Story by Hazel Correa, USAID | Photos and Video by Bobby Neptune for USAID
Although Kazakhstan has an abundance of fossil fuels, the government is committed to a green economy. “We are making a statement that there is a better way forward,” adds Arman. “It will set an example for the rest of the region and the world.”Although Kazakhstan has an abundance of fossil fuels, the government is committed to a green economy. “We are making a statement that there is a better way forward,” adds Arman. “It will set an example for the rest of the region and the world.”
In 2018, USAID helped introduce auctions that enable the Government of Kazakhstan to buy renewable energy from companies and investors bidding on contracts.
“Auctions have helped to establish fair prices and lower the electricity costs for utilities and consumers. It has also made the process more transparent and attractive to private investors,” says Arman.
Arman feels the need for his generation to act now: “Renewable energy is the key to the transition to sustainable energy generation and to keeping the planet safe for our children and for future generations.”
About This Story
USAID has partnered with Kazakhstan since the 1990s to encourage private investment in the power sector and generate low-cost energy using a mix of energy resources – particularly wind, solar, hydro, and biomass. For the two decades after the country’s independence, USAID’s energy programs focused on pilot projects to demonstrate the benefits of energy saving and energy efficient systems, and tariff planning to cover costs, maintenance, and upgrades to aging energy infrastructure.
In 2014, the Government of Kazakhstan introduced a feed-in-tariff mechanism program to attract investment in renewable energy sources. In 2018, USAID helped introduce renewable energy auctions. From 2018 to 2020, USAID supported Kazakhstan to leverage nearly $2 billion in private investment, resulting in about 60 new renewable energy projects that will reduce Kazakhstan’s carbon dioxide emissions by 11 million tons—the equivalent of taking 2 million cars off the road for a year.