EBRD, DBK Support Project to Consolidate Kazakhstan’s Energy System
Summary
ASTANA Kazakhstan Electricity Grid Operating Company (KEGOC) signed loan facility agreements with the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Kazakhstan (DBK) to implement a project on consolidating Kazakhstans power system.According to the DBKs press service, funds of up to 32 billion tenge (US$61 million) will be allocated for the construction of the 500 kilovolt (kV) Karabatan-Ulke transmission line (along the Atyrau-Aktobe highway) and the 500 kV Karabatan substation, as well as for the expansion of switchgear at the Karabatan (220 kV) and Ulke (500 kV) substations. This will significantly strengthen local power flows and improve the reliability of power supply in Western Kazakhstan.The combined efforts are aimed at modernizing Kazakhstans energy system and its adaptation to the modern challenges, including the transition to sustainable and environmentally friendly energy sources, said DBK Chair Marat Yelibayev.The EBRD arranged a financial package to KEGOC consisting of a bank loan of up to 252 million (US$280.5 million) and a concessional loan of 15 million (US$15.75 million) from the government of Canada under the High Impact Partnership on Climate Action, reported the EBRDs press service on Dec. 3.It will allow KEGOC, which operates more than 27,800 kilometers (km) of overhead transmission lines across Kazakhstan, to construct around 600 km of 500 kilovolt (kV) of transmission infrastructure and to facilitate integration of the West Kazakhstan Power System into the countrys Unified Power System.The project is part of the EBRDs efforts to help Kazakhstan implement its long-term decarbonization strategy to achieve carbon neutrality in its power sector by 2060. It will improve power supply for the population in western Kazakhstan and facilitate the integration of up to 12 gigawatt (GW) of renewables by 2030 across the country, reads the EBRDs statement.It will also help address the historical division of Kazakhstans power grid into three separate electricity systems. The new infrastructure will strengthen domestic interconnections and enhance the reliability of power supply in western Kazakhstan.The project is expected to reduce annual CO2 emissions by more than 200,000 tons. It is supported by grant funding from the government of Japan.The EBRD will also provide KEGOC with technical assistance to pilot integration of digital technologies into the grid, strengthen the companys resilience to potential cyberattacks and introduce a new gender-responsive training.To date, the EBRD has invested more than 10.4 billion (US$10.9 billion) in 332 projects in Kazakhstan, with most of those funds supporting private entrepreneurship.