Kazakhstan has approved a major renewable energy agreement with the United Arab Emirates (UAE) to build a 1GW wind power plant.
The project includes a 300MW energy storage system and will be located in the Zhambyl region.
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Kazakhstan Today reported that the lower house of the country’s parliament, the Mazhilis, ratified the deal on 30 April.
Kazakh Energy Minister Erlan Akkenzhenov described the deal as a milestone in renewable energy cooperation. He said it would raise Kazakhstan’s renewable share by an additional 3%.
The agreement was initially signed on 2 December 2023 in Dubai with UAE-based energy company Masdar.
Akkenzhenov was quoted by the publication as saying: “The purpose of the agreement is to build a 1GW wind power plant and a 300MW energy storage system in the Zhambyl region together with Masdar.”
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By GlobalDataTwo 500MW wind farms will be built under the agreement. Combined, they are expected to generate 3.4 billion kilowatt-hours of electricity a year.
This output could reduce carbon dioxide emissions by nearly two million tonnes a year.
The project includes Kazakhstan’s first large-scale energy storage system. Akkenzhenov stated this would help stabilise the national electricity grid.
He also noted the opportunity for local professionals to gain technical experience.
The development is expected to bring $1.4bn in foreign direct investment (FDI) and will create around 1,000 construction jobs and up to 100 permanent roles.
A total of 425km of new transmission lines will be constructed. These will improve energy connectivity between the country’s north and south.
Authorities see this as a step toward enhanced national energy security. Local content will be prioritised in materials and services used for the project.
This approach aims to support domestic businesses and industry development. It is intended to maximise the economic benefit of the investment.
Despite its large oil reserves, Kazakhstan has significant wind energy potential.
Over half its land area has wind speeds suitable for electricity generation.
UN estimates put the potential at 1.8 trillion kilowatt-hours a year.
Kazakhstan also receives high levels of solar radiation annually. This translates to an annual solar capacity between 1,300kW to 1,800kW per square metre.
