Abstract. The article analyzes the state of the renewable energy sector in Central Asia. Particular attention is paid to external resources for the development of renewable energy sources (RES), including investments from foreign companies and support from international financial institutions. Hydrogen projects and the creation of “green” energy corridors to the European Union are also considered from this point of view. Based on the analysis of regional impediments to the development of RES; technical, financial and general economic challenges of energy corridors; limitations of the “green” development model for the region, a conclusion is made about the high importance of non-economic factors in the formation of the Central Asian renewable energy sector. In particular, businesses make special emphasis on the reputational aspects of “green” projects (including greenwashing), while local elites emphasize “normalizing” of national policies in respect to the global green agenda. Particular attention is paid to the EU and China, which use the green agenda and RES investments to project their influence in the region. It is concluded that although the development of RES will bring certain positive changes, its transformational potential for the Central Asian economies is limited. In first place this is due to the absence of a comprehensive approach for the development of innovation systems and economic institutions as an important condition for regional green growth. Increasing dependence on partner countries is also considered as a risk.