Kazakhstan
With a cumulative score of 1.5, Kazakhstan ranks number 52 among emerging markets and number 81 in the global ranking.
- Emerging markets
- Asia-Pacific
1.88 / 5
Power score
1.01 / 5
Transport score
0.86 / 5
Buildings score
Low-carbon strategy
Net-zero goal and strategy
Kazakhstan does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Kazakhstan’s Nationally Determined Contribution (NDC) – meaning its official plan to meet the goals of the Paris Agreement – aims for a 15% reduction in greenhouse gas emissions from 1990 levels by the end of 2030. With additional international investment and greater access to low-carbon technologies, it says this goal could be increased to a 25% cut. The sectors being targeted for mitigation are energy, transport, industrial processes, agriculture, and waste.
Fossil fuel phase-out policy
Kazakhstan has a plan to phase out fossil fuels based on modernizing ageing infrastructure, but it does not specifically target fossil-fuel power plants.
Power
Power policy
Fossil fuels are heavily subsidized in Kazakhstan. The country generates its power primarily from coal, though there have been small increases in solar PV and small hydro capacity. Kazakhstan is aiming for up to 15% of electricity generation to come from renewables by 2030, rising to 50% by 2050. It met its target of 3% of generation of renewables by 2020, adding capacity primarily through auctions. Some 1,418 megawatts of renewables have been contracted since the first auctions in 2018. Consumers are also able to participate in Kazakhstan’s net metering policy with renewable installations of up to 100 kilowatts. Additionally, the country is able to issue RECs and aims to utilize them to increase renewable energy capacity starting in 2022.
Power policies
Power prices and costs
Kazakhstan does not have a time-based tariff, but residential tariffs are based on a progressive rating system. Kazakhstan currently does not subsidize power but has a price cap on kerosene and diesel to keep it affordable for farmers.
Power market
The country has a quasi-monopolistic power market. All renewable generators must sell to the national grid, but retail customers may choose different distribution networks. Transmission is completely dominated by the state-owned operator, KazTransGas, while generation is carried out mainly by private enterprises.
Kazakhstan has a 100% electrification rate and rising peak power demand. Power infrastructure is very outdated, but there is no official plan to modernize plants.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Kazakhstan’s support for renewables is largely focused on utility-scale projects. The lack of assistance for small-scale renewables coupled with low retail power prices hinder behind-the-meter solar deployment. Additionally, Kazakhstan is still viewed as a high-risk country for foreign investment due to high curtailment risk.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Kazakhstan has not implemented a specific clean transport target, though it is exploring green infrastructure for public transportation. Old vehicles are prevalent in the country, as many people find it difficult to afford a new car.
EV policy
There are policies in place to encourage consumers to switch to electric vehicles (EVs), such as zero import duty and exemption from transport tax. Gasoline is also taxed to incentivize more EV usage. With Kazakhstan now being able to produce EVs domestically, this could make them more popular.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Kazakhstan’s low-carbon heating market is in its infancy.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
There are very few policies in place and they remain on the municipal level.
Buildings policies
Additional insights
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