EBRD & CIF Driving Investment in Kazakh Renewables
Rapid economic growth in Kazakhstan has brought a sharp upswing in electricity demand and usage. Per-capita gross domestic product increased from below USD 6,000 in the mid-1990s to over USD 27,000 in 2019 and the country looked on course to meet its mounting resource demands by harnessing the coal resources in the North East. In recent years, however, Kazakhstan has moved rapidly to achieve the goals for renewable energy development set out in the National Concept for Transition to a Green Economy. A long-term engagement strategy, backed by targeted concessional financing from the EBRD and the Climate Investment Funds, has been instrumental in jumpstarting Kazakhstan’s renewables market.
Cooperation between the Government of Kazakhstan and the EBRD began in 2008 with the signing of a Sustainable Energy Action Plan. Its main objective was to drive sustainable growth and economic diversification and to address regional imbalances within the country. Since 2010, grant funds from the CIF’s Clean Technology Fund have helped strengthen the country’s enabling environment and facilitated the growth in capacity and investments in the renewables sector. This was done through support for developing a robust legislative and regulatory framework, such as designing of feed-in-tariffs, establishing clear laws for investors, developing frameworks for technical, environmental and legal due diligence of projects.
Such technical assistance was complemented by project preparation funds to support first-of-its-kind projects and help private sector developers overcome the initial barriers to market entry.
From 2014, USD 433 million in EBRD investment and CTF concessional financing for 12 solar PV projects have significantly expanded private sector participation in the sector, providing over 572 megawatts (MW) of renewable generation capacity once completed. Of this, 484 MW had already been commissioned by the end of 2019, making up around 89 percent of the country’s total installed solar capacity at that time.
Source : STRATEGIC RESEARCH INSTITUTE