The energy transition has become a key global agenda. Green electrification is the foundation for a sustainable future, and the experiences of other countries provide valuable guidance for Kazakhstan. The TotalEnergies Energy Outlook 2024 report highlights that shifting to renewable energy can significantly reduce energy system losses. Currently, around 60% of energy is lost due to inefficient conversion and transmission. In the “Rupture” scenario, these losses could decrease to 40%. Kazakhstan, with its vast potential in renewable energy, can leverage this global expertise to achieve its national goals.
Global Examples: From Theory to Practice
European Union
Europe leads the world in the use of renewable energy sources. In 2023 the wind and solar power accounted for over 23% of the energy mix in major EU countries. Large-scale infrastructure development programs in countries like Germany, Italy, and Spain have minimized energy transmission losses. For Kazakhstan the key lesson is the modernization of grid infrastructure to support renewable energy integration.
China
China has shown rapid progress in solar and wind energy. By 2023 it became the global leader in installed capacity for solar panels and wind turbines. The country also focuses on energy storage technologies, solving the issue of renewables’ variability. Kazakhstan could adopt China’s approach to energy storage systems to enhance the efficiency of its wind and solar resources.
United States
The U.S. shale revolution transformed the energy sector and also supported renewable energy development. A critical aspect of the American model is attracting private capital through incentives such as tax breaks and subsidies for green energy projects. Kazakhstan could follow this example by balancing the development of traditional and new energy sources, with a focus on sustainability.
Kazakhstan: Challenges and Barriers
Dependency on Coal
Over 70% of Kazakhstan electricity is generated from coal. This creates significant environmental and economic risks. According to the report, replacing coal with renewable sources like solar and wind, combined with flexible gas power plants, can globally reduce CO2 emissions by 8 gigatons. For Kazakhstan this is an opportunity to improve air quality and meet its climate commitments.
Insufficient Infrastructure
The report emphasizes the importance of energy infrastructure. In Europe up to 15% of renewable energy is lost due to insufficient grid capacity. Kazakhstan faces a similar challenge: regions with high generation potential, such as Mangystau or Zhambyl, struggle to connect to national grids. This barrier slows sector growth and deters investors.
Lack of Support for Electric Vehicles
By 2050 the sales of zero-emission vehicles (ZEVs) are expected to grow sixfold. In Kazakhstan, the adoption of electric vehicles remains minimal. Introducing subsidies and developing charging station infrastructure could accelerate the transition to cleaner transportation.
How to Adapt the Experience?
Infrastructure Modernization
Germany’s example shows the necessity of grid infrastructure reforms as a foundation for integrating renewables. Kazakhstan should prioritize investments in modernizing distribution and transmission lines. Public-private partnerships could facilitate these projects.
Subsidy Programs
China demonstrates that subsidies and tax breaks for equipment manufacturers and project developers significantly boost the sector’s growth. Kazakhstan could introduce financial support schemes aimed at local production of solar panels and wind turbines. This would create jobs and reduce reliance on imported technologies.
Creating a National Green Energy Fund
In the U.S., tax incentives for green energy played a critical role in attracting investors. Kazakhstan could establish a national fund to finance renewable energy projects, including solar and wind power plants. Such a fund could attract resources from international organizations like the World Bank or the Green Climate Fund.
Potential Benefits
Green electrification offers multiple benefits for Kazakhstan. First, it reduces carbon emissions and improves environmental conditions in major cities like Astana and Almaty. Second, it brings economic advantages: building solar and wind power plants could create thousands of new jobs in the regions. Third, it enhances energy efficiency and reduces dependence on fossil fuels.
What Needs to Be Done?
1. Develop a Strategy: Kazakhstan needs a long-term national program to advance renewable energy, with clear targets for 2030 and 2050.
2. Provide Business Incentives: Subsidies and tax breaks for private investors will accelerate the sector’s development.
3. Upgrade Grids: Addressing issues with connection and energy distribution should become a priority.
4. Support Local Initiatives: Creating favorable conditions for small and medium-scale renewable energy projects will strengthen the local economy.
Green electrification is not just an environmental necessity. It is an opportunity for Kazakhstan to achieve a new level of sustainable development. By leveraging international expertise, the country can become a leader in renewable energy in Central Asia. However, bold and systematic actions are needed today.
Prepared by: Sultan Valikhanov, expert of the Economy KZ portal
