Pakistan proposes CASA Energy Market to transform regional energy trade

Pakistan pushes CASA energy market to boost regional power trade and secure Central Asian electricity

ISLAMABAD:Pakistan Minister for Power Sardar Awais Ahmed Khan Leghari has proposed the creation of a CASA Energy Market, a regional power exchange modeled on the European Energy Grid, to help Pakistan and Central Asian states fully harness their renewable and conventional energy potential.

The proposal was put forward during his meeting in Islamabad with Kyrgyz Republic’s Minister for Energy, Mr Ibrarv Taalaibek Omukeevich.

Welcoming his counterpart, the minister called for a practical approach to completing the CASA-1000 project, stressing that its success requires realistic assessments of the seasonal availability of low-cost electricity in both exporting and importing regions. He urged all participating countries to work together to finalize pending project details and ensure long-term economic viability.

Referring to Pakistan’s leadership’s stance that Afghanistan’s stability is tied to rational regional connectivity, Leghari underscored that the effectiveness of cross-border energy projects depends on close cooperation among neighbors. He informed the Kyrgyz delegation that Pakistan’s segment of CASA-1000 is on track for completion by mid-2026 and noted that with both countries already invested in the initiative, all options must be explored to strengthen its financial and operational feasibility.

Leghari also recommended that Pakistan’s northern areas be included in feasibility studies for the planned Kyrgyz-China transmission project, expanding potential avenues for future interconnection.

Outlining a five-point framework for deeper bilateral energy cooperation, the minister called for establishing a Joint Working Group on hydropower projects, expediting collective efforts to move CASA-1000 forward, exchanging lists of specialized fields to facilitate the deployment of Pakistan’s skilled workforce, including northern Pakistan in the China-Kyrgyzstan grid feasibility, and forming dedicated Joint Working Groups to steer collaboration across these areas.

He further emphasized Kyrgyzstan’s role in helping engage the Afghan side to minimize volatility and enhance regional energy linkages.

Both delegations agreed to intensify high-level contacts to resolve outstanding challenges in CASA-1000 and other energy initiatives. They also decided to hold an expert-level meeting in Bishkek with participation from Pakistan, Kyrgyzstan, Tajikistan, and the World Bank to craft a joint strategy. Appreciating Pakistan’s hospitality, the Kyrgyz Energy Minister reaffirmed his country’s readiness to extend full cooperation and supported closer coordination between the two nations.

The CASA-1000 project involves high-voltage transmission lines to transport electricity from Central to South Asia. The CASA-1000 project connects the power grids of Kyrgyzstan and Tajikistan with Afghanistan and Pakistan to enable electricity trade. It involves building new high-voltage transmission lines and substations to transfer up to 1,300 MW of surplus hydroelectric power from Central Asia to South Asia during the summer months, helping to alleviate power shortages in Pakistan and improve energy security in both regions. The main objective of CASA-1000 is to create a regional electricity market and facilitate the trade of clean energy from the Central Asian countries to the South Asian countries.

The four countries part of the CASA-1000 project are Kyrgyzstan, Tajikistan, Afghanistan, and Pakistan. Kyrgyzstan and Tajikistan export their surplus summer hydroelectric power through a transmission system to Afghanistan and Pakistan, with Afghanistan also purchasing power and earning transit fees.

Kyrgyzstan and Tajikistan are the power-exporting countries from Central Asia. They will sell their surplus summer hydroelectricity to the South Asian countries. And, Pakistan is a major power purchaser in South Asia, receiving the bulk of the electricity exports. Moreover, Afghanistan is an energy transit country and will also purchase up to (300) MW of electricity for its own use, in addition to earning transit fees.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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