Facts about Kazakhstan
Why you should invest in renewable energy and Kazakhstan
Kazakhstan is the country of green energy sources. Kazakhstan is the ninth largest country in the world with an area of 2,724,900 square kilometers. The country has great potential for the development of renewable energies. Energy consumption in the country is increasing and hence the demand for green energy and energy efficiency. It has 300 sunny days per year – the average solar radiation per year is between 2200 and 3000 hours and 1300-1800 kW per m³ per year. The solar energy potential is 3.76 TWh.
In addition to the high potentials of solar energy Kazakhstan offers a lot in the field of wind energy. The average wind speed is 4-5 m per second in half of the country. Especially in the south and east of the country the potential is great with 1.8 TWh. By 2030, the wind energy potential exceeds predicted power consumption by 10 times. The technical potential for wind energy generation is 354,000 MW. On the right side you can see the wind park in Ereymentau. To get information about the projects of renewable energy plants click on projects.
As of 2020, 5% of waste products will be used to generate electricity from biomass. The planned usage is up to 300 MW. The main hydropower resources are in located in the east and southeast of the country. Hydropower plants generated 7.9% of the country’s electricity in 2014. Energy production from small hydropower plants should be increased up to 4800 MW.
Kazakhstan is very open to foreign partners. The country has very low sovereign debt and high foreign exchange reserves. Kazakhstan has the most efficient economy among the 5 Central Asian CIS republics. In addition, the political situation is stable, and the business infrastructure is well developed. The investment climate is constantly being modernized by improving the legal base and introducing new mechanisms for government support to investors – both financially and legally, and with the help of advice.
Competitive advantages through new sales market for technology and know-how
Kazakhstan is a new market for renewable energy technologies. There is an enormous import and development demand for proven technologies such as photovoltaic systems, wind energy and hydropower. There is a shortage of skilled workers in the technical field, as there are hardly any specialized courses of study, especially for the installation and use of renewable energies. Foreign companies can offer solutions for professionals from technical know-how to complex project management and thus have a clear competitive advantage.
Kazakhstan’s political will to develop renewable energy is also reflected in the law of “Republic Kazakhstan” from January 8th, 2003 No. 373-II. In the energy sector for power generation and distribution, all investors are entitled to invest in any projects, unless explicit restrictions have been published by the legislator.
In addition, the law guarantees the following rights:
- Legal protection for investments
- Compensation for unlawful acts of public officials
- Use of profits at its own discretion after paying taxes
- Expropriation or nationalization of investments is only carried out in exceptional cases and for reasonable compensation in the amount of the market value
- Exemption from customs duties for the import of preferred goods
Subsidization in certain cases is also possible and takes place by means of so-called natural subsidies such as land, buildings, facilities, machinery, equipment and means of transport. Foreign employees of priority investment projects do not need a work permit for Kazakhstan. Tax reductions for investment projects in the tax law and are also enshrined in law.