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Home»Finance»Can Kazakhstan Succeed in Its Transition Toward Clean Energy?
Finance

Can Kazakhstan Succeed in Its Transition Toward Clean Energy?

February 11, 2025No Comments6 Mins Read
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Can Kazakhstan Succeed in Its Transition Toward Clean Energy?
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The development of clean energy has become a priority for much of the world due to the continued impacts of climate change. One significant consequence of climate change is the increasing intensity and frequency of wildfires, as seen in the recent devastating California wildfires, along with more severe storms and prolonged droughts.

Central Asia has been particularly vulnerable to these effects, grappling with water scarcity and extreme weather patterns. Glaciers are retreating at an alarming rate, feeding rivers that now struggle to sustain growing populations. Farmers in Kazakhstan are faced with challenges as once-reliable water sources dwindle, their crops withering under frequent droughts in the summer. Extreme weather – once an exception – has become the new normal. In April 2024, entire villages in northern Kazakhstan were submerged as unprecedented floods swept across the region.

These environmental shifts are disrupting food production and putting livelihoods at risk. For decades, the country’s reliance on fossil fuels seemed unshakable. But now, faced with climate disasters at home, Kazakhstan is accepting clean energy as a necessity, not just an ambition. 

Climate Change Is Forcing Renewable Energy Development

In December of last year, Kazakh President Kassym-Jomart Tokayev noted at the One Water Summit in Riyadh that over 2 billion people worldwide lack access to safe drinking water, with more than 4 billion experiencing severe water scarcity. To address these challenges, he announced Kazakhstan’s plan to host a regional climate conference in 2026, in partnership with the United Nations, to drive cooperation and solutions for water management in Central Asia.  

Alongside this, Kazakhstan has begun reshaping its energy landscape, making investments in clean energy to mitigate environmental risks. By the end of 2024, Kazakhstan had built a network of 148 renewable energy facilities, generating nearly 3,000 megawatts of clean power. Wind turbines now dot the skyline across 59 wind farms, while 46 solar plants utilize the region’s abundant sunlight. Hydroelectric stations and biomass plants further diversify the mix. Yet, despite these strides, renewables still account for just 5 percent of Kazakhstan’s energy supply – a figure the government is determined to boost. The goal is for renewables to reach 15 percent of the energy mix by 2030 and 50 percent by 2050.

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But can a country so deeply tied to coal and oil truly transform its economy? And will international investors remain committed in the long run? 

For now, the signs are promising. A $1.4 billion wind power station, spearheaded by the UAE’s Masdar, is set to inject 1 gigawatt (GW) of clean energy into Kazakhstan’s grid. French energy giant TotalEnergies has committed to a similar-scale wind farm. And in a move that could supercharge domestic clean energy production, Envision Energy, a global leader in green technology, has broken ground on a new wind turbine and energy storage manufacturing facility in Khorgos.

Speaking at the Abu Dhabi Sustainability Week Summit on January 14, Tokayev, stated that “it is very much important that international partners including Masdar, Total, Eni and others have pledged 43 GW of green energy projects in Kazakhstan.” But whether these investments translate into long-term energy transformation will be the ultimate test in the coming years.

Tokayev has also framed the construction of Kazakhstan’s first nuclear power plant – approved by a nationwide referendum – as a game-changer in the country’s push for sustainable energy. With coal still generating over 60 percent of Kazakhstan’s electricity, the shift toward nuclear power can be a departure from the past. According to the proponents of nuclear energy, unlike wind and solar, which depend on nature, nuclear energy provides a stable, carbon-free power source. If realized, the nuclear power plant can help Kazakhstan meet its carbon neutrality target by 2060. However, the project’s success hinges on securing international investment, attracting top-tier expertise, and – perhaps most crucially – winning public trust. 

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Need for International Cooperation 

Kazakhstan’s clean energy transition requires external support. At last year’s COP29 in Baku, Kazakhstan secured approximately $3.7 billion in agreements with international companies and development institutions to advance green energy projects. Europe has emerged as a key ally here. Kazakhstan and the European Union formalized a Strategic Partnership on Raw Materials, Batteries, and Renewable Hydrogen – a deal designed to create sustainable supply chains and drive forward green technology innovation. To support this, Kazakhstan is ramping up exploration of critical minerals like lithium, cobalt, and nickel, aligning itself with the global push for electrification and clean energy storage.

Germany has also doubled down on its energy ties with Kazakhstan. During his 2024 visit, Chancellor Olaf Scholz secured fresh agreements focusing on renewable energy development and critical minerals – essential for Europe’s transition away from fossil fuels. 

The nuclear energy question is drawing international attention, too. In November 2024, Tokayev met with French President Emmanuel Macron in Paris. France, with its long history in nuclear energy, could play a key role in helping Kazakhstan build its first-ever nuclear power plant. But this is unlikely to be a solo effort. Kazakhstan is considering the formation of an international consortium, potentially involving Russia, China, and other global players, to ensure a diverse pool of expertise and technology.

Closer to home, Kazakhstan, Azerbaijan, and Uzbekistan signed a Strategic Partnership Agreement last November on green energy development and electricity transmission. This pact is designed to strengthen Central Asia’s energy security and create a more interconnected power market. 

The challenge now is ensuring these collaborations translate into lasting, tangible progress.

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Can Kazakhstan Overcome the Fossil Fuel Trap?

Kazakhstan has made progress in clean energy, but the reality is that fossil fuels still dominate the nation’s power grid. Breaking free from this dependency will involve navigating the social and economic changes that come with transitioning away from coal and oil. Entire industries, jobs, and communities are built around these resources, and shifting to a greener economy will require bold policies and strong leadership. 

The stakes are high. Climate change is no longer a distant threat, and Kazakhstan is feeling its effects. The devastating floods of 2024 and the region’s worsening water shortages are forcing the country to rethink its energy future. The planned construction of its first nuclear power plant, along with expanding renewable energy projects, signal that the country is serious about its plans. However, achieving carbon neutrality by 2060 will not be straightforward for Kazakhstan, particularly when it comes to diversifying its economy and reducing its reliance on oil revenues. Nevertheless, if Kazakhstan can successfully harness international investment, technological expertise, and regional cooperation, it could set a precedent for energy-rich nations navigating the clean energy transition. 

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