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Foreign Management of Tajikistan's Power Distribution Networks: Myth or Reality?

in Economy / Tajikistan - by


Rumors circulating in Tajik social media connect the acute shortage of electricity in the country with foreign management of the distribution networks. Let's delve into the details.

Since the beginning of 2021, Tajikistan has seen external management of its distribution networks. Candidates were selected through an international competition organized by the Ministry of Energy and Water Resources.

The rationale behind bringing in foreign managers was to create a transparent and sustainable energy enterprise by improving financial and operational activities. The appointed external manager committed to implementing internationally recognized management methods, policies, and information systems.

This move followed a reform process in the energy sector that led to the division of the energy holding company "Barki Tojik" into three independent entities: OJSC Barki Tojik for power generation, OJSC Power Transmission Networks for energy transmission, and OJSC Distribution Electric Networks for distribution.

The government of Tajikistan, which owns the full stake in all three companies, initiated the involvement of highly qualified international specialists to manage the distribution networks.

The question of foreign involvement in managing the distribution networks is addressed in the context of the electricity market's specifics, indicating that it is not the case.

Tajikistan, like most countries worldwide, lacks large-scale energy storage systems such as high-capacity batteries or air-based electricity accumulators due to their high costs, which only technically advanced and wealthy countries can afford.

One of the most powerful such accumulators (100 MW) was installed in September 2022 at the Dalian Power Station in China, catering to the daily electricity needs of 200,000 residents and enhancing the region's power supply reliability.

The Tajik distribution company receives electricity from the producer through the transmission company, ensuring a balance between generation and consumption. In case of excess supply, the producer reduces output, while during shortages, specific consumers are disconnected to prevent overloads and accidents.

Established in accordance with the government's decree of June 22, 2019, OJSC Distribution Electric Networks aims to ensure the efficient and reliable operation of the distribution network, provide quality energy supply to consumers, maintain equipment functionality, collect payments for electricity, and oversee technical equipment conditions.

With seven branches in different cities, the company's leadership has seen a mix of Tajik and foreign nationals, emphasizing the commitment to efficient operations and high-quality service provision in Tajikistan's energy sector.