BAKU, Azerbaijan, May 11. The Eurasian
Development Bank (EDB) is strengthening its focus on the
water-food-energy nexus in Central Asia, while maintaining the
energy sector as the core of its 2026–2027 investment strategy, a
source from the Bank’s Analytical Department told Trend.
“The EDB is not planning a radical shift in its investment
priorities. Under the Bank’s new strategy through 2031, the energy
sector remains central: expanding renewables, developing grids and
storage, and modernising existing capacity. Green industrialisation
is also emerging as a key driver of sustainable growth across the
region,” the source stated.
The bank highlighted the strategic significance of Central Asia
as both a challenge and an opportunity for the energy
transition.
“Central Asia is where the pressures and opportunities of the
energy transition converge with particular force. Total electricity
demand could grow by 40% by 2030, while up to 70% of grids and
thermal power plants require modernisation. Yet the region holds
considerable assets: substantial hydropower potential, vast solar
and wind resources, significant gas reserves, and a strategic
location bridging Russia, China, and South Asia. Regional
integration is critical to unlocking this potential – expanding
cross-border energy ties and coordinating water and energy flows
can reduce systemic risks, smooth seasonal imbalances, and attract
large-scale private capital,” the source explained.
The water-food-energy nexus is central to the bank’s approach,
with specific programs already in place.
“The water-food-energy nexus sits at the heart of this agenda.
In response, the EDB has committed over $750 million under its
Central Asia Water-Energy Complex flagship initiative, while the
Bank’s total green portfolio has tripled over seven years to $2
billion. The Bank is moving beyond infrastructure toward systemic
solutions: a $5.3 million grant project with Kazakhstan’s Ministry
of Water Resources and UNDP is building a sustainable irrigation
ecosystem and supporting regional manufacturing of irrigation
equipment,” the source added.
EDB’s analytical research is also shaping investment strategy,
advocating a balanced approach that reduces costs while
significantly cutting emissions.
“The bank’s March 2026 research report on Central Asia’s energy
transition proposes a ‘middle path’ strategy that – by EDB
calculations – is 30% cheaper than full green maximalism, while
cutting the carbon footprint fivefold compared to a
business-as-usual path,” the source noted.
The bank emphasized that strategic investment in energy
modernization, renewable expansion, and integrated
water-food-energy systems collectively positions Central Asia for
sustainable growth, while unlocking significant regional economic
potential.
