00:00www.kazakstan.de
00:32Welcome to East-West Connect. We highlight business and investment opportunities in Kazakhstan and across Central Asia, connecting the region
00:40with Europe and beyond.
00:41Around half of the 18 billion 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 the reliability of
00:57the power system.
00:58Another quarter will support the electrification of transport, 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, equivalent to around 7
01:14% of Kazakhstan's energy-related GHD emissions.
01:17More broadly, KJET supports Kazakhstan's existing commitment to carbon neutrality by 2060, including a target to reduce net GHD emissions
01:26by up to 25% by 2030, compared with 1990 levels.
01:32To discuss what this means for Kazakhstan's energy transition and its wider impact, we're now joined by Saulia Sabiwa, Climate
01:39Policy Director at the Ministry of Ecology and Natural Resources.
01:45Mr. Beaver, welcome.
01:47Thank you very much for invitation.
01:49What are the biggest projects currently in the pipeline under KJET and how much investment are they expected to attract?
01:55The KJET system of KJET, today, is a large project for the new energy source of 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, and this project was included in
02:18the platform of KJET platform.
02:20It's a project for about 900 million dollars in investments.
02:24What are Kazakhstan's biggest investment opportunities in the just energy transition and what international partners is Kazakhstan looking to attract
02:33through KJET?
02:34We are a country that is channel-driven, and so we have great objects in TEC, great objects in the
02:41electrical stations.
02:43We need modernization of these networks, need music participants, need
02:46also且 for the Dana-in-Pathis people in energy governance.
02:50And the energy融.
02:52We're currently in sectors in the Commission in the Minister of Ecology active interactions with our partners.
02:56It's partners of the European Union, our partners of the European Union, we're our partners of Western Britain.
03:01Wir arbeiten auch mit dem Green Climate Fund und mit dem Global Ecologischen Fund.
03:06Insofern, wir arbeiten und aktivieren unsere Zusammenarbeit mit dem Klima Investitionen Fund.
03:14Welche Regionen face the biggest social risks from the energy transition?
03:18Und wie wird die Regierung sicher, dass sie von neuen Wirtschafts- und Investitionen profitieren?
03:25Ich denke, dass in der ersten Zeit mit Probleme werden die große Regionen, die Karagandinska, Süheer-Kazachstan, auch die Wester
03:36-Kazachstan und die Regionen, in denen die elektrische Energie verwendet werden, große TETS und große elektrische Instanungen.
03:49Aber bevor wir uns nicht von Gas geben, müssen wir überprüfen.
03:53Diese Forschung von unseren Partnern von unseren Partnern, die wir erwartet werden, wird aus dem Kazachstan.
04:00Und in der nächsten Zeit, können wir überprüfen unsere große Infrastruktur-Infrastruktur-Projekte überprüfen.
04:07Mr. Beeva, vielen Dank für Ihre Zeit heute.
04:09Danke.
04:13Helping Kazakhstan establishen an investment-ready renewable energy market
04:18ist die European Bank for Reconstruction und Development
04:21ein key Partner in der Kajet Just Energy Transition Platform.
04:25Wir sind jetzt hier bei Jarlan Ramazanov, EBRD Deputy Head of Kazakhstan und Regional Head of Energy.
04:34Mr. Ramazanov, willkommen.
04:36Danke, danke für 13 Jahre heute.
04:37How investment-ready would you say Kazakhstan's renewable energy market is today and what role can KJET play in increasing
04:49its growth potential?
04:50It is almost there, but at the same time KJET, the Kazakhstan Just Energy Transition Platform, it is an initiative
04:57of 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, business enabling, investment enabling, regulatory framework for further development of
05:20renewables and 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 changed the investment climate for renewable projects in Kazakhstan?
05:41The system of auctions and the long-term PPAs, power purchase agreements, it actually gave a clear understanding of the
05:49rule of the game to the investors.
05:51It set a risk allocation between the government and the developers effectively and eventually allowing for the banks to provide
06:01the financing for this type of projects.
06:03And for the first project EBRD financed in Kazakhstan, it dates back to 2015 and over this 11 years of
06:13experience, I would say that the agreements are being honored and the off-taker is paying in full and on
06:20time.
06:20I think that also the cross-sector impact is also why two simple facts.
06:27The first one is the tariff.
06:28Since 2018, when the auction system was introduced, comparing to the tariff in 25, they decreased two times in Kazakh
06:38-Thinge.
06:38And the second one is that Kazakh companies, domestic companies, they 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 private and international investments into Kazakhstan's renewable energy sector?
07:00First, I think that there are technical obstacles, and this is the grid and the stability of the grid, particularly
07:07the balancing of the grid.
07:08Second one is the regulatory framework, which still needs improvement.
07:13For example, as part of also Cajiat, we are aiming to work with the authorities to bring into operation the
07:21regulatory framework for the battery storage projects, for 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, Cajiat, with a vision to add 10 gigawatts of new renewable capacity by 2035, gives this
07:42vision to the investors, saying 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, see you in the next episode of EastWestConnect.
