Is Kazakhstan at a crossroads in its energy sector?

Kazakhstan, a vast and resource-rich nation in Central Asia, is at a crossroads in its energy sector. With a growing emphasis on sustainability and a need to align with global decarbonization efforts, the country is embarking on a transformative initiative that aims to ensure the security and reliability of its energy supply.

Are energy prices a social concern in Kazakhstan?

The report recognises that energy prices are a significant social concern in Kazakhstan. A rise in prices for liquified gas used in vehicles contributed to the unrest that gripped the country in January 2022. However, low prices have made it difficult to diversify the types of energy used for the domestic market and to promote energy efficiency.

Will Kazakhstan's Energy Transition be a model for other countries?

Kazakhstan’s progress on the energy transition can serve as a model for other countries in the region and beyond on advancing a just transition away from fossil fuels–helping to build a more sustainable, resilient economy for all.

Is Kazakhstan phasing out inefficient subsidies and modernizing its energy infrastructure?

Kazakhstan's energy sector has long been dependent on fossil fuels, and the country now faces the challenge of phasing out inefficient subsidies and modernizing its energy infrastructure.

Does Kazakhstan need more energy?

As Kazakhstan expands renewables, more investment will be needed in flexible capacity such as gas-fired and hydro power plants to accommodate the variability of solar and wind output, the report says. Kazakhstan’s system currently relies significantly on electricity imports from Russia to cover imbalances and maintain frequency stability.

What is Kazakhstan's energy subsidy reform plan?

At the heart of this endeavor is a comprehensive energy subsidy reform package, driven by a partnership between the Government of Kazakhstan and the World Bank, working closely with the private sector.