Kazakhstan
With a cumulative score of 1.47, Kazakhstan ranks number 53 among emerging markets and number 82 in the global ranking.
- Emerging markets
- Asia-Pacific
1.87 / 5
Power score
0.86 / 5
Transport score
0.91 / 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, although 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 1,218 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.
Power policies
Power prices and costs
Electricity tariffs in Kazakhstan decreased in all sectors from 2019 to 2020. Commercial and industrial tariffs fell by 2% while residential tariffs declined by 18%. There is no 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 in order 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’ 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 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?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Transport
EV market
Kazakhstan has not implemented a specific clean transport target, although it is exploring green infrastructure for public transportation. Old vehicles are very prevalent in the country, as many people find it difficult to afford a new car. But 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 in the country.
EV policy
The government has yet to implement any substantial policy support in the sector and the EV market remains at an early stage.
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. There are very few policies in place, although the country has energy performance standards for new buildings.
The average cost of equipment for a ground-source heat pump is 15,500 euros ($17,990). The government does not offer any loans or grants for energy efficiency measures.
Energy performance standards
Are there minimum energy performance standards for buildings?
Energy efficiency plan
Does the country have a national energy efficiency plan?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
