Kazakhstan is stepping up its efforts to diversify an energy system still heavily reliant on fossil fuels, with a new platform designed to channel billions of euros into renewable power and grid modernisation. The initiative, known as QaJET, aims to mobilise around €18 billion in public and private investment, with the European Bank for Reconstruction and Development (EBRD) playing a key supporting role.
Fossil fuels currently account for roughly 85% of the country's electricity generation, according to data from LowCarbonPower. To change that, Kazakhstan needs not only new wind and solar capacity but also significant upgrades to its transmission and distribution networks, as well as measures to cushion the social impact on regions dependent on coal.
A platform for a just transition
QaJET, which stands for Kazakhstan Just Energy Transition, is already operational and is scheduled for an official launch at COP31 in Antalya, Türkiye, in November. The platform is designed to align with Kazakhstan's long-term climate goals, including carbon neutrality by 2060 and a pledge to cut net greenhouse gas emissions by up to 25% by 2030 compared with 1990 levels, subject to international support.
According to the platform's investment breakdown, roughly half of the funding — about €8.7 billion — is earmarked for developing 10 GW of new renewable energy capacity by 2035. A further quarter, around €4.35 billion, will go towards integrating renewables into the power system and improving its reliability. The remaining quarter is set aside for electrification in transport, industry and small and medium-sized enterprises, alongside upgrades to electricity networks and smart energy systems.
The initiative is expected to reduce annual greenhouse gas emissions by more than 20 million tonnes, equivalent to around 7% of Kazakhstan's energy-related emissions.
Projects already in the pipeline
QaJET already includes projects worth more than €1 billion. One flagship is the Mirny wind farm in the Zhambyl region, scheduled to enter operation in 2028. With a capacity of 1 GW and 150 turbines, the project will also include a battery energy storage system of 600 MWh. Developed by TotalEnergies and its Kazakh partners, it is expected to generate around 4 TWh of renewable electricity annually, sold to Kazakhstan's state-owned Financial Settlement Centre for Renewable Energy under a 25-year agreement. The project is projected to avoid up to 3.5 million tonnes of carbon dioxide emissions each year.
A second project focuses on modernising electricity distribution infrastructure in Almaty and the surrounding region. The EBRD is providing a loan of up to 102 billion tenge (€194 million) to Alatau Zharyk Company, which serves around 50,000 commercial customers. The funding will support the installation of automated metering and remote-control equipment, as well as upgrades to low- and medium-voltage networks.
Addressing the human side of the transition
Beyond infrastructure, Kazakhstan faces the challenge of preparing its workforce for a post-coal economy. Saule Sabieva, Climate Policy Director at the Ministry of Ecology and Natural Resources, acknowledged the scale of the task: “We are a carbon-dependent country, with large combined heat and power plants and power stations. These facilities and the energy networks need to be modernised. Workers in the energy sector also need to be retrained as part of the energy transition.”
The government is seeking support from international partners, including the European Union, the United Kingdom, the Green Climate Fund, the Global Environment Facility and the Climate Investment Funds. Before major changes are implemented, QaJET's partners are expected to assess the regions most exposed to decarbonisation risks and identify ways to ensure people have access to new economic opportunities. Sabieva identified Karaganda, North Kazakhstan and East Kazakhstan as likely to face some of the greatest challenges.
Attracting investment and overcoming barriers
The EBRD says Kazakhstan has many of the prerequisites for expanding renewable energy, including strong natural resources and a government willing to improve the regulatory environment. Yerlan Ramazanov, the EBRD's Deputy Head of Kazakhstan and Regional Head of Energy, pointed to regulatory changes, competitive auctions and long-term power purchase agreements as factors helping to attract investors. These agreements provide greater predictability for developers and help lenders assess risks. Referring to the electricity buyer, Ramazanov said: “Over 11 years of experience, I would say that the agreements are being honoured and the off-taker is paying in full and on time.”
Renewable energy auction tariffs have fallen since the system was introduced in 2018, and local companies are increasingly involved in building and operating projects. However, several obstacles remain. Ramazanov highlighted limitations in grid capacity and stability, as well as the challenge of balancing supply as more renewables come online. The EBRD is already working with officials to develop a regulatory framework for battery storage and pumped-storage projects.
For investors, stable rules and a clear long-term outlook are crucial. Kazakhstan's push to attract €18 billion in cleaner energy investment is a test of whether a resource-rich country can navigate the complexities of a just transition — one that balances environmental goals with economic and social realities. As the country prepares for COP31, the world will be watching whether QaJET can deliver on its promises.
