The financing framework will support private renewable energy projects in next five years, which will have a total power generating capacity of 300MW.

EBRD will allocate the funds for various clean energy projects that include wind, solar power, hydropower and biogas plants.

Out of the total funding, about €160m has been allocated for the construction of projects for electricity generation,  while the remaining investment will be used for modernization of electricity grid to enable  renewable energy transmission into the national grid.

EBRD Energy and Natural Resources in Russia, Caucasus and Central Asia director Aida Sitdikova said: “The Bank is highly committed to its Green Economy Transition approach in general, and to supporting Kazakhstan’s national strategy of green economy in particular.

“The new framework will be a big step towards meeting Kazakhstan’s commitments to reduce greenhouse gas emissions under the Paris climate agreement. With this financing we are hoping to help establish the market of private developers of renewable energy projects in Kazakhstan.”

Co-financing of the Kazakhstani renewable energy projects is likely to come from the Green Climate Fund, the Clean Technology Fund among other global financial organizations and commercial financiers.

Once commissioned, the projects are likely to cut down CO2 emissions by nearly 600,000 tonnes each year.

EBRD Kazakhstan director Janet Heckman said: “The work of the EBRD in this critical sector was recognised by the Ministry of Energy with a Certificate of Appreciation awarded to the Bank as part of national celebrations of 25 years of independence.”

The EBRD had previously funded the Yereymentau wind farm, Burnoye Solar and other renewable energy projects in the country. It had also supported in the rehabilitation of the Shardara hydropower plant.

Image: EBRD will support renewable energy projects in Kazakhstan with €200m fund. Photo: courtesy of European Bank for Reconstruction and Development.