China’s shifting preferences in Central Asia also indicate the initiative’s adaptability in the face of local demands and political factors. For instance, Chinese companies in Kazakhstan helped develop eight wind and solar power projects from 2018 to 2022. Those were mostly a result of state-to-state cooperation in green energy. In contrast, in Uzbekistan, China invests through tenders and auctions.
Both Central Asian countries have signed agreements with China on green energy cooperation, Kazakhstan in 2015 and Uzbekistan in 2022. The latter deal evolved into a state-to-state cooperation agreement signed in 2023. The two countries have also made significant regulatory strides to allow more and fairer competition for tenders related to green energy. For both, China serves as a crucial investment partner.
Tangible progress is evident in the ongoing development of photovoltaic power stations by China Gezhouba Group in the Bukhara and Kashkadarya regions of Uzbekistan, each with a capacity of 500 megawatts. Some of these projects have already commenced operations.
![President Xi Jinping and Uzbek President Shavkat Mirziyoyev at the Great Hall of the People in Beijing on January 24. Photo: Xinhua](https://investorminute.com/wp-content/uploads/2024/05/57b123a0-4a5b-42b0-828f-ce52ba2ff711_8f25a103.jpg)
For Uzbekistan, these agreements are not only about investment in green energy but also reducing the dependence on fossil fuel-based technologies. During his visit to China, Mirziyoyev toured vehicle manufacturer BYD’s headquarters in Shenzhen. He also took part in an online ceremony marking the construction of a new facility in Uzbekistan’s Jizzakh region, which is expected to produce around 50,000 hybrid and electric vehicles annually.
China’s push for green energy engagement also fits in with the strengthening of its presence in Central Asia, a move evident through its expanding bilateral trade with the region. During Mirziyoyev’s visit to China, the two countries elevated their bilateral relations to an “all-weather” comprehensive strategic partnership, aiming to boost annual trade to US$20 billion.
However, Central Asian nations are unlikely and somewhat unable to fully transition away from fossil fuels because of the nature of their economies. Uzbekistan, for instance, still heavily relies on fossil fuels for more than 90 per cent of its power generation.
Emil Avdaliani is a professor of international relations at European University in Tbilisi, Georgia, and a scholar of silk roads