Kazakhstan’s Power Grid Revamp Secures €267 Million Backing from EBRD and Canada

The European Bank for Reconstruction and Development (EBRD) has announced a €267 million financing package for the Kazakhstan Electricity Grid Operating Company (KEGOC) to enhance the reliability of the country’s power supply system.

The funding comprises a €252 million EBRD loan and a €15 million concessional loan from the Government of Canada. The financial support will enable KEGOC, which oversees more than 27,800 kilometers of overhead transmission lines, to construct approximately 600 kilometers of 500 kV transmission infrastructure. This will facilitate the integration of the West Kazakhstan Power System into the country’s Unified Power System.

The initiative is part of the EBRD’s broader efforts to assist Kazakhstan in implementing its long-term decarbonization strategy, aimed at achieving carbon neutrality in the power sector by 2060. It will improve the electricity supply for residents in western Kazakhstan and enable the integration of up to 12 GW of renewable energy capacity nationwide by 2030.

Currently, Kazakhstan’s power grid is divided into three separate systems. While the EBRD connected the northern and southern grids in 2004, the West Kazakhstan Power System remains isolated.

The project includes the construction of the 500 kV Karabatan-Ulke power line along the Atyrau-Aktobe motorway, the 500 kV Karabatan substation, and the expansion of the switchyards at the Karabatan (220 kV) and Ulke (500 kV) substations. These upgrades will strengthen domestic interconnections and enhance power supply reliability in western Kazakhstan.

In addition to infrastructure improvements, the project is expected to reduce annual CO2 emissions by over 200,000 tons. It is supported by grant funding from the Government of Japan.

The EBRD will also provide KEGOC with technical assistance, including piloting digital technologies within the grid, bolstering the system’s resilience to potential cyberattacks, and introducing gender-responsive training programs.

Sergey Kwan

Sergey Kwan

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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