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01-09 

1 

 

 

 

Article 

Analysis and forecast of renewable energy 

production and investment development in the 

Republic of Kazakhstan 
Mukhtar Saltayevich Yerzhanov, Alma Mukhtarovna Yerzhanova* 

Turan University, Higher School of Finance and Accounting, Almaty, Kazakhstan 

               A R T I C L E   I N F O 
 

Article history: 
Received 10 July 2025  
Received in revised form 
20 August 2025 
Accepted 01 September 2025 
 
Keywords:  
Renewable energy, Energy investment, 
Government support, Republic of Kazakhstan 
 
*Corresponding author 
Email address: 
al.yerzhanova@turan-edu.kz 
 
 
DOI: 10.55670/fpll.fusus.4.1.1 
 

A B S T R A C T 
 

This study examines the structural, financial, and policy dimensions of 
renewable energy development in the Republic of Kazakhstan between 2022 
and 2024, offering projections through 2030. Drawing on national legislation, 
statistical datasets, international benchmarks, and qualitative field insights, it 
evaluates production dynamics across solar, wind, hydro, and bioenergy 
systems. Quantitative analysis reveals a 42.8% increase in renewable electricity 
output over the three-year period, reaching a 6.43% share of total electricity 
generation by the end of 2024, yet still below the nationally mandated targets 
for 2030 and 2050. The paper examines the evolving legal framework that 
supports both utility-scale and distributed energy initiatives, highlighting 
incentives such as auction-based feed-in pricing, tax exemptions, extended 
power purchase agreements, and individual producer rights. It identifies 
systemic barriers, including tariff indexation delays, currency risks, limited 
access to concessional finance, and infrastructure bottlenecks. Financing 
structures dominated by debt instruments and international capital flows are 
mapped through institutional profiles. Comparative policy analysis and 
stakeholder feedback from events like Qazag Green Fest inform a set of 
integrated recommendations, including expanding energy storage systems, 
modernizing grid infrastructure, deploying green taxonomies and investor 
safeguards, and scaling technical education and public awareness campaigns. 
The findings underscore Kazakhstan’s pivotal opportunity to transition toward 
energy sovereignty and climate resilience through coordinated public–private 
strategies, regulatory clarity, and robust investment mechanisms. 

1. Introduction 

Renewable energy is energy obtained from natural 

sources (sunlight, wind, etc.) that are replenished at a rate 

exceeding their consumption. Renewable energy sources 

provide a large amount of energy and are associated with 

much lower emissions. Currently, renewable energy sources 

are a cheaper alternative in many countries than fossil fuels 

(coal, oil, and gas). Renewable resources include solar energy, 

wind energy, geothermal energy, ocean energy, and 

bioenergy. The sustainable development of the global 

economy is closely tied to the effective utilization of the 

advantages of renewable energy. Renewable energy sources 

have become a magnet for innovation and investment. Most 

developed countries have included principles for the 

development of renewable energy sources in their national 

development strategies. Annual investments exceeding $750 

billion have proven the profitability of the future sector. The 

rapid growth of solar, wind, and other types of renewable 

energy has positively affected the sustainability triad: 

economy, social sphere, and ecology. This allows us to 

consider this phenomenon as a factor in creating a new 

energy system and future economy. Just three decades ago, 

the global community considered achieving 10% electricity 

production from renewable energy sources in the total energy 

balance to be an excellent result. At present, this is no longer 

sufficient to ensure energy security and conserve financial 

resources at the macro level. The goal of our research is to 

analyze and assess the level of development and production 

of renewable energy in the Republic of Kazakhstan. Based on 

this goal, the following research tasks have been addressed in 

this article: 

• An analysis of the production and development of 

renewable energy in Kazakhstan over the past three years 

has been conducted. 

Future Sustainability 

Open Access Journal 

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February 2026| Volume 04 | Issue 01 | Pages 01-09 

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MS. Yerzhanov & AM. Yerzhanova /Future Sustainability                                               February 2026| Volume 04 | Issue 01 | Pages 01-09 

2 

 

• Issues of state support and investment in the development 

of renewable energy in the Republic of Kazakhstan have 

been examined. 

• A forecast of further development of renewable energy 

sources (RES) in Kazakhstan until 2030 has been provided. 

Currently, the entire world is facing the challenge of climate 

change, which is one of the most important issues for the 

energy sector. Renewable energy is becoming a viable 

alternative, driven by the growing trend of decreasing 

construction costs for renewable energy stations, which is 

fueled by increased investor demand. The main growth 

drivers are the new strategy, according to Kazakhstan’s 

Concept for Transition to a Green Economy: 

• 10% share of renewable energy sources in total electricity 

production by 2030 

• 50% share of alternative and renewable energy sources in 

total electricity production by 2030 [1] 

In matters of government policy on production and financial 

support for the Republic of Kazakhstan, the experience of 

leading countries such as China and Türkiye is noteworthy. 

The relevance of this study is confirmed by the analysis, 

forecasts, and strategic perspectives for developing 

renewable energy production and promoting investments 

from both the public and private sectors. According to the 

international consulting company PwC, investment in 

renewable energy sources is especially significant for the oil 

and gas and energy sectors. Studying the foreign experience 

of countries using renewable energy sources, in the UK, over 

five years, investments in the green economy yielded 75% 

annual returns, while at the same time, fossil fuels yielded 

8.8%, and in the USA, the figures were 200% and 97.2%, 

respectively [2]. Thus, it is relevant to involve all necessary 

participants in implementing green energy projects, 

particularly small-scale renewable energy projects. This 

study provides a comprehensive analysis and assessment of 

the development level and production of renewable energy in 

the Republic of Kazakhstan. The study methodically examines 

the sector's recent performance and future potential, 

providing a clear and evidence-based outlook. The primary 

research objectives addressed in this article are: 

• To analyze the production and development of renewable 

energy in Kazakhstan over the past three years. 

• To examine the key issues of state support and investment 

in Kazakhstan's renewable energy sector. 

• To provide a quantitative forecast for the development of 

RES in Kazakhstan through 2030. 

The relevance of this study is underscored by the global 

challenge of climate change and the increasing economic 

viability of renewable energy projects. By analyzing recent 

data, evaluating government policy, and forecasting future 

growth, this research offers strategic insights for public and 

private sector stakeholders. The findings contribute to the 

broader discourse on green energy transitions in resource-

rich nations and provide a crucial framework for accelerating 

the implementation of sustainable energy projects in 

Kazakhstan. 

2. Literature review 

The issues of development prospects, government 

support, investment, and financing of projects in the 

renewable energy sector have been studied by well-known 

foreign scholars [3-13]. In the Republic of Kazakhstan, several 

articles have been published in recent years on the challenges 

of developing renewable energy [14,15], including analyses of 

policy and governance hurdles [16-18], financial and 

investment processes impacting renewable projects [19], and 

scenario planning for coal exit and renewable energy 

transitions [20]. Additional studies have explored multi-

criteria decision-making systems for spatial renewable 

energy development in Kazakhstan [21] and evaluated 

renewable versus nuclear resources for electricity generation 

[22]. In determining the stage of emergence and development 

of renewable energy in Kazakhstan, as well as in assessing the 

world experience of leading countries in the use of renewable 

energy, the works of American and European scientists were 

considered. For instance, references [3, 4, 6] examine the 

development of renewable energy and mechanisms for 

stimulating its growth in the USA. Features of targeted 

innovative stimulation of renewable energy use in European 

countries are considered in reference [5]. 

Several researchers emphasized the importance of 

financial support mechanisms for stimulating investment in 

renewable energy. One of the key financial support 

mechanisms is the use of preferential tariffs, tax benefits, and 

tradable “green” certificates [23]. These mechanisms provide 

financial incentives for the development of renewable energy 

sources and help to offset the higher costs associated with 

renewable energy technologies [10]. Recent reviews highlight 

additional innovative financing models, such as concessional 

finance, blended finance, and auctions, which mitigate risks 

and enhance the attractiveness of renewable projects in 

developing countries [24,25]. Policy insights from 

comparative studies in Brazil and Nigeria further underscore 

the role of targeted incentives in overcoming barriers to 

renewable energy financing [26]. Additionally, financial 

investments from both the public and private sectors are 

crucial for expanding renewable energy production capacity 

[9]. Such investments help fund research and development, 

infrastructure development, and the implementation of 

renewable energy projects. Empirical evidence from global 

samples suggests that green bonds, a form of green finance, 

significantly enhance renewable energy production by 

providing dedicated capital flows [27]. 

The role of financial markets in supporting renewable 

energy projects is also significant. Financial market investors, 

including pension funds, insurance companies, and mutual 

funds, utilize renewable energy stock indices to evaluate and 

manage their investments. These indices provide information 

on the financial performance and potential risks associated 

with renewable energy projects, enabling investors to make 

informed decisions [11]. Green finance influences the 

investment behavior of renewable energy enterprises, 

facilitating better capital allocation and risk management 

[28]. Studies on renewable energy investment and green 

economies show that green finance enhances firm-level 

investments, particularly in Asia [29]. Furthermore, the 

creation of a “green” financial system is essential for financing 

green energy projects [12]. The green financial system 

ensures that funds are directed toward sustainable and 

environmentally friendly projects, including renewable 

energy. Such a system can help reduce environmental 

degradation and facilitate investments in clean technologies 



MS. Yerzhanov & AM. Yerzhanova /Future Sustainability                                               February 2026| Volume 04 | Issue 01 | Pages 01-09 

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for renewable energy projects. Research demonstrates that 

green finance not only supports renewable energy 

development but also contributes to climate change 

mitigation by reducing emissions [30,31]. Bibliometric 

analyses reveal evolving trends in energy transitions and 

green finance, emphasizing their interconnected roles in 

sustainable development [32]. The success of renewable 

energy projects depends not only on financial indicators but 

also on non-financial performance measures, such as 

environmental impact, social benefits, and long-term 

sustainability. Assessing these non-financial indicators 

alongside financial ones allows for a more comprehensive 

evaluation of the success and viability of renewable energy 

projects. Critical reviews of competitiveness indicators for 

energy projects stress the need for multi-disciplinary key 

performance indicators (KPIs) that encompass 

environmental, social, and governance factors beyond 

economics [33]. Empirical studies confirm that non-financial 

measures, such as community engagement and ecological 

footprints, significantly influence project outcomes [13]. 

Financial support systems are crucial for the development 

and implementation of renewable energy projects. 

Mechanisms such as preferential tariffs, tax benefits, and 

tradable green certificates provide financial incentives for the 

development of renewable energy sources. To expand 

renewable energy production capacity, financial investments 

are required from both the public and private sectors [9]. The 

role of financial markets in managing investments in 

renewable energy is significant. Additionally, the 

development of a green financial system and the 

consideration of non-financial performance measures are 

crucial to the success of renewable energy projects. For 

instance, segmentation analysis of support mechanisms for 

green hydrogen highlights the efficacy of offtake support and 

infrastructure funding in reducing investment risks [34]. 

Studying the strategies of global leaders in the application of 

renewable energy and in-depth research by prominent 

scholars will help formulate recommendations for adapting 

foreign experience to the development of Kazakhstan’s green 

economy. 

3. Methodology 

3.1 Research design 

This study utilizes a mixed-methods research design, 

combining both qualitative and quantitative approaches. This 

design is most suitable for providing a data-driven and factual 

analysis of the multi-level impact of renewable energy on 

Kazakhstan's economy, foreign policy, and energy security. 

The methodology is specifically structured to answer the 

central research question: How can Kazakhstan enhance its 

capabilities in developing renewable energy? It is also 

designed to test the guiding hypothesis that Kazakhstan’s 

efforts to introduce renewable energy can become a strategic 

turn that will enhance its national influence and security. 

3.2 Data collection and sampling 

Data was gathered using a combination of primary and 

secondary research tools to ensure a comprehensive and 

triangulated perspective. 

Primary data: 

• Expert interviews: We interviewed specialists, such as 

government officials, energy company executives, and 

researchers. These interviews helped us understand what 

influences Kazakhstan's renewable energy plans and how 

diplomacy attracts investment. 

• Surveys: A structured questionnaire was distributed to a 

sample of stakeholders in the energy sector. A purposive 

sampling strategy was employed to target individuals with 

direct experience in renewable energy projects. The survey 

aimed to collect quantitative data on perceived investment 

risks, policy effectiveness, and growth prospects. 

Secondary data: 

• Statistical data: National statistics on energy production 

and investment were collected from official government 

sources of the Republic of Kazakhstan. 

• Document analysis: Policy documents, legal acts, and 

reports from international organizations like IRENA were 

systematically reviewed to provide context and 

quantitative benchmarks. 

3.3 Data analysis 

The collected data were analyzed as follows: 

• Qualitative analysis: Thematic analysis was the method 

used to analyze data from expert interviews and policy 

papers. This process involved identifying, coding, and 

understanding recurring ideas and trends related to 

Kazakhstan's energy diplomacy, foreign relations, and its 

utilization of renewable energy in its policies. 

• Quantitative analysis: The study used descriptive statistics 

like frequencies, means, and percentages to analyze survey 

responses and national data. Trend analysis was also 

applied. This quantitative method helped find key patterns 

in renewable energy growth and supported the qualitative 

results with statistical backing. 

By integrating the findings from both qualitative and 

quantitative analyses, this study provides a robust and 

multifaceted response to the research question. 

4. Analysis and discussion 

The pathways and prospects for developing renewable 

energy sources in the Republic of Kazakhstan are defined by 

the Ministry of Energy of the Republic of Kazakhstan. The Law 

of the Republic of Kazakhstan on the Support of Renewable 

Energy Sources provides definitions and types of renewable 

energy sources. Renewable energy sources (RES) are sources 

of energy that are continuously renewed by naturally 

occurring processes. They include the following types: solar 

radiation energy, wind energy, hydrodynamic energy of 

water, geothermal energy (heat from soil, underground 

water, rivers, and reservoirs), and anthropogenic sources of 

primary energy resources, such as biomass, biogas, and other 

fuels derived from organic waste used for producing 

electricity and/or heat. The legislative acts of Kazakhstan play 

a significant role in the development of renewable energy 

sources. The existing legislation is attractive for investors, 

including private investors and international financial 

institutions. However, to stimulate the electricity market, it is 

necessary to consider several additional recommendations 

and proposals from experts and scientists. To achieve the 

goals set under the Paris Agreement by 2050, the installed 

capacity of renewable energy facilities must increase by a 

factor of 10. This is the forecast provided by the International 

Renewable Energy Agency (IRENA). Despite commitments 

made by countries to limit the rise in global average 



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temperature, current investments in construction and 

development of green technologies may be insufficient to 

reach stated objectives. An indispensable part of a country's 

green ecosystem is its green taxonomy. The green taxonomy 

has several priority tasks, as highlighted in the UNDP 

Information Package for implementing small-scale renewable 

energy projects in Kazakhstan. Figure 1 illustrates these main 

objectives [2]. 

Renewable energy projects are included in the list of priority 

investment projects. Previously established investment 

preferences have been supplemented with benefits, including 

exemptions from the following taxes: land tax, property tax, 

and corporate income tax. In Kazakhstan, the duration of 

contracts for guaranteed electricity buyback by the RES 

operator has been extended to 20 years. A comprehensive 

analysis of Kazakhstan’s renewable energy market was 

performed, drawing on research by the international auditing 

firm PwC. Project-level evaluations indicate that the 

predominant financing structure for renewable energy 

projects in Kazakhstan follows a 70/30 split, with 70% of 

costs funded through debt financing, primarily loans. 

Development banks play a pivotal role in financing these 

projects, as detailed in Table 1. Banks Involved in Renewable 

Energy Financing, which outlines the key financial 

institutions supporting the sector’s growth. Despite the active 

development of the RES market in the Republic of Kazakhstan 

and strong legislative support, renewable energy still faces 

many challenges that restrict sector growth. One of the key 

limiting factors is investment risk. Several major reasons that 

hinder investment growth in the sector have been identified. 

The most critical among them are shown in Figure 2. This 

study examined how investment in Kazakhstan's renewable 

energy sector affects electricity production from renewable 

sources. The renewable energy facilities in Kazakhstan 

include wind (WPP), solar (SPP), small hydro (HPP), and 

biofuel power plants (BioPP). Table 2 shows data on 

electricity production from renewable energy sources in 

Kazakhstan. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1. Banks involved in renewable energy financing 

 

From Table 2, it can be seen that by the end of 2024, the 

share of electricity generated from RES in Kazakhstan’s total 

production was 6.43%. The growth in RES share compared to 

2022 was 42.8%. If such growth rates are maintained, the 

2030 target is achievable. Electricity production from RES in 

Kazakhstan is generated by small hydro plants, wind farms, 

solar farms, and biogas installations. Detailed breakdown by 

source is provided in Table 3. 

Table 2. RES electricity production in Kazakhstan, 2022–2024 [16] 

Year Total RES Production Share of RES in Energy 
Structure (%) 

2022 5,110.7 4.5 
2023 6,675.5 5.92 
2024 7,581.33 6.43 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Amount 
(billion KZT) 

EBRD (European Bank for 
Reconstruction and Development) 

162 

DBK (Development Bank of 
Kazakhstan) 

67 

China Development Bank 29 

DBK Leasing 22 

ADB (Asian Development Bank) 21 

GCF (Green Climate Fund) 10 

EDB (Eurasian Development Bank) 15 

AIIB (Asian Infrastructure Investment 
Bank) 

14 

Green Climate Fund 10 

ICBC 6 

 

Figure 1. The main objectives of the “green” taxonomy [2] 

 

 

Figure 2. Reasons Hindering Investment Growth in RES [1] 



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According to Table 3, Kazakhstan had 148 RES 

installations by the end of 2024, with a combined capacity of 

3,032.11 million kWh. This includes: 

• 59 wind energy facilities with 1,520.05 million kWh 

capacity 

• 46 solar energy facilities with 1,222.61 million kWh 

capacity 

• 40 small hydro facilities with 287.68 million kWh capacity 

• 3 bioenergy facilities with 1.77 million kWh capacity 

In 2024, amendments were made to the Law of the Republic 

of Kazakhstan regarding support for the use of renewable 

energy sources and energy. According to this law, the 

population, farming households, and small and medium-sized 

enterprises are now allowed to generate electricity 

independently and sell it. Every citizen of Kazakhstan is 

permitted to install renewable energy systems with a capacity 

of up to 200 kilowatts and sell any surplus electricity 

generated by these systems. When evaluating the profitability 

of installing such renewable energy systems, several factors 

are essential: 

• Location for solar panels (intensity of solar radiation and 

number of sunny days per year) 

• Location for wind turbines (wind availability and speed) 

• Cost of the renewable energy installation 

• Household electricity consumption patterns 

All of these factors determine how much surplus electricity 

can be supplied to the grid. Based on Kazakhstan’s legislative 

acts and academic research, we identified the following 

additional recommended support measures for RES: 

• Mandatory connection of renewable energy installations to 

transmission or distribution grids 

• Priority and compulsory transmission of electricity 

generated from RES 

• Mandatory purchase of electricity produced using RES by 

individual consumers through the Unified Settlement 

Center 

• Exemption of RES producers from paying transmission 

taxes and elimination of licensing requirements for 

electricity production 

Table 3. Electricity Production by RES Type in Kazakhstan (2022–

2024) (millions of kWh) [16] 

 

Practices from developed countries for supporting RES 

could be adapted and implemented in Kazakhstan. However, 

this requires a comprehensive approach: 

• Evaluation of energy output from RES and associated costs 

• Development of subsidy mechanisms and investment 

attraction strategies for sector development, considering 

the country’s limited resources 

• Creation of special investment funds to support subsidies 

In Kazakhstan’s case, the low energy efficiency of many 

buildings and the aging energy infrastructure, much of it from 

the Soviet era, must be considered, as it requires 

modernization. Therefore, evaluating locations where active 

use of small RES installations by individuals and their 

electricity contributions to the grid would not overload the 

system is crucial. 

To effectively use small-scale RES installations, individuals 

need basic technical knowledge. Thus, RES distribution 

programs should include training and awareness initiatives 

on the operational features of such energy systems. 

Kazakhstan’s RES sector receives active government support. 

Currently, government support includes: 

• Guaranteed electricity buyback at auction price 

• Annual indexation of tariffs 

• Exemption from grid fees 

• Investment preferences 

These policies foster a favorable investment climate, support 

the development of new projects, and ensure the sustained 

growth of green energy in the country’s overall energy 

balance. To enhance government support for RES projects, a 

scientific approach is needed in their implementation and 

development. A transparent and predictable tariff policy is 

essential, as is creating conditions for broader private-sector 

participation in RES construction and operation. 

Kazakhstan’s government has stressed the inadmissibility of 

administrative barriers that deter investors and hinder 

project realization. Kazakhstan has committed to achieving a 

15% share of electricity production from RES by 2030 and 

increasing that share to 50% by 2050. The country has a vast 

territory, it’s the ninth largest in the world, and possesses 

77% of Central Asia’s solar energy potential and 90% of the 

region’s wind energy potential. However, much of this 

potential remains underutilized, as Kazakhstan still relies 

heavily on Soviet-era energy infrastructure geared toward 

fossil fuels. For example, in 2024, the country’s electricity was 

generated as follows: 

• 66% from coal 

• 21% from natural gas 

• 6.6% from hydroelectric power 

• Only 6.4% from RES 

This scenario demands substantial investment in RES 

development and modernization of the grid infrastructure. 

Several Kazakh researchers emphasize the importance of 

developing renewable energy, as RES plays a crucial role in 

addressing global challenges—such as energy, 

environmental, and food security [3,5-8]. RES project support 

systems are essential for successful development and 

implementation. These include: 

• Banking initiatives: energy loans and project financing 

• The role of financial institutions and investment companies 

in backing RES 

• Public-private partnerships in RES financing 

• Challenges and opportunities for financial support of RES 

enterprises 

 Year Small 
HPP 

# WPP # SPP # BioPP # 

2022 260,00 37 948,00 46 1148,00 44 1.77 3 

2023 269.61 39 1394.6 57 1202,60  45  1.77  3 

2024 287.68  40  1520,05  59  1222.61  46  1.77  3 



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Kazakhstan’s commitment to using renewable energy sources 

is reinforced through the National Action Plan for Renewable 

Energy Development. This comprehensive strategy outlines 

ambitious targets and policy frameworks to facilitate RES 

deployment. Preferential tariffs and other incentive schemes 

have attracted investment and created a supportive 

environment for renewable energy projects. Furthermore, 

regulatory frameworks shed light on government 

investments and subsidies that drive sector growth. 

Securing financial support is the cornerstone of 

renewable energy projects. Banks were the first to offer 

energy loans and project financing options, aiding RES 

implementation. Financial institutions and investment 

companies now collaborate to provide innovative funding 

models. Public-private partnerships have emerged as a viable 

pathway, highlighting the collaborative approach needed for 

a sustainable energy transition. Nevertheless, challenges in 

securing financial backing remain, necessitating strategic 

solutions for overall sector development. 

5. Project financing, foreign investment, and risk 

mitigation 

In Kazakhstan, the primary financing scheme comprises 

approximately 70% debt financing. In terms of the number of 

projects, nearly two-thirds are implemented by Kazakhstani 

investors. However, around 60% of all installed RES capacity 

is financed by foreign investors, since they tend to be more 

interested in undertaking large-scale projects. Kazakhstan is 

actively developing international cooperation and attracting 

investments in the RES sector, particularly in solar and wind 

energy projects. This supports the successful implementation 

of large-scale RES projects across various regions of the 

country. Currently, the main investors in RES projects in 

Kazakhstan are development banks and foreign investors. 

Foreign investors aim to stabilize the legislative framework 

and contractual conditions as they stood at the time 

investment obligations were undertaken. Such stability 

allows them to clearly understand and confidently assess 

their future commitments, responsibilities, and risks. RES 

projects in the Republic of Kazakhstan frequently utilize 

project finance structures, which combine debt and equity 

financing. This enables investors to share risks and 

participate effectively in the implementation of projects. 

Renewable energy projects require significant upfront 

investment. Because most of these projects are financed 

through loans from international organizations in foreign 

currency, currency fluctuations can result in substantial cost 

increases in the local currency, the Tenge (KZT). This is 

precisely why the tariff indexation mechanism was 

introduced to make projects more attractive to investors. 

However, there remains a risk of delayed tariff indexation, 

which may result in losses for investors, particularly if 

production costs rise and the tariff remains unchanged after 

project launch. 

RES projects often have long payback periods, which 

raise risks for investors, especially in volatile economic 

conditions. Project financing is vulnerable to political 

interference. Additionally, legislative changes may 

significantly affect a project's financial outlook. Therefore, 

investors need to account for political risk before committing 

to obligations. Such factors represent serious challenges for 

investors, especially when planning and implementing 

renewable energy projects. In general, Kazakhstan’s 

renewable energy sector presents several unique features 

and opportunities that make it attractive for project financing. 

6. Proposals and recommendations 

Analysis of actual data for the years 2022–2024 and 

forecast analysis through 2030 has shown that there are 

several problems and challenges in implementing and 

developing RES in the Republic of Kazakhstan: 

• Dependence on weather conditions 

• Legislative framework 

• Generation instability 

• Outdated coal-fired power plants 

• Shortage of professional specialists 

• Financial risks for investors 

Restraining factors in the development of RES in Kazakhstan’s 

energy market were thoroughly discussed at the 3rd 

International Business Festival (Qazag Green Fest). As a result 

of this forum, a number of recommendations were provided, 

which we also support: 

• Review and adopt a Strategy for the development of the 

electricity sector in Kazakhstan through 2030 

• Expand joint training and retraining programs with foreign 

universities for specialists in the energy sector 

• Develop markets for bilateral renewable energy contracts 

• Promote further incentives for small-scale RES 

• Improve the tariff indexation mechanism for RES projects 

• Strengthen informational support for RES development 

• Exclude RES installations from the list of terrorist-

vulnerable facilities 

In our view, possible solutions for advancing production and 

investment in the renewable energy sector include: 

i. Development of energy storage capacities and systems: To 

stabilize the energy system, energy storage systems should be 

developed and implemented. These systems will accumulate 

excess electricity generated by RES and release it into the grid 

during peak consumption periods. 

ii. Regulatory mechanisms: Introduce step-by-step regulatory 

mechanisms governing the integration of new RES 

installations into the national energy system and determine 

the priority order for electricity transmission from various 

generation sources during peak loads and demand drops. 

iii. Infrastructure and technology development: In order to 

make RES a competitive sector of the economy, it is necessary 

to have not only natural resources and sales markets. 

Development of related industries, such as manufacturing, 

transportation, and electricity sales, is also crucial. Attention 

should be given to creating industrial clusters that provide a 

full cycle: from design and component manufacturing to 

recycling of decommissioned RES equipment. Developing 

domestic infrastructure and technologies for solar and wind 

generation will help reduce dependence on imports, lower 

production costs through scale effects, reduce electricity 

tariffs, and make RES more accessible, while also creating 

new jobs and contributing to Kazakhstan’s economic growth. 

iv. Investor protection mechanisms: To protect investors 

from risks (e.g. delayed indexation, electricity price drops, or 

increases in capital and operating costs during RES project 

implementation), there is a need to create government-

backed or private guarantee systems. 



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7 

 

v. Implementation and expansion of educational programs 

and specialist training in the RES sector: Introducing relevant 

educational programs and training a sufficient number of RES 

specialists is a key task for industry development. Such 

specialists include solar and wind energy designers, 

operations engineers, and meteorological energy analysts. 

Currently, Kazakhstan’s Ministry of Science and Higher 

Education funds 18 programs in energy and energy efficiency. 

Eight of these programs are specifically focused on the 

development of renewable energy. Promoting green energy 

disciplines among young people will foster the development 

of renewable energy in Kazakhstan and help achieve global 

goals related to climate change and environmental protection. 

7. Conclusion 

We have presented information about various financial 

support systems available for renewable energy projects in 

Kazakhstan. With a clear understanding of these support 

mechanisms, potential investors can make informed 

decisions, contributing significantly to the country’s goals in 

renewable energy and a sustainable future. Although 

challenges remain, the future of renewable energy in 

Kazakhstan is optimistic. By addressing regulatory 

difficulties, investing in research and development, and 

improving financial support mechanisms, Kazakhstan can 

overcome its obstacles and continue progressing toward a 

sustainable energy future. Through collective efforts of 

government bodies, private enterprises, and the public, the 

republic can not only achieve its renewable energy targets but 

also become one of the leading countries in the RES sector, 

paving the way for a greener and more sustainable future. The 

article reviewed the development system of production and 

investment support for renewable energy sources in 

Kazakhstan. Several key findings and recommendations were 

made that underscore the pivotal role of renewable energy 

sources. Investment support programs for RES development 

have significantly boosted the growth of solar and wind 

energy projects. These efforts not only reduce CO₂ emissions 

but also stimulate economic growth, create jobs, and enhance 

the country’s energy security. Regulatory challenges, 

technological limitations, and financial barriers must be 

addressed through coordinated efforts involving government 

agencies, businesses, and research institutions. Government 

bodies play a central role in shaping the future of renewable 

energy. Clear and consistent policies, streamlined regulatory 

processes, and incentives for research and innovation are 

imperative. Government authorities should also focus on 

raising public awareness, promoting environmental 

responsibility, and cultivating a culture of energy efficiency. 

Companies can contribute to investments and growth in the 

RES sector. Investing in research and development is 

especially important. Collaborating with international 

partners and participating in public-private partnerships can 

accelerate the adoption of advanced renewable energy 

solutions. Moreover, companies should actively engage with 

the public, informing communities about the benefits of RES 

and sustainable practices. Involving communities in dialogue, 

addressing concerns, and highlighting the tangible benefits of 

RES projects fosters a sense of ownership and pride. 

 
 

Ethical issue 
The authors are aware of and comply with best practices in 
publication ethics, specifically with regard to authorship 
(avoidance of guest authorship), dual submission, 
manipulation of figures, competing interests, and compliance 
with policies on research ethics. The authors adhere to 
publication requirements that the submitted work is original 
and has not been published elsewhere. 

Data availability statement 
The manuscript contains all the data. However, more data will 

be available upon request from the authors. 

Conflict of interest 

The authors declare no potential conflict of interest. 

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