The European Bank for Reconstruction and Development (EBRD) is supporting Kazakhstan’s energy security with a €267mn financing package aimed at enhancing the reliability of its power supply system. The financing will benefit the Kazakhstan Electricity Grid Operating Company (KEGOC), which manages over 27,800 km of transmission lines across the country.
The financing consists of a loan of up to €252mn and a concessional loan of €15mn from the government of Canada under the High Impact Partnership on Climate Action. This support will enable KEGOC to build approximately 600 kilometres of 500kV transmission infrastructure and integrate the West Kazakhstan Power System into the Unified Power System.
The project forms part of Kazakhstan's long-term decarbonisation strategy, which targets carbon neutrality in the power sector by 2060. It will improve power supply to the population in western Kazakhstan and facilitate the integration of up to 12 GW of renewable energy by 2030.
Historically, Kazakhstan's power grid has been divided into three separate electricity systems. While the northern and southern systems were connected in 2004 with EBRD’s support, the West Kazakhstan Power System still operates independently. The new financing will fund the construction of the 500kV Karabatan-Ulke power line along the Atyrau-Aktobe motorway, a 500 kV Karabatan substation, and the expansion of substations at Karabatan (220 kV) and Ulke (500 kV). These upgrades will strengthen domestic interconnections and improve the reliability of power supply across western Kazakhstan.
The project is also expected to reduce annual CO2 emissions by over 200,000 tonnes, contributing to Kazakhstan’s sustainability goals. Additionally, the government of Japan is providing grant funding for the project.
The EBRD will support KEGOC with technical assistance, including the integration of digital technologies into the grid to enhance resilience to potential cyberattacks. A new gender-responsive training initiative will also be introduced.
To date, the EBRD has invested over €10.4bn in 332 projects in Kazakhstan, most of which have supported private entrepreneurship.
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