Kazakhstan To Spend Billions for Energy Infrastructure

Deputy Prime Minister Kanat Bozumbayev chaired on January 15 the first meeting of the working group for the implementation of the national project “Modernization of the Energy and Utilities Sectors.” According to early guidelines, the government envisions an investment of around 6.8 trillion tenge ($12.8 billion) to upgrade public utilities and 6.2 trillion ($11.8 billion) to beef up electricity generation by 2029.

The project, approved on December 25 by Prime Minister Olzhas Bektenov, outlines the creation of 27 new production facilities, as well as modernizing the existing networks, and hinges on the capacity to attract funding from commercial banks, development institutions, and foreign investors.

In particular, official documents show a breakdown of the costs for the construction of three controversial coal-fired projects in the north and east of the country.

The Oskemen coal plant will undergo upgrades with new boilers and turbines, adding 100 MW of capacity at an estimated cost of 140 billion tenge ($265 million), slated for completion by 2028. The construction of new thermal power plants in Kokshetau (240 MW) and Semey (360 MW) will require investment of 389 billion tenge ($737 million) and 518 billion tenge ($981 million) respectively, and should become operational by 2030.

According to an agreement signed in December 2023, Russia’s state-owned utilities InterRAO and ORGRES will cooperate with Kazakhstan’s state entities to build the coal-fired plants.

Despite pledges of transitioning away from fossil fuel and greening its energy mix, around 50% of Kazakhstan’s energy supply as well as around 70% of its electricity generation are fueled by coal. Critics say that instead of building new coal plants, Kazakhstan should focus on renewables.