Vulnerabilities in Kazakhstan's Power Sector Highlighted by Renewable Energy Sources, Reshaping Local Perceptions
Kazakhstan Accelerates Renewable Energy Transition, Revealing Critical Infrastructure Challenges
ASTANA — Kazakhstan surpassed its 2025 target for renewable energy generation a year early, with renewables contributing 6.43% of the nation's electricity by 2024. This progress is not without revealing the energy system's vulnerabilities and challenging long-established industry norms, according to Ainur Sospanova, Chairwoman of the Qazaq Green Renewable Energy Association.
In 2024, total installed power capacity reached 3.03 gigawatts (GW), with wind power plants accounting for 1.52 GW and solar power for 1.22 GW. Small hydropower plants contributed 287.7 megawatts, while bioelectric power remained minimal at 1.77 megawatts.
"We can be satisfied with our advancement," Sospanova said, highlighting the increased understanding of renewable energy's benefits across all stakeholders. She emphasized that, 15 years ago, the significance of renewables was not readily grasped by many. Now, there is no need to justify their purpose.
Kazakhstan's electricity generation goals are ambitious, with plans to have 15% of electricity coming from renewables by 2030 and 50% by 2050. Sospanova noted the initial steps are always the most difficult but, with continued progress, the energy sector may soon embrace renewable sources.
However, Kazakhstan's shift to renewables has exposed weaknesses in the nation's energy infrastructure, much of which bears the legacy of the Soviet Union. Aging infrastructure, limited transmission capacity, worn-out grids, and antiquated operational methods are common issues, as are the heavy reliance of certain industries, such as aluminum production and mining, on cheap electricity.
The high cost of severe environmental degradation and human health consequences associated with cheap electricity from the Soviet era have become increasingly apparent. Sospanova, who has been involved in renewable energy legislation for over a decade, observed that the Ekibastuz coal basin, which powers two of the country's largest power plants, has severely impacted regional environments and the health of nearby residents.
The integration of renewables into the existing power grid and addressing their intermittent nature present another challenge. Renewable energy sources, like solar and wind power, are not as stable as traditional coal or gas plants, requiring adjustments at every level of the energy system.
Despite initial reservations, Sospanova reports a shift in perspective among engineers and traditional energy specialists as renewable energy projects continue to proliferate. Over the past decade, more than 3 gigawatts of renewable energy have been introduced, providing energy stability in response to rising consumption and economic growth.
Milestone renewable projects in 2024 include agreements with the Abu Dhabi-based Masdar company to build a 1 GW wind power plant in the Zhambyl Region and an intergovernmental agreement with China to construct 1.8 GW of renewable energy facilities. These agreements demonstrate Kazakhstan's commitment to continuing the expansion of renewable energy.
However, infrastructural modernization will be essential to accommodate this transition, as the current grid system may struggle to handle large-scale renewable energy production. The isolated western electric power system, for example, is linked only through Russia and must be integrated to better accommodate renewable energy.
Sospanova also advocated for increasing local content in renewable energy projects by foreign companies, citing the creation of jobs, economic diversification, and value creation as primary benefits.
The low cost of Kazakhstan's electricity is primarily due to subsidies in the fossil fuel sector, according to Sospanova. When compared under the same conditions, factoring in environmental requirements, renewables may prove to be cost-effective.
In conclusion, Kazakhstan's rapid transition to renewable energy presents both opportunities and challenges. By addressing infrastructure needs, adapting regulations, and fostering local capacity, Kazakhstan can capitalize on its abundant renewable resources and reduce its carbon emissions while promoting economic development.
The finance sector in Kazakhstan needs to consider the increasing investments required for renewable energy projects, as the nation aims to generate 15% of its electricity from renewables by 2030 and 50% by 2050.
As Kazakhstan moves towards a renewable-energy driven future, the energy industry must address critical infrastructure challenges such as aging infrastructure, limited transmission capacity, and the need for grid modernization to accommodate large-scale renewable energy production.
