This International Energy Agency (IEA) energy sector review of Tajikistan was conducted under the auspices of the EU4Energy programme, which is being implemented by the IEA and the European Union, along with the Energy Community Secretariat and the Energy Charter Secretariat. With abundant water potential from its rivers, natural lakes and glaciers, Tajikistan is almost exclusively reliant on hydro for electricity generation. It is home to some of the world’s largest hydropower plants and is ranked eighth in the world for hydropower potential with an estimated 527 terawatt-hours (TWh). Currently only 4% of the country’s hydro potential is exploited. Tajikistan’s geographic proximity to some of the world’s fastest-growing energy markets means that investing in developing its hydropower potential can contribute to regional energy security and the clean energy transition, in addition to addressing Tajikistan’s high vulnerability to climate change and natural disasters. Coupled with the IEA roadmap on cross-border electricity trading for Tajikistan, published in October 2021, this report aims to give a holistic overview of Tajikistan’s energy sector and to assist policy making at all levels in order to facilitate the effective delivery of the National Development Strategy for 2030 and its ambitious goals, which include increasing hydropower generation capacity by 10 gigawatts and raising annual electricity exports by 10 TWh. It also supports government efforts for ongoing energy sector reforms, aimed at restructuring the state-owned vertically integrated electric utility with financial viability issues, introducing market mechanisms to alleviate power sector challenges and updating its regulatory and tariff regimes. The report commends the government of Tajikistan for setting clear goals for its national development strategy and the subsequent sectoral development programmes, caveats the introduction of domestic coal as a key support for national energy security structures, and advocates for the introduction of other renewable sources and enhanced regional co operation for achieving energy security and sustainable development goals.