More than two-thirds of Kazakhstan's electrical power is derived from burning coal.
Coal Still Reigns Supreme in Kazakhstan's Energy Sector, But Greener Pastures Ahead?
Kazakhstan's energy industry is grappling with a coal-reliant past and a green-tinged future. According to data from the National Bureau of Statistics, an overwhelming 70% of electricity is still generated from coal. While environmentalists champion the future of renewable energy sources (RES), their share in the country's total generation stands at a paltry 3%, with another 20% coming from gas and 7% from water.
As alarm bells ring over looming threats to energy security, experts bemoan the shortage of electricity and the decaying infrastructure. The current state of the industry is a far cry from the development of "green" energy, despite optimistic predictions from the Ministry of Energy that half of all electricity will stem from renewable sources by 2050.
In 2021, renewable energy facilities churned out an admirable 4.2 billion kWh, growing from 10.3% in 2015 to 11% in 2020—though this figure plummets to just 3.7% upon excluding large hydroelectric power plants (HPPs).
Several obstacles impede Kazakhstan's energy transition. Economic instability and antiquated regulations are primary hurdles, as are the remaining chokehold of coal and the exorbitant costs associated with the shift to renewable energy. But there's more to the story.
The Upsides and Opportunities
Transitioning to renewables holds promise for Kazakhstan. Renewable energy growth could increase the country's share in the power mix from 13% to a potential 35% by 2035, with significant cost savings and emissions reduction. Investments in new projects, like the Mirny onshore wind farm, could pave the way to a cleaner energy future.
Carbon pricing and policy alterations could accelerate the transition, reducing emissions further and shielding the country from the costs of the Carbon Border Adjustment Mechanism (CBAM). By 2035, implementing a domestic carbon price could generate domestic revenue for renewable energy development and contribute significantly to Kazakhstan's decarbonization.
The road to a greener Kazakhstan may be arduous, fraught with challenges, but the prospects of a brighter, cleaner energy future are tantalizingly within reach.
Further Reading:
- World coal consumption to hit record high this year - forecast
- Kazakhstan can't kick its coal habit. And that's worrisome
- Kazakhstan aims to boost its renewable energy sources (RES) significantly by 2050, with the Ministry of Energy predicting that half of all electricity will stem from these sources.
- Investments in new renewable energy projects, such as the Mirny onshore wind farm, could help Kazakhstan increase its share in the power mix from 13% to a potential 35% by 2035.
- Despite an overwhelming reliance on coal for electricity generation, transitioning to renewables could offer significant cost savings and emissions reduction for Kazakhstan.
- Carbon pricing and policy adjustments could accelerate Kazakhstan's energy transition, reducing emissions and protecting the country from the costs of the Carbon Border Adjustment Mechanism (CBAM).
- By implementing a domestic carbon price by 2035, Kazakhstan could generate revenue for renewable energy development and contribute significantly to the country's decarbonization efforts.
