ADB And KEGOC Sign $123 Million Deal To Boost Kazakhstan’s Renewable Energy Grid

The Asian Development Bank (ADB) and the Kazakhstan Electricity Grid Operating Company (KEGOC) have signed a significant financing agreement of 58.2 billion tenge (approximately $123 million) to advance the high-voltage transmission network in southern Kazakhstan. This initiative is set to enhance the integration of large-scale renewable energy into the grid, reinforce the stability of power transmission in the region, and bolster Kazakhstan’s energy security.

The financing will facilitate the construction of 500-kilovolt (kV) overhead transmission lines and the upgrading of key substations in Shu, Jambyl, and Shymkent. These upgrades are expected to increase transmission capacity by 75%, reduce transmission losses, and eliminate overloading, leading to improved stability of energy supplies.

ADB’s Director General for Private Sector Operations, Suzanne Gaboury, emphasized the importance of this partnership. “ADB’s collaboration with KEGOC will help Kazakhstan meet its net-zero emissions goals and advance its renewable energy targets. This project will modernize the grid, enhance its capability for integrating utility-scale renewable energy, and reduce power transmission losses and economically harmful outages,” Gaboury said.

In addition to infrastructure improvements, ADB will assist KEGOC in adopting gender-inclusive workplace standards and supporting women in the energy sector. The bank will also provide technical advice on renewable energy grid integration and capacity building.

Since 2017, ADB has been actively involved in supporting grid enhancement efforts in Central West Asia through its Knowledge and Support Technical Assistance program. Established in 1997, KEGOC plays a crucial role as the system operator of Kazakhstan’s Unified Energy System (UES), contributing to the development of a sustainable electricity system and supporting the nation’s energy transition and clean energy development. The majority shareholder of KEGOC is the Sovereign Wealth Fund, Samruk-Kazyna.

ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty. Founded in 1966, ADB is owned by 68 members, including 49 from the region.