Projects

2020 Update of Kyrgyz Power Sector Analysis

Organization: DHInfrastructure

Description

DHInfrastructure wrote a policy note in 2013, evaluating the most important challenges to the energy sector, and recommending how best to address those challenges. DHInfrastructure updated this note in 2017 with data through 2016 and again in 2017 to reflect company-specific and sector data through 2017. The update would inform the evaluation of options for the tariff path 2020-25 considered by the regulator and allow the assessment of the impact on the sector deficit. The update would provide the factual background for the continuation of the tariff reform from 2020 and inform the dialog with government and regulator in terms of reaching the goal of financial stabilization of the sector.

Service Provided

DHInfrastructure updated the policy note, which describes the sector structure and tariffs, provides a deficit forecast under several scenarios, evaluates several tariff plans for reducing the deficit, and explains the financial links between the electricity and heating sectors. DHInfrastructure also updated the underlying financial models for both the electricity and heating sectors to calculate the deficit caused by below-cost-recovery tariffs through 2020 and forecast the deficit under each proposed tariff scenario through 2025.