economically viable, and little coal came from privately owned mines. Between 1991 and 1993, brown coal production decreased by 50 percent (to 959,000 tons), and black coal production decreased by 53 percent (to 712,000 tons). The domestic price of conventional fuels rose slightly above world levels after the much cheaper energy-sharing arrangements of the Soviet era ended. (In 1992 oil and gas import costs were 50 percent of the total state budget, compared with 10 percent in 1991.) In 1994 some 39 percent of Kyrgyzstan's total import expenditures went for the purchase of conventional fuels, contributing an estimated US$100 million to the country's trade imbalance (see Foreign Trade, this ch.). Energy consumption, meanwhile, has declined sharply since 1991, and experts do not expect it to return to its 1990 level.

Management of national energy and fuel policy is distributed among several ministries and other state agencies--an arrangement that has hindered efficient acquisition and distribution. Distribution of heat and electricity is the responsibility of the state-run Kyrgyzstan National Energy Holding Company, and natural gas purchases are managed by the Kyrgyzstan Natural Gas Administration (Kyrgyzgas). Oil, gas, and coal exploration is the responsibility of the State Geological Commission (Goskomgeologiya). Natural gas, provided by the Republic of Turkmenistan in the Soviet era, now comes mainly from neighboring Uzbekistan. Coal, used to heat households and to fuel some thermoelectric plants, is mainly received from Kazakstan in a barter arrangement for electrical power. Kazakstan's coal is preferred because the heaviest demand in Kyrgyzstan is concentrated in the north, and Kyrgyzstan's remaining coal mines are in the south, from which transportation is problematic.

For these reasons, existing thermoelectric stations have been deemphasized in the 1990s in favor of expanded hydroelectric production. Thus, in 1994 thermoelectric power production dropped by 46 percent while hydroelectric production rose by 30 percent. These statistics enabled the national energy sector to show a modest drop of 4 percent in total power generation in 1994, but district heating, which comes from coal- and gas-powered combined heat and power plants, suffered heavily from the transition. Meanwhile, government promotion of electricity brought an increase of 117 percent in household power use between 1991 and 1994, although overall household energy consumption declined by 36 percent during that period. Some aspects of the promotion plan have been criticized, including the large-scale promotion of electric heat in a country with poorly insulated houses.

Emphasis on electricity is backed by abundant water power, mainly from the country's location at the mountain headwaters of the Syrdariya, one of the two largest rivers in Central Asia. On the Naryn River, chief tributary of the Syrdariya, a series of hydroelectric stations has been built, the largest of which is the Kürp-Say Hydroelectric Plant, fed by the Toktogol Reservoir in central Kyrgyzstan. Other major hydroelectric plants are located at Atabashin, Alamedin, and Uchkorgon. Such stations have made possible the net export of electric power, worth an estimated US$100 million in 1994. That figure was only about half the value of Kyrgyzstan's 1990 export, however, because demand in neighboring republics dropped considerably in the early 1990s. The main customer is Kazakstan, with which power is exchanged through the Central Asian Integrated System.

Only about 10 percent of Kyrgyzstan's hydroelectric power potential and only about 3 percent of the potential of its smaller streams are currently being exploited; the Naryn River is estimated to afford an additional 2,200 megawatts of easily accessible rated capacity. Meanwhile, the Fergana Valley, the only working oil field in the country, has remaining reserves of 14 million tons of oil that require expensive recovery tech-nolgy. No serious oil exploration has been done elsewhere, although the Chu and Ak-Say valleys are believed to be prom-ising.

Data as of March 1996

 

Kyrgyzstan - TABLE OF CONTENTS

  • The Economy
  • Transportation and Telecommunications


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