This project aims to improve the overall performance (quality of service, efficiency, carbon intensity) of the energy sectors in Central Asia and South Caucasus. Currently, these countries are all suffering from a supply gap with, on the one hand, inflated energy demand due to high efficiency losses in transmission and distribution systems and, on the other hand, a constrained energy supply due to limited investment in new and existing energy generation assets. This project seeks to address these challenges by attracting private investments to grid strengthening, efficiency and loss reduction projects in existing power and heat systems, as well as to clean energy generation projects. The program will achieve this through (i) direct support to the private sector, and (ii) engaging with the governments to improve the investment climate. This holistic approach allows the project to pragmatically assess where investments in efficiency or generation are more viable. The initial focus will primarily be on Kazakhstan, Kyrgyz Republic, and Azerbaijan, while allowing for engagements in Uzbekistan, Armenia and Georgia if and when opportunities arise. The project will advise governments on energy sector legislative reforms (including secondary legislation, standard power purchase agreements, and regulations and permitting) in order to reduce key barriers to private investment in renewable energy and energy efficiency. In parallel, the project will work directly with both international investors (who may lack the detailed understanding of the local markets, conditions, and regulatory framework) and with local companies (who may lack awareness and technical experience) to identify, assess, and develop investment opportunities. To date, a client agreement has been signed with Vestas Wind Systems A.S., and further client agreements are currently being prepared.