Kazakhstan’s solar capacity hit 1,306 MW by 2023.⁵

Kazakhstan plans to establish a 50-megawatt plant for the production of solar panels, with initial solar panels production targets 300 units this year, scaling up to 6,000 by 2025/2026 and surging to 30,000 units annually thereafter.⁶

Solar: The average levelized cost of electricity for solar photovoltaic systems in Kazakhstan is approximately 0.057 USD/kWh.⁷

Hydropower: The average cost of electricity generated from hydroelectric power plants in Kazakhstan is approximately $0.03 to $0.05 per kWh.

Coal: The average cost of electricity generated from coal-fired power plants in Kazakhstan is approximately $0.04 to $0.06 per kWh.

⁸

Fossil fuels contribute 87% of Kazakhstan’s electricity generation source

• Coal (about 57%)
• Gas (around 29%)
• Oil (just over 2%)

Clean energy sources contribute about 13% of electricity generation,

• Hydropower at almost 8%
• Wind at approximately 3%
• Solar at less than 2%

The exact number of available hours of electricity from the national grid in Kazakhstan is not available but there are frequent periodic power outages, with the duration varying significantly depending on the region and circumstances. A notable example is the January 2022 blackout that impacted millions across Kazakhstan, Uzbekistan, and Kyrgyzstan, causing outages that lasted several hours.⁹

In 2023, Kazakhstan is experiencing a surge in demand for residential solar panel installations, although exact figures are difficult to determine. Nevertheless, the government’s efforts to promote renewable energy have sparked significant interest, and numerous companies are now engaged in installing solar panels for homes.¹⁰

Kazakhstan has around 46 solar power plant installed or planned as of early 2024.⁵

¹¹

Although precise sales figures for off-grid solar panels in Kazakhstan are difficult to obtain due to limited publicly available data.

Kazakhstan’s off-grid solar panel market is anticipated to experience sustained growth, driven by the country’s pursuit of renewable energy goals and the increasing demand for dependable and eco-friendly energy solutions in rural and remote areas. Off-grid solar, powers rural Kazakhstan, bridging the electricity gap in remote areas beyond the national grid.

⁵¹²

Current Capacity: As of now, Kazakhstan has around 1.3 GW of installed solar PV capacity.

Projected Demand: Kazakhstan’s on-grid solar panel market is poised for sustained growth, driven by government initiatives, technological innovations, and the global shift towards renewable energy. 2030 Target: The country aims to significantly increase this capacity, with projections indicating that solar PV capacity could reach around 5 GW.

Solar Power plant technician:¹³ The average salary for a solar power plant technician in Astana, Kazakhstan, is approximately $7,836.56 USD per year, or $3.77 USD per hour.

Solar fabrication technician:¹⁴ Astana, Kazakhstan solar fabrication technicians earn an average gross salary of $8,544.05 per annum (hourly: $4.11), 1% lower than the national average. Salary ranges from $6,471.76 (entry-level) to $10,446.26 (senior-level) based on experience.

Solar Engineer:¹⁵ The salary for a solar engineer in Kazakhstan varies depending on experience, location, and employer. Here are some approximate figures:

• Average Annual Salary: Around $810.68 USD
• Average Hourly Rate: Approximately $8.16 USD

As of 2024, Kazakhstan’s population is approximately 19.8 million people.¹⁶

The overhead costs for solar panel production in Ivory Coast typically range from 20% to 25% of the total production cost.

Labor costs ¹⁷ In the Republic of Kazakhstan, the average monthly salary stood at $813 USD. Meanwhile, the median monthly wage, based on estimates for the first quarter of 2024, was $536 USD. Additionally, as of January 1, 2024, the minimum monthly wage has been established at $181 USD.

Utility Costs for Businesses in Kazakhstan: ³¹⁸

• Electricity: around $0.076 USD per kWh)
• Water (Industrial Use): Generally ranging from $0.21 USD – $0.32 USD per cubic meter, depending on various factors

These costs are estimates and can fluctuate depending on location, usage patterns, and other influencing factors.

Factory rental costs in Kazakhstan differ based on location and size. To give you an estimate considering residential spaces: a furnished 900 sqft space in a prime area costs around $1,030 USD per month, while a similar space in a standard area costs approximately $670 USD per month. Although these figures are for residential rentals, they provide a rough indication of the rental market’s pricing.¹⁹

Insurance ²⁰ In the fourth quarter of 2023, Kazakhstan’s average per capita spending reached $616.11, while the average per capita income stood at $682.78.

Administrative expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

²¹²²

Electricity generation

As of January 1, 2024, Kazakhstan’s power generation infrastructure comprises 222 power plants with diverse ownership structures, boasting a total installed capacity of 24,641.9 MW and an available capacity of 20,428.4 MW. These power plants are categorized into three tiers: nationally significant, industrially important, and regionally important facilities.

Nationally important power plants are large thermal facilities that produce and distribute electricity to consumers via Kazakhstan’s wholesale market:

• Ekibastuz GRES-1 LLP named after B.G. Nurzhanov;
• Ekibastuz GRES-2 Power Plant JSC;
• Power plant of EEC JSC, ERG, Eurasian Group;
• Main distribution power station Topar LLP;
• Zhambyl GRES JSC named after T.I. Baturov,

Industrial importance power plants, such as CHPPs, deliver heat and power to key industries and nearby communities.:

• CHPP-3 Karaganda Energocenter LLP;
• CHPP-PVS, CHPP-2 of Arcelor Mittal Temirtau JSC;
• CHPP of SSGPO JSC, ERG, Eurasian Group;
• Balkhash TPP, Zhezkazgan CHPP of Kazakhmys Energy LLP;
• CHPP-1 of Aluminium of Kazakhstan JSC, ERG, Eurasian Group and others.

Regionally important power plants, such as CHPPs, serve local areas by providing electricity to regional grids and heat to nearby towns.

Electricity Transmission

Kazakhstan’s electric networks comprise substations, switchgears, and transmission lines ranging from 0.4 to 1,150 kV, facilitating the transmission and distribution of electricity. The National Power Grid (NPG) serves as the backbone, connecting regions and neighboring countries (Russia, Kyrgyzstan, and Uzbekistan) while delivering electricity from power plants to wholesale consumers. KEGOC manages high-voltage substations, switchgears, and interregional transmission lines within the NPG, including those connecting power plants. Regional networks, operated by Regional Electric Network Companies (REC), provide electrical connections within regions and transmit power to retail consumers. Power transmission companies offer electricity transmission services to wholesale and retail consumers through their own or managed networks.

Electricity supply

Kazakhstan’s electricity supply sector is made up of ESOs that buy electricity from a single purchaser or net consumers and sell it to retail customers, with some ESOs acting as guaranteeing suppliers.

Electricity market of the Republic of Kazakhstan

Kazakhstan’s wholesale electricity and capacity market encompasses four key components: the wholesale electricity market, balancing electricity market, capacity market, and system and ancillary services market. The wholesale electricity market facilitates the buying and selling of scheduled electricity volumes, as outlined in the system operator’s daily production-consumption schedule. The balancing electricity market addresses hourly imbalances in real-time, ensuring physical and financial settlements. The system and ancillary services market procures auxiliary services from market entities and provides system services to ensure the reliability and quality of Kazakhstan’s Unified Power System (UPS). The capacity market attracts investments to maintain and develop new electric capacities, meeting demand and ensuring a stable power supply. Centralized electricity trading occurs through electronic transactions between energy producers, a single purchaser, and digital miners. The system operator maintains a list of authorized participants in the wholesale electricity market.

Renewable Energy

Kazakhstan’s renewable energy landscape includes:

• Hydro power: 15 large stations generating 2.25 GW (13% of total capacity)
• Wind power: Government program aims to introduce 2,000 MW by 2030
• Solar power: 51 operational plants, with potential for 2.5 billion kWh annually
• Biomass: Focus on co-firing, district heating, and biofuel production.

²³

Kazakhstan’s renewable energy policy framework includes:

• The 2009 law supporting renewable energy
• Auction mechanisms
• 20-year power purchase agreements
• Tax incentives and investment preferences
• The recently signed strategy for achieving carbon neutrality, outlining a roadmap for the country’s green transition, sector-specific targets, and international commitments.

The UNDP is assisting Kazakhstan in enhancing legislative standards to:

• Reduce investment risks
• Increase investment in renewable energy
• Implement effective policies and programs

This support aims to drive progress towards the country’s renewable energy goals.”

Environmental Code: Kazakhstan’s 2021 Environmental Code introduces Best Available Techniques (BAT) to minimize environmental harm, regulates activities with negative impact, and establishes economic measures like pollution fees. High-emission facilities (>1000 tons) require integrated environmental permits ensuring BAT usage and compliance.²⁴

Fixed tariff :

In 2014, Kazakhstan introduced a special tariff for renewable energy sources, which were still a novel concept in the country at the time. This meant that investors building solar, wind, biogas, or hydroelectric power plants were guaranteed a fixed tariff for 15 years, providing long-term stability and attracting both foreign and domestic companies to the green energy sector. Since 2018, the tariff-setting process has become more transparent, with open electronic auctions determining the winners who can build renewable energy facilities at their chosen location within the republic.¹³

Initiatives:

Kazakhstan is launching a 50-megawatt solar panel production facility using advanced heterojunction technology, aiming to manufacture 300 units this year, scaling up to 30,000 annually. This initiative marks a significant milestone, as similar products are currently only produced in China, Germany, and Japan.⁶

The Kazakh government is actively promoting renewable energy (RE) projects through various incentives, including a single electricity purchase system, tax and customs benefits, and state grants. As of mid-year, the country boasts 133 RE facilities with a total capacity of over 2,500 MW. The introduction of auction bidding in 2018 has sparked increased investor interest, with plans to auction an additional 6,770 MW of RE capacity between 2023 and 2027.²⁵

²⁶

SES Saran Solar PV Park:

• Capacity: 100MW solar PV power project
• Developed by Goldbeck Solar and commissioned in 2019.

M-KAT Solar PV Park:

• Capacity: 100MW solar PV power project
• Developed by Total Eren and operational in 2019.

Nura Solar PV Park:

• Capacity: 100MW solar PV project.
• Developed by Hevel and operational in 2020.

Kapshagay Universal Energy Solar PV Park:

• Capacity: 100MW solar PV project.
• Developed by Universal Energy and came commisioned in 2019.

Balkhash Solar PV Park:

• A 100MW solar PV project located in Karagandy, Kazakhstan.
• Developed by KAZ Green Energy and has been operating since 2022

Otrar (Eni) Solar Farm ²⁷

• Status: Construction
• Capacity: 50 MWac

Globalia Kft Solar Farm²⁸

• Status: Announced
• Capacity: 50 MW
• Commissioning year: 2023 (planned)

• Carer Group: The carer group of companies is a pioneering leader in Kazakhstan’s renewable energy sector, with 8 years of expertise in developing, building, launching, and maintaining solar power plants across the country.²⁹
• EcoNRG: Founded in 2011, ECONRG specializes in the supply and installation of high-quality solar thermal and PV systems in Kazakhstan and the CIS region, offering effective solutions at competitive prices.³⁰
• Universal Energy: Universal Energy (UE) was established under China’s Belt and Road Initiative and Global Emissions Reduction Initiative. With subsidiaries in multiple countries, UE develops renewable energy power plants globally, with a total capacity of 2.5GW as of July 2024. UE has received financial support from various institutions and adheres to international management standards, including ISO certifications.³¹
• GOLDBECK SOLAR: offers a comprehensive package with two core pillars: EPC (engineering, procurement, construction) and O&M (operation and maintenance servicing), ensuring a worry-free solar investment experience, from project realization to long-term system performance.³²
• GreenDem: specializes in designing, assembling, and installing environmentally friendly ‘green’ energy systems on a turnkey basis, providing a comprehensive solution for powering various facilities and equipment. With a wide range of products from top manufacturers, we can tailor our services to meet the unique needs of each customer.³³
• Nurkuat Energy: Nurkuat Energy has specialized in designing and supplying equipment for alternative energy solutions, including installation services. A key focus area is developing and implementing solar and wind energy systems, which are increasingly in demand globally. They offer a comprehensive turnkey solution for these systems, encompassing design and technical documentation, equipment supplies and installation, and grid connection services³⁴
• Samal Energy: provides renewable energy solutions, including design, supply, and installation of solar, wind, and hybrid power plants. They offer wind speed measurement, economic feasibility studies, and payback period calculations. With over 30 successful projects since 2009 contributing to Kazakhstan’s renewable energy development.³⁵