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By Mirlan Aldayarov, Istvan Dobozi, Thomas Nikolakakis

The large-scale transformation of Kazakhstan’s strength area following independence in 1991 was once mirrored by way of the country’s movement towards liberalizing the marketplace and imposing quarter law. As an early adopter of a liberalized multimarket version together with bilateral, spot, balancing, ancillary, and means submarkets Kazakhstan’s strength zone was once appeared a industry reform chief between international locations of the previous Soviet Union, having completed a miles more advantageous provide and insist stability and repair caliber.

However, regardless of the noteworthy headway, quarter reforms stay predominantly as unfinished enterprise. the surplus new release ability that was once inherited from the previous Soviet Union at a time while the “energy-only” industry costs have been too low to draw critical traders has masked the necessity to give some thought to the long term outlook of the country’s strength production.

As the funding crunch opened up within the mid-2000s, a diverging predicament presently arose; that's, the ability additions of current and deliberate generations will not be enough to maintain velocity with the perpetuating and important raise within the call for for strength. rather than utilising marketplace mechanisms to permit costs to upward push and mirror the underlying provide and insist hole, the GoK addressed the difficulty through imposing administrative, command-and-control measures.

This research attracts at the international Bank’s long-standing engagement in Kazakhstan’s strength quarter and a couple of fresh technical tips and advisory aid actions. The learn goals to (i) objectively determine the relevant demanding situations confronted by means of the Kazakhstan energy quarter in its ongoing transition and outlining power coverage recommendations; and (ii) draw classes from Kazakhstan’s event in region reforms for the wider foreign viewers.

The learn covers broader zone matters together with long term least-cost strength method making plans, offer and insist balancing, tariff environment, industry constitution, and integration of renewable strength.

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