Renewable Energy Developments in Kazakhstan
Tuesday, October 7th, 2008Kazakhstan’s only significant renewable energy source at present is hydropower, accounting for 3 percent of total energy consumption in 2006. At a June 2008 meeting of the Foreign Investors’ Council, Kazakh President Nursultan Nazarbayev called on the Kazakh Government to address the need for the development of renewable energy, taking into account the country’s wind and solar resources. Initiatives proposed by the government have the potential to help certain localities address existing electricity deficits and could provide economic incentives for blending gasoline and diesel with more eco-friendly bio-fuels. Renewable energy initiatives in Kazakhstan are very modest in scope, however, and the main focus of the country will continue to be on the development of hydrocarbons.
Hydropower Initiatives
Kazakhstan’s five hydropower plants produce about 12 percent of the country’s electricity, while coal-fired plants account for over 80 percent of electricity generation. The government is planning to construct a number of large and small hydropower stations in the Almaty region. A major ongoing project is the 300 MW Moinak hydropower station, which is estimated to cost about $300 million, including a $200 million credit from China’s Development Bank.
Bio-fuel Initiatives
Kazakhstan’s bio-fuel sector is in its infancy, and new legislation in the works will for the first time outline the scope of state regulation of this sector. The Kazakhstan Bio-Fuels Association was founded only in 2007. The Ministry of Agriculture is expected to present technical standards in 2009 for gasoline and diesel blended with up to 7 percent bio-fuel.
