Loan to Sagat Energy will finance launch of 11MW gas-fired power plant
The European Bank for Reconstruction and Development (EBRD) is continuing to support the Green Economy drive in Kazakhstan by financing a new, cleaner and more energy-efficient gas-fired electricity generating plant in Atyrau, a harbour city on the Caspian Sea and a regional capital in western Kazakhstan.
The EBRD is providing a five-year loan in the local currency, tenge, for the equivalent of $5.9 million to Sagat Energy, a private company registered in Kazakhstan. The loan will finance the remaining construction works and the connection to the power transmission grid, as well as the commissioning and launch of the commercial operation of a modern gas engine-based 11MW combined heat and power plant in the city of Atyrau in western Kazakhstan.
Kazakhstan is still largely dependent on coal for electricity production but the Atyrau oblast is one of only a few regions where the domestic gas supply is also available for power generation. Gas is significantly cleaner than coal in terms of CO2 emissions.
Aida Sitdikova, EBRD Director for Energy and Natural Resources in Russia, Central Asia and the Caucasus, said: “The Bank’s loan will support a private and independent operator of a highly efficient grid-connected gas-fired power plant and will set a benchmark in terms of efficiency and environmental standards in the region and in support of the government’s efforts to increase energy efficiency levels in the country.”
Janet Heckman, EBRD Director for Kazakhstan said: “Savings from energy efficiency are a key objective of both the EBRD and the government of Kazakhstan. This project exemplifies the importance of energy efficiency.”
The power plant is based on the latest technology and is in line with the European Union’s best available techniques for electricity efficiency, as well as the recommended level of pollutants of flue-gas emissions. The electricity transmission system in the Atyrau region will also benefit from a flexibly loaded gas-engine power plant located next to a transmission substation, making it more stable.
The EBRD is one of the largest financial investors in Kazakhstan.