The project's goal is to provide surplus hydro-electric power from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan during the summer months.
With financial assistance from the European Bank of Reconstruction and Development (EBRD), alternative energy sources will produce 30% of the country's electricity by 2030, predict observers.
More than 240,000 residents in five cities will benefit from better heating and hot water after implementation of the project.
Kyrgyz Prime Minister Sapar Isakov apologised to Bishkek residents who are freezing in their apartments due to a power plant breakdown.
Kazakhstan's Energy Ministry and UN agencies are working on a new project to promote green technologies
The country is trying to move away from natural gas and other fossil fuels, which currently account for nearly 90% of its generated power.
A power plant upgrade will help serve fast-growing southwestern Uzbekistan.