Kazakhstan will independently construct three thermal power plants after Russia’s Inter RAO failed to secure financing. The $2.2B project will be overseen by Samruk-Energy.
Russia Steps Back from Thermal Power Plant Projects in Kazakhstan. Kazakhstan has officially announced that it will independently construct new thermal power plants (TPPs) in Kokshetau, Semey, and Ust-Kamenogorsk, as Russia is no longer able to provide financing support for the projects. The decision was confirmed by First Deputy Prime Minister Roman Sklyar during a recent briefing.
Previously, the Russian energy company Inter RAO had been designated as the primary contractor for these power plant projects, following an April 2024 agreement between the two countries. The deal, worth $2.2 billion, aimed to build three TPPs with a combined capacity of 1 gigawatt.
However, Inter RAO was expected to secure low-interest export financing, which it failed to arrange.
“Unfortunately, Inter RAO could not secure the necessary financing. Therefore, we decided to move forward with the construction on our own,” Sklyar stated.
Construction Already Underway
The thermal power plant in Kokshetau has already entered an active construction phase, supervised by Samruk-Energy, Kazakhstan’s leading power generation company.
The same approach will be applied to the plants in Semey and Ust-Kamenogorsk. Sklyar emphasized that Kazakhstan remains open to Russian participation in the future, provided that financing issues are resolved.
Market-Based Tariffs
Sklyar also highlighted that the new TPPs will be built without government subsidies, and tariffs will remain within market limits, ensuring the projects remain commercially viable.
Kazakhstan-Russia Energy Agreement
- In April 2024, Kazakhstan and Russia signed an agreement to jointly construct three thermal power plants.
- The total project value was estimated at $2.2 billion, with a combined capacity of 1 gigawatt (GW).
- Inter RAO, a Russian company, was named the primary contractor.
- By May 2024, Sklyar had warned that Russia was struggling to finance equipment supply for the projects.
What Lies Ahead for Kazakhstan’s Energy Sector?
Kazakhstan is moving toward energy independence, with the government taking charge of critical infrastructure projects. While Russia may still participate in the future, Samruk-Energy will lead the construction and financing process for the TPPs.
This decision could attract alternative investors, as Kazakhstan seeks to modernize its power generation sector and meet increasing electricity demand without relying heavily on foreign partners. this article as per caliber and references from kursiv
Key Points at a Glance
- Kazakhstan will independently construct three TPPs in Kokshetau, Semey, and Ust-Kamenogorsk.
- Russia’s Inter RAO failed to secure financing, leading Kazakhstan to proceed alone.
- Samruk-Energy will oversee construction.
- The combined capacity of the plants will be 1 gigawatt, with a total project cost of $2.2 billion.
- The TPPs will operate without government subsidies and with market-based tariffs.
FAQ’s
-
Why is Kazakhstan building thermal power plants without Russian support?
Kazakhstan decided to construct the new TPPs independently because Inter RAO, the Russian company previously assigned as the contractor, failed to secure low-interest export financing for the projects.
-
Which thermal power plants are being built in Kazakhstan?
Kazakhstan is building three new thermal power plants in Kokshetau, Semey, and Ust-Kamenogorsk to meet the country’s growing energy needs.
-
Who is managing the construction of these TPPs?
The construction is being supervised by Samruk-Energy, Kazakhstan’s state-owned power generation company.
-
What is the total investment and capacity of these power plants?
The total investment is $2.2 billion, and the combined capacity of the three plants will be 1 gigawatt (GW).
-
Will Russia still be involved in the future?
Yes, Kazakhstan has stated that if Russia or Inter RAO offers financing in the future, they can still participate as partners.
