QAZAQ GREEN.  In the latest Energiya Joly podcast episode, key challenges and prospects for renewable energy (RES) development in Kazakhstan are examined. Host Zhaksylyk Tokayev, an energy and climate expert, speaks with guests Ainur Sospanova, Chairman of the Qazaq Green Renewable Energy Association, and Gulzhan Nalibayeva, CEO of the Settlement and Financial Center for Renewable Energy Support. Together, they delve into the current state of the renewable energy sector, major achievements, and critical challenges facing the industry.

The discussion highlights initiatives to establish a market for bilateral contracts, foster regional collaboration, and draw on the European Union’s experience to elevate Kazakhstan’s renewable energy goals. Sospanova reflects on Central Asia’s early days in green economy development, noting that a decade ago, the region had no substantial projects, traditional energy systems dominated, and policies weren’t conducive to renewable growth. However, in the past ten years, Kazakhstan has emerged as a regional leader, pioneering large-scale renewable projects. Neighboring countries have followed suit, actively exchanging insights and launching similar projects. Uzbekistan, in particular, has made swift strides, while Kyrgyzstan, Tajikistan, and Turkmenistan are also progressing, discussing tariffs, support mechanisms, and attracting investors.

Sospanova explains: “Ten years ago, Central Asia was a blank slate for green economy development and energy transition. There were no projects anywhere; energy systems were quite traditional, and policies made green development seem impossible. But in the last ten years, huge changes have taken place.” She emphasizes that renewable energy in Central Asia is now seen not as a trend but as an essential means to boost energy production. This shift is partly due to international financial institutions no longer funding coal and gas plants, making green energy more appealing. Another emerging area is green hydrogen, with Uzbekistan launching a pilot project and Kazakhstan discussing similar initiatives.

Kazakhstan has steadily increased its RES share, now at 15% with a target of 50% by 2030. To achieve this, the country has implemented legislative and investment incentives and held initial auction tenders. “These auctions are a crucial step, showing transparency and market accessibility to investors,” Sospanova explains. The Qazaq Green Association promotes investor support initiatives, including the Qazaq Green magazine, Qazaq Green School, and the annual Qazaq Green Fest conference, where the industry’s future and policy recommendations are reviewed.

Gulzhan Nalibayeva, CEO of the Settlement and Financial Center for Renewable Energy Support, underscores state support, highlighting the center's role as a “guaranteed purchaser of electricity produced by renewables” since 2013. This stable revenue source, along with tariff policy changes, has increased market predictability and appeal for investors. She stresses the importance of technical infrastructure, noting that energy systems and grids must be prepared to maintain energy security while increasing renewable energy’s share. “This means developing large interregional networks and local ones as well,” Nalibayeva says, emphasizing that stable legislation and investor confidence in consistent policies are essential.

According to Nalibayeva, Kazakhstan’s guaranteed electricity purchase policy has provided investors with steady cash flow and income confidence. Other key incentives include tax and customs preferences, reduced land taxes, priority grid connections for RES projects, and dispatch incentives. Fixed tariffs have laid a solid foundation, signaling that the market is open and attractive to partners. “The first auctions in 2018 showed market transparency and accessibility, allowing any interested investor to participate with competitive offers,” she notes.

Challenges remain, such as network development and energy system stability, especially as renewable energy’s share grows.

The speakers cover a broad range of issues in Kazakhstan’s renewable energy sector. You can listen to the full discussion on YouTube here.