Tajikistan Launches First Major Solar Project with $250 Million Investment
Dushanbe, Wednesday, 14 January 2026.
Shifting from hydropower reliance, Tajikistan finalized a $250 million deal for its first 500 MW solar capacity, aiming to secure energy independence by late 2026.
Rapid Deployment of Solar Infrastructure
The agreement, signed on January 13 by the Government of Tajikistan and Ayon Energy LLC, initiates the immediate development of two photovoltaic power plants with a combined capacity of 500 megawatts (MW) [1]. Located in the Asht district of the Sughd region and the Jayhun district of Khatlon, each facility will contribute 250 MW to the national grid [1][3]. The project is being executed by a consortium including Ayon Energy LLC, Toqikgidroelektromontazh OJSC, and the Chinese firm CSCEC, with an aggressive timeline set for completion. The investor has committed to finalizing the design, construction, and commissioning phases within 2026 [1], with specific directives from President Emomali Rahmon targeting an August 2026 deadline [3].
Addressing Seasonal Energy Deficits
This venture marks a critical pivot in Tajikistan’s energy strategy, designed to mitigate the country’s historical vulnerability to seasonal electricity shortages [1]. While the nation has traditionally relied on hydropower, output often fluctuates during winter months when water levels decrease; the integration of solar capacity is expected to lower the load on the national energy system and ensure a more stable supply for both the population and the economy [1]. The total investment volume for the project stands at $250 million [1], with the capital allocation for each of the two facilities estimated at 125 million [3].
A Framework for Green Growth
The solar initiative is the latest in a series of policy moves solidifying green energy as a national priority, a status the sector is set to hold until 2040 [2]. To facilitate such rapid infrastructure development, the government has implemented fiscal incentives, including a Value Added Tax (VAT) exemption on the import and supply of solar panels and related equipment, which was approved in December 2025 and remains effective until 2031 [2]. This project is a foundational step toward the country’s broader 2030 ambitions, which include increasing electricity generation capacity by 2,680 MW and boosting annual electricity exports to 5 billion kilowatt-hours [2]. With this new 500 MW capacity, this single project represents approximately 18.657% of the generation capacity increase targeted for 2030.