Inter RAO’s Historic Power Link to Kyrgyzstan and Market Context

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Inter RAO, the Russian operator responsible for importing and exporting electricity, recently marked a historic milestone by initiating power deliveries to Kyrgyzstan for the first time. The entity confirmed this development through a press notice carried by TASS, the Russian news agency.

According to the announcement, on April 15, 2023, electricity began moving from Russia’s Unified Energy System (UES) toward Kyrgyzstan’s energy network, with transit routing through Kazakhstan’s UES. This marked the first time such cross-border transmission occurred in the region, highlighting a new link in the Central Asian energy landscape.

Inter RAO stated that the regime of deliveries would amount to 900 million kilowatt-hours over the period from April 2023 through March 2024. At present, the actual flow is limited to 400 MW due to the current capacity constraints of Kazakhstan’s electrical grids, a factor that directly shapes how much energy can be scheduled for export at any given time.

The issuer also noted that should the need arise, Inter RAO possesses the capacity to address Kyrgyzstan’s electricity deficit in full, a gap that has been reported to approach 3 billion kilowatt-hours. This assertion underscores the potential for cross-border energy cooperation to play a pivotal role in stabilizing Kyrgyzstan’s power supply during periods of higher demand or grid stress.

Separately, on April 3, TASS referenced an analytical commentary from ACRA, the analytics firm, which revealed that the retail electricity market debt within Russia had risen by 32.4 billion rubles. The cumulative debt for 2022 stood at 321.9 billion rubles, indicating a developing strain within the domestic electricity market that could influence pricing, supply security, and policy discussions in the near term.

In related developments, Riku Huttunen, head of the energy department at Finland’s Ministry of Economic Development and Employment, stated that resuming electricity supply from Russia does not pose an immediate priority for Finland. The comment reflects the balancing act many European economies perform as they assess energy security, diversification of supply sources, and the broader implications for regional energy markets in Northern Eurasia.

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