BAKU, Azerbaijan, January 7. Cooperation
between the European Union (EU) and Tajikistan in the field of
renewable energy (RE) is entering a new phase in 2026. While
previous interactions mainly involved technical assistance and
advisory support, the focus now is on large-scale investments,
institutional reforms, and integrating energy priorities into a
broader economic and digital dialogue under the EU’s Global Gateway
strategy.

Tajikistan, which possesses one of the largest hydropower
potentials in Central Asia, holds a special place in the EU’s
regional strategy. As a European Commission representative told
Trend in an
exclusive interview, Brussels’ priorities in the country are
clearly structured.

“The EU’s Global Gateway initiative aims to strengthen
sustainable connectivity and infrastructure worldwide. In Central
Asia, and specifically in Tajikistan, our cooperation focuses on
four priority areas: water/energy/climate, transport, digital
connectivity, and critical raw materials,” the spokesperson
said.

In this context, energy and water resources remain the
foundation of EU–Tajikistan cooperation. The EU is using the Team
Europe format, which pools resources from the European Commission,
the European Investment Bank (EIB), the European Bank for
Reconstruction and Development (EBRD), and national financial
institutions of EU member states.

A key feature of the current stage is the shift from individual
projects to the development of a long-term investment portfolio. In
2025, several flagship projects were launched or modernized.

The Sebzor Hydropower Plant (HPP), commissioned in June 2025,
has a capacity of 11 MW and was implemented with support from the
EU and Germany’s KfW Bank. The project provides electricity to
around 430,000 people in the Gorno-Badakhshan Autonomous Region and
also contributes to cross-border energy supply to Afghanistan.

Equally significant is the modernization of the Kayrakkum HPP,
where capacity increased from 126 MW to 174 MW. As part of a $196
million financing package, the EIB contributed $37 million,
improving power reliability for over 500,000 people.

A central pillar of cooperation is the Rogun HPP, the country’s
largest infrastructure project, with a total capacity of 3,780 MW
and an estimated cost of $6.4 billion. The EIB’s participation in
the donor consortium is seen in Brussels as a contribution to the
project’s sustainable financing, in line with EU environmental and
social standards.

Energy cooperation with Tajikistan is embedded in a broader
regional framework. At the 2025 EU-Central Asia summit, a €12
billion Global Gateway investment package was confirmed, with €6.4
billion allocated to water, energy, and climate projects. Given its
hydropower potential, Tajikistan is considered a key beneficiary of
this part of the program.

At the same time, the SECCA initiative (Sustainable Energy
Connectivity in Central Asia) is being implemented, under which the
EU in 2025 actively funds the development of legal and regulatory
frameworks for solar and wind energy in Tajikistan. This
demonstrates Brussels’ commitment to diversifying Tajikistan’s
energy mix, reducing reliance solely on hydropower.

EU–Tajikistan cooperation in renewable energy extends beyond
electricity generation. Significant funds are allocated to
modernizing distribution networks and reducing technical losses. In
2025, a €43 million package was launched, including a €28 million
EBRD loan and a €15 million EU investment grant. The project
involves deploying smart meters and upgrading infrastructure in
nine cities, including Khatlon and Sughd.

Energy digitalization is complemented by the EU’s broader
digital agenda in the country.

“Regarding digitalization, we are advancing under the dedicated
Team Europe Initiative on Digital Connectivity, beginning with
capacity-building activities. Additionally, we are preparing for
the deployment of satellite ground stations, aimed at improving
digital access in remote areas across the region. Tajikistan has
shown interest in this initiative, and we anticipate that the
country will benefit from this support in the near future,” the
spokesperson emphasized.

From a sustainable development perspective, European involvement
is already delivering measurable results. Sebzor HPP and the
Kayrakkum modernization alone are expected to reduce CO₂ emissions
by around 45,000 tons annually. Through the GEFF mechanism, over
2,000 households and small businesses adopted energy-efficient and
“green” technologies in 2024–2025.

Institutional reforms are also part of the agenda. With EU
advisory support, Tajikistan passed a law in December 2025
exempting solar panel imports from VAT until 2031, aimed at
stimulating private investment in renewable energy.

The anticipated signing of the Agreement on Enhanced Partnership
and Cooperation (AEPC) will further boost cooperation.

“The EU places high value on its partnership with Tajikistan.
Our relationship is set to deepen further with the Enhanced
Partnership and Cooperation Agreement (EPCA). Negotiations
concluded last year, and we now look forward to its signature,” the
representative noted.

The AEPC covers economic development, energy, climate, digital
technologies, and the rule of law, creating a predictable
environment for European investors.

“For the EU, the EPCA reflects our long-term commitment to
Central Asia and to Tajikistan in particular. A predictable and
transparent business environment is essential for attracting
European investors, fostering innovation, and enabling sustainable
growth. The EPCA will play a key role in strengthening these
conditions and supporting mutually beneficial economic
cooperation,” the spokesperson stressed.

To date, the EU is Tajikistan’s second-largest financial partner
in the green transition, after the World Bank group. The combined
portfolio of active energy projects involving the EIB, EBRD, and EU
grants exceeds €500 million. Under Global Gateway, Tajikistan is
not merely a recipient of aid but a strategic partner in shaping a
sustainable energy architecture for Central Asia.