A $25 million project for a 50MW wind power plant that will serve as a financial, technical, and regulatory pilot for scaling up renewable energy in Kazakhstan’s economy while providing emission reductions.
Kazakhstan has an economy heavily supported by fossil exports and mostly powered by traditional fossil fuel energy. The country has set the ambitious targets of 1 GW of newly installed renewable energy by 2020 and to derive half of its energy from renewable energy by 2050. Kazakhstan seeks to utilize CIF investments to make the transition to a low-carbon economy and begin harnessing its wind resources.
The Program is a country-specific strategy to support the scaling up of the first large-scale wind power plan in Kazakhstan. The power plant will have an installed capacity of 50 MW with a site size allowing an expansion of up to 300 MW. The package includes technical assistance and project financing. CTF is allocating $24.3 million in concessional loans and $0.574 million for advisory services and knowledge management, and project implementation and supervision services.
Objectives and Outputs:
The expected emission reductions of over 120,000 tCO2/year will support the Government’s efforts to move towards a green growth model for the country’s economy. The project will deliver CO2 emission reductions of up to 3.3 MtCO2 over its lifetime at a relatively high level of abatement costs of $30/tCO2eq. Additionally, the newly generated supply of carbon credits will be critical to jumpstart the carbon trading market currently being launched in Kazakhstan.
The project aims to have a significant demonstration effect to potential developers and private sponsors by testing the successful implementation of large wind power in Kazakhstan. This project is important for establishing the reference basis to learn practical lessons from the planning and implementation process to develop further the required enabling framework. Furthermore, the project will result in large volume of CO2 emissions reductions, by replacing electricity produced from low-efficiency obsolete coal-fired power stations.
This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.
Cover Note | Project Document | Expert Review | Proposed Decision
Approved on April 29, 2014 (Approved Decision)
USD 20.20 (concessional loan)
USD 100,000 (grant funding)
USD 474,000 (MPIS)