Energy Sector Market

The market of energy sector in Tajikistan is represented by the only producer and seller of electric power. The State Stock Holding Company “Barqi Tojik” is the energy monopolist in the country and it deals with maintenance of electric power stations and networks, manufacturing, transmission, distribution and selling of electric and heat power. The SSHC “Barqi Tojik” comprises 24 stock electric power entities, 10 of which serve as distribution companies,13 of them serve as hydro power stations.

Electricity Generation by Fuel Category

The overall electricity generation rate in Tajikistan was 16.1 billion kilowatt per hour in 2009, which is equivalent to the generated rate in the previous year and 6.9 % lower that it was in 2007. The significant share of the electric power generation in Tajikistan in 2009 belonged to the hydropower plants (HPP) which produced 15.8 billion kilowatt per hour, i.e.7.2 % less than the generation rate in 2007. Heat stations for the same period produced only 0.3 billion kWt/h, which is a 33 % increase compared to the 2007 rate. The major problem faced by Tajikistan related to instability in electric power production remains: in summer there is a surplus, and in fall and winter period – there is a deficiency up to 2-2 billion kWt/h

Table 1

Electricity Generation in Tajikistan

g21
* Source: State Statistical Committee of the Republic of Tajikistan

 

Figure 1

Electricity Generation Dynamics for 2000—2009

g22
* Source: State Statistical Committee of the Republic of Tajikistan

 

The considerable volume of electricity in Tajikistan is produced by HPP, around 90%, its full cost substantially lower compared to other power sources. At the same time, 80% of energy resources are imported, including up to 59% of coal and 98 % of gas and oil products, in this regard their prime cost is much higher than the home-generated electricity.

Figure 2

Electricity Generation Dynamics for 2000—2009

g23
* Source: State Statistical Committee of the Republic of Tajikistan

Electricity Consumption

According to the State Statistical Committee of the RT, the electricity consumption rate in 2009 was 16.2 billion kilowatt per hour, which is 4.8 % lower than the consumption rate in 2008.

Figure 3

Dynamics of Electricity Generation and Consumption Rates for 2000—2009

g24
* Source: State Statistical Committee of the Republic of Tajikistan

The primary electricity consumer is the industrial sector — almost half of useful sales of electricity. In 2009 the industrial sector consumed 45.88 % of the total electricity generated, which is 0.3 billion kilowatt per hour (3.12 %) less compared to the previous year. The second large consumer is agricultural sector, which for the same period of time consumed 3.1 billion kilowatt per hour, i.e. 4.3 % less than in 2007

Figure 4

2009 In-country Electricity Consumption by Sectors

g25
* Source: State Statistical Committee of the Republic of Tajikistan

During the post independence period the electricity consumption tendency has changed among the consumers range in Tajikistan, but the overall consumption rate remains unchanged. The below-mentioned table shows the electricity consumption in industrial sector increased from 2000 till 2007, and starting from 2007 to present the electricity consumption decreased among industrial and agricultural establishments with synchronous growth in household, social & cultural and nonindustrial sectors of the economy.

Table 2

Electricity Consumption by Sectors

g26
* Source: State Statistical Committee of the Republic of Tajikistan, www.stat.tj

At the same time the low electricity tariffs compared to other energy resources (coal, black oil, natural gas) with their prices varied according to the world tendencies, has changed the consumption structure (consumption by the population has increased). During the water-short period, the export of electric power has decreased and there were difficulties in electric power supply of consumers, resulting in 2008-2009 to compulsory restriction of power supply of enterprises and population.

 

Electricity Tariffs

The electricity fees in Tajikistan increase to 25% a year in average; these increases are justified by the implementation of the Program on Strategic Reforms in Energy Sector and Support the Development of National Economy, which was developed with the support of international financial institutions.

The present tariffs for residents make 9 dirams -1.8 USD cents per kilowatt per hour (including VAT). The electricity tariff for the Tajik Aluminum Company (ТАLKO) starting from the new year make 8.2 dirams -1.7 USD cents per kilowatt per hour, for the rest industrial and nonindustrial consumers — 21.3 dirams -4.4 USD cents per kilowatt per hour, for other government-owned and state-budget organizations and communal sector — 8.5 dirams, for pump stations and electric transportation — 5.7 dirams (3.64 dirams).

Figure 5

Electricity Tariffs for 2007—2011

g27
* Source: Price list of the SSHC «Barqi Tojik» for 2007-2010; Tariffs for 2011 are a forecast

Figure 6

Electricity Tariffs in Other Neighboring Countries

g28
* Source: Media Review

 

External Trade

Tajikistan maintains electricity import and export relations with the neighboring countries, like Uzbekistan, Turkmenistan, Kazakhstan, Kyrgyzstan and Afghanistan.

Table 3

Electricity Generation, Import and Export, billion kilowatts per hour

g29
* Source: State Statistical Committee of the Republic of Tajikistan

According to the State Statistical Committee of the RТ the electric power exporting in monetary equivalent was 63.5 million USD in 2009, while the importing was for the amount of 76.5 million USD. Tajikistan has considerably reduced importing of electricity and natural gas from Uzbekistan.

The below diagram on Dynamics of Electricity Importing and Exporting demonstrates the Tajikistan’s abrupt reduction in electricity importing and exporting. The impact factors of reduction were first of all due to HPP “Sangtuda-1” launched operations, the final ad complete disconnection of the Tajik power supply system from the Central Asian electric power system, and also tensions in political relations between Uzbekistan and Tajikistan. Small energy exporting was provided to Afghanistan. Electricity was exported by the HPP «Sangtuda-1». It is worth to mention that HPP “Sangtuda-1” sells the electric power generated by SSHC «Barqi Tojik».

According to the Ministry of Energy and Industry of Tajikistan, before Uzbekistan’s disaffiliation (later reentering the organization) with the United Central Asian Energy System, there was an agreement signed between Tajikistan and Uzbekistan to provide electricity transmission exchanges in summer and fall-winter seasons. Based on the signed agreement Uzbekistan received 900 million kWh of the Tajik electric power in summer, and in winter Uzbekistan supplied Tajikistan with 600 million kWh electricity. Though such partnership was not of benefit for Tajikistan, the country has no other access to electric power networks of neighboring countries to export and import electricity.

 

Figure 7

Dynamics of Electricity Import and Export by Years, billion kWh

g210
* Source: State Statistical Committee of the Republic of Tajikistan, www.stat.tj

CONTRIBUTION OF INTERNATIONAL ORGANIZATIONS TO THE ENERGY SECTOR DEVELOPMENT

Actual amount of funding available on behalf of the Government of the Republic of Tajikistan, SSHC «Barqi Tojik» and international financial institutions to implement investment projects within the framework of the Strategy on Development and Rehabilitation of Energy Supply System of Republic Tajikistan for the past period was 700.6 million USD, including:

 

Chart 1

Actual Funding Available for Investments Projects on 2000-2010

g211
Source: SSHC «Barqi Tojik»

Chart 2

Actual Funding Available for Small HPP Investment Projects during 2000 -2010

g212
Source: SSHC «Barqi Tojik»

The below following figure (Figure 8) shows the key players and major funding institutions, such as Asian Development Bank, Aga Khan Foundation, UNDP and Islamic Development Bank. It should be mentioned that IDB and ADB implemented projects based on the Credit Agreement signed between the Government of the Republic of Tajikistan and the above-mentioned banks. In accordance with this Agreement SSHC «Barqi Tojik» received an IDB loan at the total amount of 11.6 million USD and constructed sHPPs with the total capacity of 7925 kWt. At the same time it is worth to state that among sHPP producers the share of the SC «Pamir Energy» makes 71% or 43720 kWt from the total power generated. The share of the SSHC «Barqi Tojik» (ADB and IDB) was 24.5% or 14799 kWt.

Figure 8

Contribution of Producers and Financial Institutions to sHPP Electric Power Generation

g213
Source: SSHC «Barqi Tojik» Database Analysis for 2010

The SSHC «Barqi Tojik» has 25 sHPPs with generation of 592 kWhelectricity in average, while the SC «Pamir Energy» owns 13 sHPPs with average generation of 3362 kWt/h, the mean generation rate throughout the sHPPs in Tajikistan is 1.2 MWt, which is a 50% increase in mean electricity generation compared to 1978.

Chart 3

2010 Average Annual Rate for Generation of Electricity at Small Hydropower Plants

g214

According to the State Statistical Committee of Tajikistan the energy sector has the most investments among other sectors of the economy. From the beginning of the current year more than 500.1 million somoni was spent on construction of electric power facilities. Major funding was allocated to the construction of Sangtuda HPP-1 and HPP-2, and also Rogun hydropower plant.

Chart 4

Dynamics of Annual Investments in Energy Sector of Tajikistan

g215
Source: SSHC «Barqi Tojik» data for 2010

Table 4

Dynamics of Annual Investments in Energy Sector

g216

 

According to the Statistics Agency under the President of RТ in January-May, 2010 there were 8 small HPPs constructed and over 2 million US dollars were expended. Due to the lack of data on investments in certain periods, it is impossible to show dynamics by years. Below following Figure 9 shows the volume of external investments into the energy sector for the last 10 years.

Figure 9

Foreign Investments into Energy Sector

g217
Source: SSHC «Barqi Tojik» Database Analysis for 2000-2010