Power Plant Development in Kazakhstan
Kazakhstan is one of the leading countries in Central Asia with vast energy resources, including coal, oil, and natural gas. However, due to the increasing demand for electricity and the need for sustainable development, Kazakhstan has shifted its focus to renewable energy.
In recent years, Kazakhstan Power Market has made significant strides in power plant development. According to GlobalData, the country’s installed capacity increased from 17.5 GW in 2013 to 24.3 GW in 2018, registering a compound annual growth rate (CAGR) of 6.7%. The growth in installed capacity is primarily driven by the construction of thermal power plants. However, Kazakhstan has also seen a rise in renewable energy projects in recent years. To gain more information on the Kazakhstan power market forecast, download a free report sample
Renewable Energy in Kazakhstan
Kazakhstan has set an ambitious target to generate 50% of its electricity from renewable sources by 2050. In line with this goal, the country has introduced several initiatives to promote renewable energy.
Wind Energy: Kazakhstan has significant potential for wind energy, particularly in the southern, central and western parts of the country. According to the Ministry of Energy, Kazakhstan has a potential capacity of 4.5 million MW of onshore wind energy and 1.8 million MW of offshore wind energy. To harness this potential, several wind farms have been commissioned or are under development.
Solar Energy: Kazakhstan has abundant solar resources, with nearly 70% of the country’s territory having more than 2,000 kWh of sunshine per square meter per year. The government has set a target to install 1 GW of solar capacity by 2020. Kazakhstan’s first utility-scale solar PV power plant, Burnoye, was commissioned in 2014 with a capacity of 50 MW. Additionally, several other solar projects are under development in the country.
Hydropower: Kazakhstan has several rivers and water resources, making it an ideal location for hydropower projects. Currently, hydroelectric power accounts for over 10% of Kazakhstan’s electricity generation. To encourage more development in this sector, the government has implemented several policies, including simplifying the process of obtaining permits and licenses for hydropower projects.
Kazakhstan Energy Sector
The energy sector is a crucial component of Kazakhstan’s economy, contributing about 8.5% of the country’s GDP. Kazakhstan has significant coal reserves and is one of the largest coal-producing countries in the world. Coal is the primary source of electricity generation in the country, accounting for over 80% of the total installed capacity.
However, the government is increasingly focusing on diversifying its energy mix and reducing its reliance on fossil fuels. In addition to promoting renewable energy, Kazakhstan is also exploring nuclear energy as a potential source of electricity. Currently, there is one nuclear power plant in Kazakhstan, the BN-350 reactor, which produces both electricity and supplies heat to nearby cities.
In 2019, Kazakhstan launched its the third Modernization Program (Nurly Zhol), which aims to transform the country’s economy and stimulate growth in various sectors, including the energy sector. The program includes several initiatives to improve energy efficiency and promote renewable energy.
Kazakhstan Power Market Size and Trends by Installed Capacity and Forecast, 2023-2035
According to GlobalData, Kazakhstan’s installed capacity is expected to reach 28.7 GW by 2030, registering a CAGR of 1.8% during the forecast period of 2023-2035. The growth in installed capacity is primarily driven by the construction of coal-fired power plants, which are expected to account for over 70% of the total capacity.
However, the share of renewable energy in the country’s energy mix is expected to increase significantly during the forecast period. According to the Ministry of Energy, the share of renewable energy in Kazakhstan’s total installed capacity is set to increase from 1.2% in 2018 to 6% by 2020 and 10% by 2030. As a result, the government is expected to increase its investment in renewable energy projects in the coming years.
The growth in renewable energy is also expected to improve the country’s energy security and reduce its carbon footprint. Renewable energy projects are likely to create new jobs and stimulate economic growth in the country, thereby contributing to Kazakhstan’s overall development.
Renewable power generation and storage facilities are mushrooming up very quickly all around, due to the growing climate concern around the world.
This has given a formidable push to the Energy market and has been the reason behind the increase in the energy as a service market.COVID-19 has affected the energy sector uniquely, but as the energy sector forms the backbone of the fight against the coronavirus, it stands its ground against the slowdown.
Energy market is capable to take a little shock along the way and is not going to be affected by the pandemic to a greater extent, as most of the countries have put up safety measures to guarantee the continuation of operations; however, it is going to be affected nonetheless.Government boost to the renewable energy sources due to its multiple benefits like lower costs, reduced carbon footprint, environment-friendly, and energy efficiency is pushing the demands ahead in several countries.
Along with this, increasing government investments in sponsoring renewable sources is going to engage demands and push growth rate ahead in the market.North America is expected to be the largest regional market, due to the fact that it has major intelligent building and building automation vendors.
Also, these key players are inclined towards growing this market by reducing costs for delivering services and enhancing the customer experience.Energy as a Service is still in the nascent stage in several developing countries like India, Indonesia and others in Asia Pacific region.
However, growing government push to renewable energy sources and housing projects is expected to boost the demand in the market/Artificial Intelligence along with several other technologies like machine learning, big data among others are being used in the energy sector.
