Project of the Government of Kazakhstan and UNDP-GEF “Derisking renewable energy investment”
The economy in Kazakhstan is very energy demanding – the industry consumes about 69% of the generated electrical energy. Coal constitutes about 55% of primary energy resources consumption, and it is expected that its consumption in absolute terms shall remain approximately at the same level in the mid-term perspective. Around 66% of national power stations use coal to generate energy, also more than 80% of the centralized heating systems in Kazakhstan are coal-based functioning. Such factors like economy structure, the fuel-power resources which are available and deployed – have a great influence on the national quantity of greenhouse gas emissions.
All of that causes the fact that nowadays in Central Asia Kazakhstan is the biggest source of greenhouse gas emissions with its annual emissions quantity at 310,2 Mt CO2e (dated 2015). The greatest share of greenhouse gas emissions falls on the fuel-power complex – in 2015 it was 79% (peaking index – 88%, recorded in 2010). The second place is after the agriculture – 29,1 Mt CO2e or 9% of emission in 2015.
By the intensity of greenhouse gas emissions per GDP unit Kazakhstan is in the first ten countries of the world with the highest level of such index. Therefore, replacement of the hydrocarbon fuel with renewable energy sources when generating heat and power in any quantities shall result in reduction of greenhouse gas emissions.
The goal of the project is to provide assistance to the Government of RK in the development of the renewable energy and to improve the investment climate to encourage the active introduction of renewable energy sites nationwide.
The project targets both large-scale and small-scale renewable energy. The long-term of this project is to contribute to achievement of the energy market transformation in Kazakhstan by significantly scaling-up the deployment of renewable energy in electricity generation, from 1,1% (СЭС, ВЭС, small scale hydropower plant up to 35 MWt, 2017) to a 10% RE share by 2030, which makes 10-fold increase in renewable energy-based energy generation.
The project shall mainly focus on wind and solar energy sources. However, other types of renewable energy shall be considered in the balance as well (biogas, geothermal energy, water power engineering, etc.). The project will promote the latest business and finance models for small-scale RES developers.
Executive agency: Ministry of Energy of the Republic of Kazakhstan
Contact information: Project Manager – Syrym Nurgaliyev
e-mail: syrym.nurgaliyev@undp.org
Address: ul. Azerbaijan Mambetov, 14, office 307, Astana
Tel.: + 7 7172 69 65 50 (2305), mobile: 8-777-833-2090
Status:
Ongoing
Project start date:
November 2017
Estimated end date:
February 2023
Focus area:
Project office:
Implementing partner:
Government of Kazakhstan
Funding Support by
Donor name
Amount contributed
$4,767,949
Delivery in previous fiscal year
2022 $162,324
2021 $340,570
2020 $477,490
2019 $583,077
2018 $184,632

Beneficiaries: Citizens of RK Government of RK
Project duration: 2018 – 2022
Total budget: $ 55,520,000
GEF: $ 4,510,000
Government of RK: $ 3,250, 000
Other: $ 50,910,000
UNDP: $ 100,000