Asian Development Bank to invest over $120 mln in Kazakhstan power grid expansion

ASTANA. July 22 (Interfax) - The Asian Development Bank (ADB) and the Kazakhstan Electricity Grid Operating Company (KEGOC) have signed a financing deal worth 58.2 billion tenge or around $122 million to expand the high-voltage transmission network in the southern region of Kazakhstan, ADB said in a press release.

"This expansion will allow the integration of large-scale renewable power generation into the grid, reinforce and stabilize power transmission in the country's south, and improve Kazakhstan's energy security," the press release says.

The financing will support the construction of 500 kilovolt overhead transmission lines and the reconstruction and renovation of the Shu, Jambyl and Shymkent 500 kV substations.

"ADB's partnership with KEGOC will assist Kazakhstan in achieving its net-zero emissions goals by reaching its energy transition and renewable energy expansion targets. This project will enhance the grid, prepare it for utility-scale renewable energy, reduce power transmission losses, and eliminate economically harmful outages," ADB Director General for Private Sector Operations Suzanne Gaboury is quoted as saying.

KEGOC is the operator of the national power grid of Kazakhstan. As of January 1, 2024 the major stakeholder of KEGOC was Sovereign Wealth Fund Samruk-Kazyna JSC with an 85% holding; Kazakhstan's Unified Accumulative Pension Fund (UAPF) owns a 6.87% stake in KEGOC.