00:10Cazakstan is aiming to mobilize nearly 18 billion euro in investment in cleaner energy with support
00:16from the European Bank for Reconstruction and Development. Investment from both public and
00:21private sources will be channeled through Kajet, Kazakhstan's just energy transition platform,
00:27which is due to be officially launched at COP31 in Turkey.
00:33Welcome to East-West Connect. We highlight business and investment opportunities in Kazakhstan
00:37and across Central Asia, connecting the region with Europe and beyond. Around half of the 18
00:43billion in total investment will help deliver 10 gigawatts of new renewable capacity by 2035.
00:50A quarter of the funding, or around 4.5 billion, will go towards integrating renewables and improving
00:56the reliability of the power system. Another quarter will support the electrification of
01:01transport, industry and SMEs, alongside upgrades to electricity networks and smart energy systems.
01:08The move is expected to cut greenhouse gas emissions by over 20 million tons a year,
01:13equivalent to around 7% of Kazakhstan's energy-related GHG emissions. More broadly,
01:19Kajet supports Kazakhstan's existing commitments to carbon neutrality by 2060, including a target to
01:25reduce net GHG emissions by up to 25% by 2030 compared with 1990 levels. To discuss what this means
01:34for
01:34Kazakhstan's energy transition and its wider impact, we're now joined by Saulia Sabiwa, Climate Policy
01:40Director at the Ministry of Ecology and Natural Resources.
01:45Ms. Sabiwa, welcome.
01:47Thank you very much for the invitation.
01:49What are the biggest projects currently in the pipeline under Kajet and how much investment are they expected to attract?
01:55The system of Kajet, today, includes large projects for new energy sources.
02:03In Dubai, at the conference on the first time, in 2023, there was a project for 1 gigawatt.
02:09It's a building of a wind electric station in Jambulsk, a city of Mirny.
02:15And this flagship project was included in the platform of Kajet.
02:20It's a flagship project, and it's about 900 million dollars in investments.
02:24What are Kazakhstan's biggest investment opportunities in the Just Energy Transition?
02:29And what international partners is Kazakhstan looking to attract through Kajet?
02:34We are a country that is dependent on water.
02:37And, of course, we have large TETs, large electrical stations.
02:43We need modernization of these networks.
02:46We also need a re-qualification of workers of energy companies.
02:50And, of course, we are actively interacting with our partners.
02:55It's partners of countries, countries of European Union, first of all.
02:59Our constant partner is Great Britain.
03:02We also work with the Green Climate Fund and the Global Ecological Fund.
03:07In addition to that, we are actively interacting with our cooperation with the Climate Investment Fund.
03:13Which regions face the biggest social risks from the energy transition?
03:18And how will the government make sure they benefit from the new economic and investment opportunities?
03:25I think that, in the first place, with difficulties will be faced with large regions.
03:32It's Karagandinsk, South-Kazachstan, South-Kazachstan, South-Kazachstan.
03:37And, in general, those regions, where the electric energy produces, large TETs and large electrical stations.
03:48But, before we leave the gas, we need to calculate.
03:53And these research in the platform of our partners, which we expect, will be given results in Kazakhstan.
04:01And, in the future, we can calculate our large infrastructure projects in the portfolio of projects.
04:07Mr. Beeva, thank you so much for your time today.
04:10Thank you.
04:13Helping Kazakhstan establish an investment-ready renewable energy market is the European Bank for Reconstruction and Development,
04:21a key partner in the Kajet Just Energy Transition platform.
04:25We're now joined by Yerlan Ramazanov, EBRD Deputy Head of Kazakhstan and Regional Head of Energy.
04:34Mr. Ramazanov, welcome.
04:36Thank you.
04:37Thank you for having me today here.
04:38How investment-ready would you say Kazakhstan's renewable energy market is today?
04:44And, what role can Kajet play in increasing its growth potential?
04:50It is almost there.
04:52But, at the same time, Kajet, the Kazakhstan Just Energy Transition platform,
04:56it is an initiative of the government of Kazakhstan.
04:58I think that any investment project is successful if it has the resource.
05:03And, here, I think that Kazakhstan is blessed by the natural resources needed for the renewable projects.
05:09It also has this goal to support development of enabling,
05:14business-enabling, investment-enabling regulatory framework for the further development of renewables
05:20and integration of the battery storage capacity expertise which is needed.
05:25And, here, I think that the just part is so important.
05:28And, all of this will come to the question of financing.
05:31How have renewable energy auctions and longer-term power purchase agreements
05:37changed the investment climate for renewable projects in Kazakhstan?
05:41The system of auctions and the long-term PPAs, power purchase agreements,
05:46it actually gave a clear understanding of the rule of the game to the investors.
05:51It set a risk allocation between the government and the developers,
05:57effectively and eventually allowing for the banks to provide the financing for this type of projects.
06:03And, for the first project EBRD financed in Kazakhstan, it dates back to 2015.
06:11And, over these 11 years of experience, I would say that the agreements are being honored
06:16and the off-taker is paying in full and on time.
06:21I think that, also, the cross-sectoral impact is also via two simple facts.
06:26The first one is the tariff. Since 2018, when the auction system was introduced,
06:33comparing to the tariff in 2025, they decreased two times in Kazakhstan.
06:38And, the second one is that Kazakh companies, domestic companies,
06:44they established the experience building and operating renewable energy projects,
06:50therefore bringing this expertise in the country.
06:53What are the biggest remaining barriers to attracting privates
06:56and international investments into Kazakhstan's renewable energy sector?
07:00First, I think that there are technical obstacles.
07:03And, this is the grid and the stability of the grid, particularly the balancing of the grid.
07:08Second one is the regulatory framework, which still needs improvement.
07:13For example, as part of also KAGEAT, we are aiming to work with the authorities
07:18to bring into operation the regulatory framework for the battery storage projects,
07:24for the pump storage projects.
07:25And, the third one, I think that long-term investors, they need stable rules and they need a vision.
07:34And, from that perspective, KAGEAT, with a vision to add 10 gigawatts
07:39of new renewable capacity by 2035, gives this vision to the investors,
07:44saying that it is available and that these projects are to be implemented in Kazakhstan.
07:48Mr. Ramazanov, thanks so much for your time today.
07:50Thank you so much.
07:54That's it for now.
07:55See you in the next episode of EastWestConnect.
07:57here at the next episode of EastWestConnect.
07:59.
07:59.
07:59.
