The United States has committed $15 million in financing towards the Central Asia-South Asia electricity transmission project (CASA-1000) that will bring electricity from Tajikistan and Kyrgyzstan to Pakistan and Afghanistan.
“We believe CASA-1000 can be a potentially transformative project, helping create a regional energy grid that connects Central and South Asia for the first time. We hope the US financial support for CASA-1000 will help leverage other donors to support the project and encourage the World Bank to present the project to its Board of Directors for final approval next year,” the state department said in a statement.
When completed, CASA-1000 will allow Tajikistan and Kyrgyzstan to profit from existing, unused summer generation capacity by selling electricity to Afghanistan and Pakistan. Afghanistan would doubly benefit from the project as a consumer (300 MW) and as a transit country generating revenue.
Pakistan would add 1000 MW to its national grid during the summer months when it experiences its peak demand period and have access to a reliable, clean, and cheaper energy supply. The CASA-1000 is entirely dependent on existing hydropower generation so it will not affect water-sharing agreements for other Central Asian countries. It also complements ongoing efforts by the Asian Development Bank and others to support a regional energy grid.