The Dilemma of Long-Term Development of the Electric Power Industry in Kazakhstan

Elena Vechkinzova,Gaukhar Koshebayeva,Yelena Petrenko,Yana S Matkovskaya

doi:10.3390/en14092374

Abstract

This article discusses the current state and trends in the development of the electric power industry in Kazakhstan. An analysis of the energy supply and energy intensity of Kazakhstan’s GDP is provided in this paper. The results of the foresight of the risks and opportunities of the energy industry are described. This study identifies the relationship between the traditional development of the energy industry and the development of alternative energy sources. In addition, the work examines the risks and consequences of various trends in the development of national and global energy. Previous studies have shown that government efforts are insufficient in developing an alternative energy sector in Kazakhstan. The research results show that there is a need to transform energy production from traditional sources towards greater efficiency and environmental friendliness, as well as the active involvement of the business community in the development of an alternative energy market. This is expected to attract more investments and transfer technologies to maintain the country’s position in the energy market of the future.

Highlights

In 1996, Kazakhstan became one of the first states of the former Soviet Union to begin reforming the existing energy sector and transition to a market economy
We aimed to study the directions of development of the electric power industry in Energies 2021, 14, 2374
Despite the active progress of Kazakhstan on the path of diversification, energy resources will remain of primary importance for its economy

Summary

Introduction

In 1996, Kazakhstan became one of the first states of the former Soviet Union to begin reforming the existing energy sector and transition to a market economy. Using the British and Norwegian electricity markets as models, the government dissolved the existing vertically integrated state monopoly, splitting it into separate electricity management and business management companies. More than 85% of the electricity sector has been privatized [1]. The privatization of Kazakhstan’s energy sector is almost complete, the sale of regional distribution companies has been slower. Kazakhstan’s energy sector continues to be under tight government regulation and price controls, and relations between the Eurasian Natural Resources Corporation and international investors are unsatisfactory. There is a high degree of wear and tear of the main equipment of power transmission organizations and regional power grid companies, as well as a significant number of unattended power grid facilities

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Conclusion