Abstract: This study examines the role of small- and medium-scale innovative technologies in the modernization of Kyrgyzstan’s energy sector. Despite the dominance of hydropower in electricity generation, the country faces serious seasonal shortages, outdated infrastructure, and high levels of winter air pollution caused by coal and biomass use for heating. The paper analyzes several examples of innovation across different levels of the energy system: a stove filter high-efficiency low-emission (HELE) stoves, a Light Detection and Ranging (LiDAR) unit for wind resource mapping, and projects for the modernization of small hydropower plants. These technologies were chosen for their potential to address the country’s key challenges — emission reduction, energy diversification, and improved reliability of supply. The study identifies barriers to wider adoption of innovations, including financial constraints, fragmented regulation, technical challenges, and limited public awareness. It concludes by emphasizing the need for an integrated state policy aimed at supporting local innovations, strengthening institutional coordination, and encouraging investment. The case of Kyrgyzstan may also inform other countries such as Tajikistan, Uzbekistan, Mongolia, and Nepal, which face similar seasonal and environmental challenges.