EBRD expands funding for renewable energy programme in Kazakhstan

NUR-SULTAN – The European Bank for Reconstruction and Development (EBRD) will provide additional funds of up to $328 million to support Kazakhstan as a regional leader in the development of renewable energy through the second phase of its renewable framework, reported the bank’s press service.

The framework programme supports the implementation of projects in the field of solar, wind, hydro and biogas energy as well as electricity distribution and transmission projects. The projects are expected to reduce carbon dioxide emissions by at least 500,000 tonnes per year.

“The EBRD Board of Directors approved the extension to the existing framework, which has been almost fully utilised. The first phase supported the creation of 262 megawatt of renewable power-generation capacity across the country, attracted four private international investors and supported a grid-strengthening project,” reads the bank’s release. 

Also, the framework programme will be supported by concessional financing from the Green Climate Fund (GCF). It will be supported by comprehensive technical assistance to support competitive tendering for wind energy projects, the development of carbon markets and promotion of gender equality in the renewable energy sector.

The Kazakh Ministry of Energy and the EBRD confirmed in September the bank’s commitment to supporting renewable energy projects in Kazakhstan “focusing on financing competitively tendered renewables projects.”

The renewables framework in Kazakhstan will help achieve its 3 percent renewable energy targets by 2020 and 50 percent by 2050 and fulfil its obligations as part of the Paris Climate Agreement.

Overall, the EBRD has invested more than $9.1 billion through 262 projects in the Kazakh economy. More than $2.2 billion were allocated for Green Economy Transition (GET) projects. The GET approach was launched to assist countries where the bank operates to build low carbon and resilient economies. 

The EBRD is the largest international investor in the country’s economy outside the oil and gas sectors with a wide presence in Kazakhstan with two offices in Nur-Sultan and Almaty and five local offices in remote regions.

Get The Astana Times stories sent directly to you! Sign up via the website or subscribe to our Twitter and Telegram!