EBRD Renewable Energy Initiative

Kazakhstan

Country Profile

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Kazakhstan is rich with fossil fuel resources. As such, the low price of electricity creates a barrier for the development of renewable energy resources. However, Kazakhstan also has a plentiful supply of hydro, wind, solar, biomass, and geothermal energy.

Climatic conditions are favorable for solar throughout Kazakhstan , with the highest potential is in the southern region and in the regions near the Aral Sea and Lake Balkhash. High speed wind locations are in the southeast in mountain passes leading to China, in the Alytau mountain regions in the center of the republic, and in the southwest on the Caspian seaboard. W ind development has been slow due to the low tariffs (around 3 US cents/kWh).

The Republic’s geothermal resources have been explored as a result of oil and gas exploration and production. The hottest and most extensive geothermal reservoirs were found in the south and southwest of Kazakhstan. Due to its large agricultural base, Kazakstan has significant theoretical potential for biomass energy resources. However, the large area of the country may limit the practical applications of biomass utilization to small systems.

Hydro is of significant importance to Kazakhstan in that it provides for over 12 percent of the country’s electrical capacity. Greater hydro utilization is possible given interest from regional authorities in small hydro, the privatization of the power sector, and the availability of state short-term credits to private investors. Financing, however, does not appear to be available to the other renewable technologies. Combined with a power sector transitioning to private holdings, the low price of electricity and a general lack of awareness towards renewables (with the exception of hydro) the environment is not friendly to development of renewable energy.