QAZAQ GREEN. Nurlan Kapenov, Chairman of the Board of Directors of the Qazaq Green Renewable Energy Sources (RES) Association, delivered a speech during the panel session at the Astana International Forum in Kazakhstan, titled "New Frontiers for Green Economic Transformation'.

He stressed the need to prioritize the nation's well-being.

"In Kazakhstan, 70% of emissions are attributed to coal-fired power generation. It is imperative that we address the substitution of coal-based energy with cleaner alternatives. Over the past 30 years, Kazakhstan's energy system has deteriorated significantly, leaving the country heavily reliant on imbalances and power overflow from the Russian Federation. If Russia were to halt its support in balancing our energy system, we would regress to the 1990s, when blackouts were common," expressed Nurlan Kapenov.

He highlighted that Kazakhstan, which previously faced challenges in balancing its energy system, now confronts tangible issues with power generation itself.

"We must focus on the expansion of power plants. There is a consensus that new power facilities are needed," Kapenov acknowledged.

“However, the crucial question arises: what type of power plants should we build? Presently, the government has prioritized the development of 4 GW of new coal-fired generation capacity. In essence, we are taking a step backward, reverting to the same practices that have caused extensive pollution from coal-fired power generation throughout the years, affecting our environment and the future generations. Nevertheless, there are complexities to consider. Renewable energy is inherently unstable and contributes to imbalances. Historically, Kazakhstan has been regarded as a base capacity due to its abundance of low-cost coal. The Soviet Union designated Kazakhstan for coal-based power production, while other Central Asian countries with mountain rivers assumed the role of maneuvering capacity. Unfortunately, Kazakhstan now faces limitations in maneuvering capacity, trapping the country in a precarious situation. Consequently, during this transitional phase, we need to develop the electricity sector, promote renewable sources, and, at least for the time being, foster gas-fired generation," he elaborated.

Kapenov also proposed exploring opportunities for regional energy cooperation during this transition period. He cited the example of Europe, where countries like Denmark, Norway, and Great Britain collaborate through a common system operator to balance their energy needs.

"They support each other in achieving balance. For instance, wind power is harnessed by capitalizing on pressure differentials between regions. If one area experiences a pressure drop, another area compensates. Through this collaboration, countries assist one another in maintaining equilibrium," he exemplified.

“Please keep in mind that Kazakhstan has the cheapest tariffs in the world.. While this may bring us joy, we mustn't overlook the impact on the nation's well-being. These low tariffs hinder the growth of the electricity sector. In essence, embracing a new generation of energy production implies higher rates without question. And, most importantly, they burden everyone financially. However, we must weigh the scales and prioritize the health of our nation, our children, and future generations. It's a choice we must make: either prioritize health or remain in our current economic predicament. Moreover, it is worth noting that the root cause of these issues lies in people's incomes and business revenues. Therefore, this situation cannot allow the government to make a decision to increase tariff prices,” he said.

This situation creates a vicious cycle, but efforts are underway to break free. A significant stride has been made through the implementation of a strategy aimed at achieving carbon neutrality. We now have a clearer understanding of our goals and the timeframe in which we aim to accomplish them. The Ministry of Energy, in collaboration with the market, is currently formulating a strategy for the development of the electricity sector. It is crucial to strike a delicate balance between tariff adjustments. In other words, the strategy must account for the economic aspect of the equation, as stated by Nurlan Kapenov.