Azernews.Az

By Aynur Karimova

Kazakhstan will establish an energy efficiency fund, which will become a tool for supporting energy service companies by allocating them credits and loans on preferential terms.

This remark was made by Albert Rau, Kazakhstan's Deputy Investment and Development Minister, at a press conference in the Central Communications Service under the president.

"Currently, works on the establishment of an energy efficiency fund are already being conducted together with the World Bank and the United Nations Development Program," he said. "This will give additional impetus for the development of this sector in Kazakhstan. In this regard, we should follow the example of Europe, in particular Germany, which has made significant progress in the field of energy saving."

According to the "100 concrete steps" plan voiced by President Nursultan Nazarbayev, one of the important directions of Kazakhstan’s industrial development is the reduction of energy intensity in the gross domestic product of the country.

In this regard, the government plans to introduce energy service contracts that will save significant budget funding thanks to lower energy consumption. Currently, about 100 companies in Kazakhstan are entitled to conduct an energy audit.

Rau noted that based on the results of an energy audit, each company is obliged to make a plan to improve energy efficiency and reduce energy consumption.

He went on to add that the World Bank has allocated a grant worth $21 million to the development of pilot projects on energy efficiency. "It is about 90 schools and hospitals in different regions. Currently, development of project documentation is underway."

Rau also said that energy service companies can be investors in the field of energy efficiency of Kazakhstan as well.

"This is the leasing of equipment, the leasing of a lighting system. It means that a company comes and installs, upgrades the elements of electrical systems by its own means. And it receives the profit from the actual energy savings. For example, today the school is allocated 1 million tenges per month for heating, tomorrow a company-investor comes, installs energy-saving boiler, after which costs amount to almost 800,000-900 tenges. The government will continue to allocate 1 million tenges, while the investor receives savings," he explained.

Kazakhstan is among 10 countries with the highest levels of energy intensity. According to the International Energy Agency, the modernization of the Kazakh economy will be in line with a serious reduction in energy consumption.

Clean energy is a very important issue for Kazakhstan and Central Asia as whole, where it is of particular relevance. The country plans to implement 106 renewable energy projects by 2020 – 34-wind farm, 41 hydropower plant, 28 solar power plant, and three biogas plant projects.

Energy-rich Kazakhstan is currently looking for ways to use its renewable energy sources. In late January, an action plan was adopted on the development of renewable energy for the period of 2013 to 2020.

Kazakhstan enjoys real opportunities to improve energy efficiency in all sectors of the economy. The country is also taking important steps in the development of renewable energy sources and increasing the number of environmental measures.

Given Kazakhstan's natural conditions, it is clear that the most promising alternative energy sector is wind power. Relevant studies conducted in the Central Asian state's regions showed that wind power generation has vast potential.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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