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Context
Kazakhstan’s renewable energy capacity has expanded rapidly in recent years, but renewables still accounted for less than 7 per cent of total electricity output at the end of 2025. Progress has been constrained by structural barriers rather than a lack of resource potential or political commitment. Key obstacles have included an embedded dependency on fossil fuels, limited grid capacity to absorb rising renewables output, and an underdeveloped legal and regulatory framework that did not sufficiently encourage privately financed renewable energy projects.
To tackle these challenges and meet its goal of carbon neutrality by 2060, Kazakhstan has put in place a national programme to modernise grid infrastructure and signed a memorandum of understanding on creating the Just Energy Transition country platform for Kazakhstan (QaJET). QaJET is designed to mobilise large-scale investment in climate resilience, energy security and the country’s decarbonisation objectives. Its aims for 2035 include supporting the deployment of at least 10 GW of renewables, mobilising US$ 20 billion in investment and reducing annual greenhouse gas emissions by more than 20 million tonnes.
Driving change: EBRD contributions and results
The EBRD has taken a holistic approach to supporting Kazakhstan’s development of renewable generation and infrastructure, including:
• strengthening grid and distribution networks
• helping to shape the enabling framework for competitive, transparent renewable energy auctions and power purchase arrangements (PPAs)
• broader renewable sector policies to crowd in private investment.
This is embedded in the Bank’s Kazakhstan Renewables Framework, co-funded by the Green Climate Fund. Launched in 2016 and expanded into a second phase in 2019, the framework provides a platform to finance renewable energy generation and grid integration, and complements these investments with policy and technical support.
Through the framework, the EBRD has supported an increase in renewable capacity across the country, including a portfolio of utility‑scale wind and solar projects, as well as strengthened grid infrastructure. By the end of 2025, the framework had backed nine renewable energy projects with total capacity of 496 MW, having attracted four new international private investors in the first phase.
In parallel, the project has supported the development of Kazakhstan’s policy framework for renewable energy, including strengthening auction design, improving PPA provisions – such as extending renewable PPA contracts from 15 to 20 years – and supporting site-specific wind auctions. Two wind auctions, for a combined 150 MW, under the new auction design were completed in 2022 and delivered record-low prices for wind power. The new PPA framework also enabled the launch of a competitive reverse auction mechanism for renewables in 2018.
Collectively, these changes boosted the bankability of renewable projects and reduced risks for private investors by improving revenue predictability, decreasing currency-related risks and strengthening payment security for renewable projects. All of this has helped to lower financing costs and enable more competitive auction pricing. The changes have also strengthened the creditworthiness of the country’s sole renewable energy offtaker, the Financial Settlement Centre for Renewable Energy (FSC).
The improved operating environment helped to secure the 2026 signing of the landmark 1 GW Mirny wind energy project, which is integrated with 600 MWh of battery storage. The scale of the project reflects not only the expansion of Kazakhstan’s renewable energy ambitions, but the growing confidence of financiers and partners in the country.
| What was done | What was achieved | Systemic change |
|---|---|---|
| Financed a diversified portfolio of utility‑scale solar and wind projects with domestic and international sponsors. | Energy portfolio now includes 888 MW of additional installed renewable capacity, with agreements signed for a further 1 GW. Wind farms and solar plants have been developed across the country to support regional access to renewables. | Enabling policy reforms to help generate bankable projects, supporting the mobilisation of private investments at scale. |
| Policy engagement to enhance the legislative and regulatory framework for bankable PPAs. | Improved bankability of renewable projects thanks to longer PPAs, indexation to currency and consumer price index (CPI) changes, reverse auctions and the enhancement of the FSC’s creditworthiness. | A more enabling environment for private-sector participation thanks to a reduction in investment barriers and the enhancement of PPAs. |
| Preparation of site-specific wind auctions for three utility-scale wind projects. | Two auctions were successfully completed for a total of 150 MW in 2022, delivering record‑low wind prices. Follow‑on technical cooperation is under way to support up to 1 GW of site‑specific wind and battery energy storage projects. | Predictable and enabling environment for auction processes, helping attract international investors for the implementation of large-scale renewable projects. |
Systemic change
Kazakhstan’s renewable energy sector has undergone a market-wide transformation over the past five years.
Early EBRD‑supported projects demonstrated that utility‑scale renewable energy could be commercially financed, constructed and operated in a market with limited prior experience of privately financed clean energy. By providing proof of concept, these projects helped reduce perceived execution and policy risks, and helped to boost confidence among investors, lenders and policymakers.
As market activity and confidence continued to increase, competitive procurement processes evolved and private‑sector participation expanded. Kazakhstan’s auction system matured, including a shift towards site‑specific auctions and the preparation of pilot auctions combining wind generation with battery energy storage. From the introduction of competitive auctions in 2018 to June 2025, Kazakhstan held competitive tenders totalling 5,725 MW and successfully awarded 5,195 MW, with strong participation from domestic and international developers, such as TotalEnergies, and a marked decline in tariff levels, reflecting increased market maturity and competition.
Improvements to the PPA framework, as well as the foreign‑exchange and CPI indexation of feed-in tariffs and auction tariffs, and stronger institutional backing of the FSC have reduced key revenue and currency risks across the market. By improving predictability, limiting exposure to currency volatility and lowering financing costs, these changes have enabled more competitive auction outcomes and reduced reliance on concessional finance. The result has been a shift from demonstrating that renewable energy is feasible in Kazakhstan to establishing conditions under which it can scale up sustainably, supported by growing private investment and an increasingly competitive market structure.
What made it work: success factors, partnerships and lessons learned
The government’s strong commitment to decarbonisation and renewable deployment created space for policy reform and partnership. It also enabled close cooperation with government institutions, the grid operator, renewable developers and concessional finance partners, amplifying the impact of the EBRD’s work and ensuring it aligned with national priorities.
The sequencing of investment and reform, the framework approach and targeted risk-reduction measures were critical to crowding in private capital.
Lessons learned included:
- Combining finance with policy dialogue and technical assistance delivers stronger systemic results than standalone investments.
- Reforms that support project bankability are as important as resource potential in attracting private capital.
- Grid integration must be addressed early to avoid bottlenecks as renewable penetration rises.
- Demonstration projects can unlock broader policy and market confidence.