Astana (TDI): Kazakhstan’s Ministry of Energy and the Asian Development Bank have signed a landmark memorandum of understanding (MoU), taking a critical step towards early coal plant retirement as part of ADB’s Energy Transition Mechanism (ETM) program.
The MoU commits both parties to jointly work towards a pilot project that could substantially reduce Kazakhstan’s greenhouse gas emissions by decommissioning selected coal plants.
The aim is to replace them with renewable or lower-carbon energy sources, or potentially repurpose them for alternative energy technologies.
A comprehensive feasibility study will assess which coal-fired power, combined heat and power plants, and heat-only boilers could feasibly undergo early retirement.
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In addition to decommissioning coal plants, ADB and Kazakhstan’s Ministry of Energy have pledged to assess the potential impacts on Kazakhstan’s energy supply, boost renewable energy capacity, and strengthen regional energy trade initiatives.
Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, underscored the urgency of moving away from fossil fuels, citing the global 1.5°C target.
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“Our ETM program is designed to help countries transition toward clean energy in a way that considers their unique energy and socioeconomic needs. ADB, as the climate bank for Asia and the Pacific, is committed to helping Kazakhstan transition its economy towards decarbonization.”
Minister of Energy Almassadam Satkaliyev acknowledged that Kazakhstan must adopt a new strategy that integrates power, heating, and water sectors as part of a single technological framework.
“We look forward to ADB’s expertise in ensuring the reliability of these new systems through ETM. Our hope is to create a model that can be replicated at other sites and across regions.”
Kazakhstan Ranks 8th Globally in Coal Reserves
Kazakhstan, which ranks eighth globally in coal reserves with an estimated 25 billion tons, currently relies on coal for around 70 percent of its electricity.
Its energy sector, including electricity and heat production, contributes to over 80 percent of the nation’s greenhouse gas emissions.
The country’s long-term goal of achieving carbon neutrality by 2060 includes reducing fossil fuel dependency and expanding renewable energy generation, aligning closely with the ambitions set out in its collaboration with ADB.
