Kazakhstan next in line for Energy Transition Mechanism

The ETM aims to accelerate the transition from fossil fuels to clean energy by retiring existing coal-fired power plants and replacing or repurposing the sites into generators of renewable energy.

The Kazakhstan Ministry of Energy signed a memorandum of understanding (MOU) with ADB in November 2024 to work towards a pilot decommissioning or repurposing of a coal power plant.

A pre-feasibility study, funded partially by $225,000 provided by ADB, has identified coal power plants for retirement in Kazakhstan and defined the scope a full feasibility study.

Further analysis of the impact on power and heat supply, the development of renewable energy capacity and the promotion of regional energy trade were also included in the MOU.

James Harris, an expert on renewable energy at Pinsent Masons, said: “A successful entrance into Kazakhstan will give the ETM more market credibility.”

“To meet targeted emission reduction goals, Kazakhstan will have to reduce its reliance on fossil fuels and introduce new renewable energy projects,” he said.

“Kazakhstan has abundant resources for renewable energy, particularly wind, but has seen a slow uptake in recent years.”

Kazakhstan is a major producer of fossil fuels and is the one the largest producers of coal worldwide.

The country also recently announced the creation of a nuclear energy agency after a 2024 referendum was held over the construction of a nuclear power plant, with over 70% of voters in favour of the adoption of nuclear technology.

After launching in 2021, the ETM has been introduced or is planned as a pilot in several countries, including Vietnam, the Philippines, Singapore and Pakistan.

Over 50% of greenhouse gas emission originate in the Asia-Pacific region, while 25% of global emissions come from coal-fired powerplants.