US, September 11, 2014: Eurasian countries will invest $18.3 billion in electric smart grids over the next decade, forecasts a report published by Northeast Group. The report, Eurasia Smart Grid: Market Forecast (2014-2024) claims that the region has strong drivers for smart grid investment, a number of experienced vendors and significant funding available from multilateral lending organizations. Near-term growth will be focused in Central Asian countries currently battling high electricity losses. Larger countries such as Russia are expected to develop in the medium term.
"The case for smart grid investment in Eurasia is compelling," said Ben Gardner, president of Northeast Group. "Eurasian countries are among the least energy efficient in the world and have some of the highest electricity distribution loss rates. Smart grid will be instrumental in improving the efficiency of the electricity sector in these countries. Available multilateral financing will help kick start deployments in the near term."
Since 2011, the World Bank and Asian Development Bank have committed $380 million for smart grid investments in Uzbekistan. Several other Eurasian countries have similar electricity sector characteristics and could see financing become available if deployments are successful in Uzbekistan. For example, Kyrgyzstan has the second highest electricity losses in the world (at 29%) due to electricity theft and unmetered premises.
Source: Northeast Group