EBRD contributing to modernisation of Kazakhstan national grid

• EBRD lending up to KZT 102 billion to Alatau Zharyk Company
• Loan will help the major private electricity distributor to upgrade its infrastructure
• Funds will also support procurement of smart meters and efficiency improvements

The European Bank for Reconstruction and Development (EBRD) is contributing to Kazakhstan's grid modernisation plans by supporting a long-term investment programme of Alatau Zharyk Company (AZhC), a regional electricity distribution company supplying power to approximately four million people and around 50,000 commercial consumers in Almaty city and the region.

The EBRD’s long-term loan of up to KZT 102 billion (€194 million equivalent) will help AZhC - a fully owned subsidiary of Kazakhstan’s largest diversified energy holding company, Samruk Energy - to procure automated metering and telemechanic equipment, as well as to upgrade its low- and medium-voltage electricity transmission and distribution infrastructure.

This is the latest EBRD-supported operation under Kazakhstan’s National Project for the Modernization of Energy and Utility Sectors (MEKS), a government-led programme designed to modernise networks and facilities for heat, electricity, water supply and sewerage, to ensure reliable, high-quality services for residents and sustainable economic development.

By supporting MEKS, the EBRD is helping to address critical bottlenecks in Kazakhstan's energy grid, which has more than 24 GW of installed generation capacity and stretches for more than 470,000 sq. km, making it one of the world’s largest grids.

The project will support further digitalisation of AZhC through the installation of smart meters at substations and the implementation of pilot smart grid technologies. It will also help to strengthen AZhC’s cybersecurity and contribute to corresponding efforts at Samruk-Energy level.

The modernisation is expected to help deliver annual electricity savings of approximately 22 GWh and a reduction in annual CO2 emissions of around 12,000 tonnes. It will also help to encourage further renewable energy growth in the Almaty region.

In line with a five-year enhanced partnership framework agreement between Kazakhstan and the EBRD, the project will support the development of Alatau city through the reconstruction of the Zhetygen electricity substation and an associated 110 kV transmission line, helping to secure reliable electricity supply for this flagship smart city development initiative.

The EBRD has invested almost US$ 13.6 billion (€11.7 billion) in Kazakhstan to date through 358 projects, making the country the largest and longest‑running recipient of EBRD investment in Central Asia.