ASTANA – The development of alternative energy sources in Kazakhstan does not necessitate substantial government investments. Instead, market incentives play a much more important role than funding, reported Kazinform.
Visualization of large-scale wind farms and solar PV farms in Kazakhstan. Photo credit Svevind Energy.
Energy Supply Association Chair Sergei Agafonov noted that Kazakhstan is only at the beginning of developing alternative energy sources beyond renewables. However, the country is drafting a law on alternative energy. The initiative is supported by the Ministry of Energy and Kazenergy Association.
The expert said Kazakhstan has opportunities to utilize low-potential heat, including waste heat and wastewater, through heat pumps. The country may also benefit from landfill and metallurgical gases for electricity and heat production. Agafonov pointed out that a facility in Pavlodar already uses gas from petroleum coke production for power generation. Also, nuclear energy offers long-term economic benefits, and using low-potential heat could provide more cost-effective heating solutions for distant consumers.
Investment approaches vary by sector. Agafonov noted hydrogen energy requires venture capital to lower production costs, while nuclear power demands large-scale, long-term investment. Waste heat recovery and industrial gas utilization, he said, could be supported by an energy service company (ESCO) market, where private investors fund projects in exchange for cost savings.
Regulatory changes are seen as key to unlocking alternative energy development. According to Agafonov, energy producers currently lack economic incentives to improve fuel efficiency, as costs are passed on to consumers.
“The government could set efficiency targets for energy producers and require them to hold regular tenders among ESCO firms to utilize waste heat, directly reducing energy consumption,” he said.
Agafonov believes Kazakhstan will expand its use of nuclear, hydrogen, and waste-based energy solutions. He suggested that by 2045, low-potential heat could account for 20 percent of the heating market, while industrial waste gases could be fully integrated into energy production.
The full story was originally published in Kazinform.
