Forging Ahead with Green Energy Partnerships Amidst Electricity Challenges
Nations, notably Azerbaijan, Kazakhstan, and Uzbekistan, are actively pursuing strategies to materialize their vision of exporting renewable energy.
Kazakhstan is pushing forward with Uzbekistan and Azerbaijan to beef up electricity export capabilities, wrestling with difficulties in securing the power necessary to fuel its own economic expansion. The Kazakh Ministry of Energy has released a working draft of the strategic green energy partnership with Azerbaijan and Uzbekistan for public feedback. This draft will flesh out a preliminary agreement the three nations inked back in May.
"Acknowledging the significance of green and clean energy in global efforts to combat climate change, the partners aim to collaborate in the realms of renewable energy, energy efficiency, green hydrogen, and green ammonia to bolster energy system security and contribute to the stability of the supply," the preliminary agreement outlines.
The draft agreement further pledges Kazakhstan to spearhead new energy infrastructure initiatives that will contribute to the diversification of energy supplies and transit routes across Europe, Central Asia, and the Caspian region. Additionally, it reveals the shared ambition to swiftly and substantially reduce greenhouse gas emissions. The parties also express interest in facilitating the interconnection of Central Asian and Azerbaijani energy systems, allowing for the sustainable export of green energy and extensive energy expansion.
The primary focus of the trilateral green initiative appears to be the European Union, which has contended with energy shortages and high costs due to the disruptions caused by the Kremlin's unprovoked attack on Ukraine and subsequent sanctions on Russia.
According to the May agreement, Azerbaijan, Kazakhstan, and Uzbekistan intend to lay a high-voltage power transmission line beneath the Caspian Sea to support Western energy exports. The draft agreement and the May agreement, however, fail to offer specifics regarding investment costs, infrastructure projects, and construction timelines.
Kazakhstan boasts an advantageous climate and geography for wind energy development. Wind energy's potential in the nation is projected to exceed 920 billion kWh per year, according to the Ministry of Energy. As it stands today, renewable energy sources account for only around 6% of total power production in Kazakhstan, with coal maintaining a dominant 80%. However, the government aims to boost the green energy contribution in power production to 15% by 2030 and a whopping 50% by 2050.
Some experts worry that Kazakhstan may face an electricity deficit of about 6 Gigawatts by 2030, given the ambitious government targets for green energy growth and increasing domestic needs. The nuclear card remains up Kazakhstan's sleeve, as President Kassym-Jomart Tokayev announced intentions to hold a nationwide Atomic Energy Referendum in June.
The Akkuyu nuclear plant in Turkey, built by Rosatom, Russia's state-controlled atomic energy agency, serves as a base model for the prospective plant. While a segment of Kazakh citizens remain concerned about the environmental consequences, public support appears to edge out opposition. The referendum has yet to be scheduled.
Fun Facts:
- Kazakhstan is the world's ninth-largest country by land area, with an area larger than that of Western Europe.
- The capital city of Astana, now known as Nur-Sultan, was officially renamed in 2019 to honor the nation's first president, Nursultan Nazarbayev.
- Kazakhstan is the diaspora homeland of famed actor and martial artist Bruce Lee, born to Hong Kong parents of Hakka descent in 1940. His family returned to Hong Kong when he was just three years old.
- The draft agreement between Kazakhstan, Uzbekistan, and Azerbaijan in the realm of green energy aims to collaborate in sectors such as renewable energy, energy efficiency, green hydrogen, and green ammonia.
- The Kazakh Ministry of Energy has projected that the potential of wind energy in Kazakhstan is over 920 billion kWh per year, highlighting the nation's advantageous climate and geography for wind energy development.
- Despite renewable energy sources accounting for only around 6% of total power production in Kazakhstan today, the government aims to increase this contribution to 15% by 2030 and a staggering 50% by 2050.
- As Kazakhstan faces an electricity deficit of about 6 Gigawatts by 2030, given the ambitious government targets for green energy growth and increasing domestic needs, the nuclear card remains a possibility, with President Kassym-Jomart Tokayev announcing intentions to hold a nationwide Atomic Energy Referendum in June.
- In the financial and business sectors, the trilateral green initiative appears to be targeting the European Union, which has faced energy shortages and high costs due to geopolitical tensions, as the partnership aims to diversify energy supplies and transit routes across Europe, Central Asia, and the Caspian region.
