The Asian Development Bank (ADB) and Kazakhstan Electricity Grid Operating Company (KEGOC) have formalized a financing agreement valued at KZT 58.2bn ($123mn). This deal will fund the expansion of Kazakhstan’s high-voltage transmission network in the southern region, bolstering the integration of large-scale renewable energy sources into the grid.
The financing will be allocated for constructing 500 kilovolt (kV) overhead transmission lines and modernizing the Shu, Jambyl, and Shymkent 500 kV substations. These upgrades are anticipated to boost transmission capacity by 75%, mitigate overloading issues, and cut transmission losses, enhancing the stability of energy supplies and improving Kazakhstan’s energy security.
"ADB’s collaboration with KEGOC will play a crucial role in helping Kazakhstan meet its net-zero emissions goals. By advancing the energy transition and renewable energy targets, this project will modernize the grid, reduce power transmission losses, and address economically harmful outages,” stated Suzanne Gaboury, ADB Director General for Private Sector Operations. “Our support also includes promoting gender-inclusive workplace practices, encouraging women’s careers in the energy sector, and offering capacity building and technical advice on integrating renewable energy into the grid.”
Since 2017, ADB has been actively involved in improving grid infrastructure in Central West Asia through its Knowledge and Support Technical Assistance program.
KEGOC, founded in 1997, operates Kazakhstan’s Unified Energy System (UES). It plays a pivotal role in shaping the nation’s future energy system and market amid the ongoing energy transition. KEGOC focuses on developing sustainable electricity infrastructure and advancing clean energy. The Sovereign Wealth Fund, Samruk-Kazyna, is KEGOC's majority shareholder.
Established in 1966, ADB is dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while striving to eradicate extreme poverty. The bank comprises 68 members, including 49 from the region.
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