Kazakhstan investing in renewables, hydrocarbons, and infrastructure with new energy vision – Euractiv

Kazakhstan is developing its natural resource base, particularly in the energy sector, through exploration and infrastructure expansion. It’s focusing on increasing its energy capacity, discovering new hydrocarbon and mineral deposits, and expanding renewable energy.

These initiatives are central to Kazakhstan’s long-term economic development and its transition to a more diversified energy portfolio. While the country seeks to foster more ties and diversify its economy in general, the European Union has a golden opportunity to deepen engagement with the Central Asian republic, especially in the energy sector.

Expansion of energy capacity

Kazakhstan’s Energy Ministry has developed a comprehensive energy sector plan for 2024-2035, aiming to add 26 gigawatts (GW) of new capacity. Key initiatives include projects in renewable energy and nuclear power, as well as in the national electric grid.

In 2024, Kazakhstan’s renewable energy sector showed steady progress, with energy generation from renewable sources increasing by 10 per cent compared to 2023, reaching 5.6 billion kW/h.

Notable developments include a 1 GW wind farm partnership with the European multinational Total Energies, a 1 GW wind farm with the Emirati state-owned renewable energy company Masdar, and Russia’s Unigreen Energy. There are also projects in collaboration with China for 1.8 GW of renewable energy.

Despite the growth, energy storage remains a major challenge for the integration of renewables into the power grid due to issues such as grid stability and balancing generation with fluctuating consumption.

Legislative changes in 2024 aimed to support the development of small-scale renewable energy projects and energy storage systems, introducing new laws that facilitate auctions and loans for renewable energy infrastructure.

Strengthening of the electric grid includes a 780 km power transmission line in the western region and a planned 500 Kv, 604 km line to unify the western zone with the national grid by 2028. Additionally, a 500 kV line in the southern zone is under construction.

Following an October referendum, Kazakhstan is moving forward with plans for a 2-2.8 GW nuclear power plant in the Zhambyl District, with ongoing supplier negotiations.

These efforts, alongside integrating renewable energy and gas, aim to reduce Kazakhstan’s reliance on coal and cut annual carbon emissions by 44 million tonnes by 2035.

Exploration of hydrocarbons and minerals

Kazakhstan has significant potential for discovering new hydrocarbon deposits. Geologists have identified 15 sedimentary basins containing an estimated 76 billion tonnes of conditional fuel resources.

Oil and gas production in Kazakhstan is concentrated in five developed basins, with the Caspian basin holding about 80 per cent of the country’s resource base. However, five additional basins – North-Turgai, Aral, Syrdarya, Shu-Sarysu, and Priirtysh – hold substantial unrealised potential.

This year, regional geological studies, including a 2D seismic survey of 56,000 square kilometres in the Aral basin, are being conducted. The forecast resources for the Zapadny area of the Aral basin are estimated at 800 million tonnes. Exploration of the Syrdarya basin will also begin this year.

Other geological studies conducted throughout the year in Kazakhstan identified 60 promising areas rich in noble, non-ferrous, and ferrous metals. As a result, 27 solid minerals, 10 hydrocarbons, and 23 groundwater deposits were added to the state register for further exploration.

The government conducts regional geological studies annually, funded by the state budget, including surveys, mapping, and hydrogeological assessments.

By 2026, the goal is to cover 2.2 million square kilometres of Kazakhstan’s territory with geological and geophysical studies. In 2024, this will reach 2.014 million square kilometres.

Over three years, the funding for these studies exceeds $38 million. These efforts are expected to contribute significantly to the country’s economic development; Kazakhstan’s mineral resource base includes a total of 9,548 deposits across solid minerals, hydrocarbons, common minerals, and groundwater.

[Edited By Brian Maguire | Euractiv’s Advocacy Lab ]