Decarbonization - The Times Of Central Asia

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Renewable energy

TotalEnergies Launches Wind Farm Project in Southern Kazakhstan

French energy company TotalEnergies has launched construction of the Mirny wind farm, a 1-gigawatt renewable energy project in Kazakhstan’s Moyinkum District in the Zhambyl Region. Once completed, the facility is expected to become one of the largest wind power installations in Central Asia. The project provides for the installation of around 150 wind turbines supplied by Envision and SANY. It will also include a 600-megawatt-hour energy storage system developed by the French battery manufacturer Saft, designed to improve grid stability and optimize power distribution. Total investment in the project is estimated at about $1.1 billion. The wind farm is scheduled to be commissioned in the fourth quarter of 2028. Annual electricity generation is projected to reach up to 4 billion kilowatt-hours, which could reduce carbon dioxide emissions by at least 3.2 million tons per year. Kazakhstan’s authorities view the expansion of renewable energy as a key component of efforts to reduce the country’s carbon footprint. National greenhouse gas emissions stood at 375.4 million tons in 2020, declined to 328.4 million tons in 2021, and rose again to 353 million tons in 2022, according to previously reported data. The energy sector remains the largest source of emissions, accounting for approximately 281.9 million tons of greenhouse gases in 2022. The Ministry of Energy has said the TotalEnergies project will contribute to the development of green energy, strengthen energy security, and support the country’s broader decarbonization goals. Authorities also plan further expansion of renewable capacity. Ten new projects with a combined capacity of 245 megawatts are expected to be launched this year, covering wind, solar, and hydroelectric generation. Together with existing facilities, they are projected to produce around 8.8 billion kilowatt-hours of electricity. In addition to the Mirny wind farm, other major renewable initiatives involving foreign investors are underway. These include a $1.4 billion wind power project backed by the United Arab Emirates’ Masdar, as well as wind and solar developments led by China Power and China Energy in several regions. Competitive auctions remain the main mechanism for expanding renewable energy capacity. Kazakhstan plans to allocate 6.7 gigawatts of new capacity through auctions between 2024 and 2027. In the longer term, the government aims to bring more than 8 gigawatts of renewable energy capacity online by 2035. As previously reported by The Times of Central Asia, officials have also said the country intends to eliminate its electricity deficit and begin exporting power by 2027.

Green Energy

Astana Forum Signals Growing Momentum for Green Projects

Kazakhstan is positioning itself as a regional hub for green energy, with hydrogen emerging as a central focus. This direction was highlighted at the Second Central Asian and European Forum on Decarbonization Diplomacy, where hydrogen featured prominently on the agenda. At the forum, the Ministry of Energy presented an updated Concept for Hydrogen Energy Development aimed at attracting investment and laying the groundwork for the country’s first large-scale hydrogen projects. “By the end of this year, we expect to adopt legislation that will provide the foundation for hydrogen energy development in Kazakhstan. For us, this is not merely a goal, it is a strategic choice, just like green energy more broadly. Forums like this one help transform ideas into tangible partnerships,” said Deputy Energy Minister Ilyas Bakytzhan. The central question raised at the forum was how to convert growing interest into actual investment. Institutions including the World Bank, European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), United Nations Development Programme (UNDP), and the International Renewable Energy Agency (IRENA) expressed willingness to consider pilot projects in Kazakhstan. However, experts warned that financial commitments will depend on the establishment of long-term hydrogen supply contracts and a transparent certification framework. [caption id="attachment_36294" align="alignnone" width="300"] Deputy Energy Minister Bakytzhan Ilyas, @gov.kz[/caption] While viable business models are still evolving, Kazakhstan has the potential to become a key hydrogen supplier to Europe and Asia. In the early stages, however, building domestic demand, in sectors such as metallurgy, transportation, and energy, will be critical. A balanced strategy that prioritizes both export orientation and local industrialization is seen as essential for long-term project sustainability. Forum participants identified several key challenges: High capital requirements and extended payback periods Integration with renewable energy infrastructure Exposure to volatile global pricing and certification standards The need for green financing tools and risk insurance mechanisms A significant development at the forum was the signing of a cooperation agreement between Kazakhstan’s Ministry of Energy and the Hydrogen Diplomacy Office (H2-Diplo GIZ). The agreement provides access to European technical expertise and advisory support, including the design of financing structures. Experts agree that the next few years will be decisive. Kazakhstan must show that it can provide a stable and predictable investment climate. The Astana forum made clear that international institutions and private investors are already showing interest. The determining factor now will be the quality and credibility of the regulatory framework the country establishes.

Decarbonization

Kyrgyzstan Approves Plan to Achieve Carbon Neutrality by 2050

On July 3, Kyrgyzstan’s Cabinet of Ministers approved the Concept for Achieving Carbon Neutrality of the Kyrgyz Republic along with the action plan for its initial implementation phase. The approval marks a significant step in the country’s climate policy, setting long-term guidelines for sustainable development and signaling Kyrgyzstan’s political commitment to global climate goals. The concept outlines a phased transition to a carbon-neutral economy, targeting key sectors such as energy, transport, industry, agriculture, waste management, and forestry. It aims to reduce greenhouse gas emissions, promote renewable energy, enhance energy efficiency, restore forest ecosystems, adopt digital and innovative technologies, and integrate climate risk into state planning processes. The government sees the concept as a foundation for attracting climate finance, creating green jobs, and ensuring environmental security for future generations. It also reinforces Kyrgyzstan’s status as an active and responsible participant in the international climate framework under the Paris Agreement. Kyrgyzstan has pledged to achieve carbon neutrality by 2050, a commitment first announced by President Sadyr Japarov at the 2021 World Leaders Summit during the UN Climate Change Conference in Glasgow. The country has also set a target to reduce greenhouse gas emissions by 44% by 2030.

Oil and Gas

Kazakhstan Agrees to Increase Oil Transit Through Azerbaijan

Kazakhstan’s KazMunayGas and Azerbaijan’s SOCAR have agreed to increase the transit of Kazakh oil through the Aktau-Baku-Ceyhan route in 2025. The decision was made during a meeting in Baku between KazMunayGas Chairman Askhat Hasenov and SOCAR President Rovshan Najaf, where they reviewed progress on the 2022 oil transportation agreement. At the end of 2024, the volume of Kazakh oil transported through Azerbaijan reached 1.4 million tons. Under the new plan, this figure is set to increase to 1.7 million tons in 2025. The expansion will enhance the transit potential of both Kazakhstan and Azerbaijan, while boosting Kazakhstan’s access to global energy markets. Focus on Decarbonization and Energy Cooperation During the talks, the two companies also discussed their strategic partnership on decarbonization, which was formalized at the 29th UN Climate Change Conference (COP-29) in Azerbaijan. The agreement focuses on: Introducing low-carbon technologies in the oil and gas sector. Reducing harmful emissions from energy production. Additionally, discussions covered joint exploration projects, oil and gas production, investment opportunities, and the digitalization of industrial processes. “SOCAR is a key partner of KazMunayGas. Together, we will continue to contribute to global energy security and the stability of hydrocarbon supplies. This partnership will create new transit opportunities through the Caspian region,” said Hasenov. Kazakhstan and Azerbaijan’s Broader Cooperation Beyond oil transit, Kazakhstan and Azerbaijan recently signed an agreement to construct an underwater fiber-optic communication line across the Caspian Sea. The deal was finalized during Kazakh Prime Minister Olzhas Bektenov’s recent visit to Baku. This project, along with the expanded oil transit, highlights the deepening economic and strategic partnership between the two Caspian nations.