Kazakhstan Ventures into Renewable Energy Triumphs and Future Hurdles
As per the 2023 United Nations Conference on Trade and Development (UNCTAD) World Investment Report, foreign direct investments (FDI) in Kazakhstan's renewable energy sector accounted for 31% of the total FDI between 2015 and 2022. Kazakhstan stands in the top 10 among developing nations drawing FDI specifically in renewable energy.
Nurlan Kapenov, head of the association, highlighted Kazakhstan’s historic shift from fixed tariffs to auction bidding for renewable energy projects. This change created a dynamic market, drawing 230+ companies from 13 countries to participate in auctions.
“By the first nine months of 2023, almost 6% of our electricity comes from renewable sources. Our auctions are esteemed nationally and internationally for fairness and transparency in selecting winners, where price and project capacity are pivotal,” he explained.
Kapenov noted a record-low wind energy price this year at 10.38 tenge per kilowatt-hour (kWh) for constructing a 10.001-megawatt (MW) wind power plant in the Abai Region.
Kazakhstan operates 141 renewable energy facilities above 100 kilowatts (kW), totaling an installed capacity of 2,715.8 MW, inclusive of decommissioned facilities.
At the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change, the association presented the Qazaq Green Certificate Program, marking Kazakhstan's inaugural domestic voluntary carbon standard.
This program extends an opportunity to private companies outside Kazakhstan’s trade system to showcase their dedication to environmental, social, and governance (ESG) principles. They can now offset their carbon footprint by acquiring voluntary offset units. Through the Qazaq Green Certificate Program, individuals and corporations can actively contribute to combating climate change by purchasing these voluntary offset units, reaffirming their commitment to ESG principles.(Source:astanatimes)
