Along with the global desire for comprehensive and sustainable growth, Kazakhstan has come to such an understanding by adopting national and regulated programs to create sustainable development. Kazakhstan became the first state in Central Asia to create an organizational and legal basis for the transition to "green growth" through the adoption of a number of legislative documents. Thus, in 2013, the concept of transition to a "green economy" was created. The state has established effective relations with numerous international financial institutions and strategic partners in the development of renewable energy, clean technologies and infrastructure. Today, Development Bank of Kazakhstan JSC (DBK, the subsidiary of Baiterek Holding) is the main development institution that stimulates the attraction of foreign and domestic investments in the country's economy, and continues this initiative.
Asylkhan Aitzhanov, Advisor to the Chairman of the Management Board of DBK, took part in the annual OECD Green Action Task Force conference in Paris, the main mission of which is to contribute to the improvement of environmental policy in the transition economies of Eastern Europe, Caucasus and Central Asia by promoting the integration of environmental goals in the process of socio-economic and political reforms.
Mr. Aytzhanov, in particular, spoke about the measures taken by DBK to implement the principles of sustainable development in the Bank’s activities, presented the “green projects” funded by DBK, brought up for discussion by Green Action Task Force program members and representatives of international financial organizations about ways to improve the financing of green energy.
"The main goal is the exchange of experience and knowledge, as well as strengthening cooperation in the development of renewable energy sources. Creation of conditions, processes and infrastructure in this area.
The DBK understands the importance of the concept of the green economy for Kazakhstan, which is why this direction is a priority for the Bank", Assylkhan Aitzhanov stressed.
According to the development strategy, Kazakhstan's transition to a green economy is scheduled for 2013 - 2050. Given the geographical location and climatic conditions of the country, small hydropower plants, solar and wind energy are the most promising renewable energy sources.
To date, the government is carrying out comprehensive work to support green energy, providing various instruments of state support in the form of contracts for 15 years for the purchase of electricity at auction prices with FSC certification for all renewable energy sources, annual indexation of auction prices starting from the second year of operation, etc.
As of September 30, 2019, the Development Bank of Kazakhstan has financed 5 projects for the development of renewable energy sources (wind, solar and water). For example, the largest of them are: the construction of a 100 MW Astana EXPO-2017 wind power plant (the first complex with a capacity of 50 MW) worth USD 117 million, where USD 79 million was provided by DBK as a loan, as well as the construction of a 100 MW solar power station near the city of Kapshagay, Almaty region worth USD 68 million; the share of DBK in the project amounted to USD 28 million.
"DBK supports the state concept for the development of renewable energy. Today, the share of renewable energy projects in DBK's loan portfolio for the energy sector (in kWh) is 3%. The Bank is ready to cooperate with GREEN Action Task Force to increase financing of renewable energy projects. The main criteria by which the Bank is ready to provide financing have been created. In particular, it is compliance with investment priorities in accordance with the State Memorandum, profitability and payback of the project, compliance with environmental requirements, availability of qualified management, as well as solvency.
It is worth mentioning that the conference also discussed the creation of public funds for environmental protection, as well as international experience with existing environmental and environmental funds was studied. OECD representatives noted that the work on the development of "green" technologies implies the need to expand the stakeholder base. This work requires greater involvement of the business community, civil society organizations and academia, as well as other interested groups. Particular attention and resources should be devoted to institutional capacity-building and management improvement. Kazakhstan has a huge potential for renewable energy, which can provide sustainable economic growth and affordable electricity to the most remote regions of the country.
