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A meeting of representatives of Asia Development Bank (ADB), KAZENERGY and the Institute of Economic Research was held at the site of KOREM JSC.
In Kazakhstan, 68% of electricity production comes from coal, which is one of the most carbon-intensive types of fossil fuels and is considered a key cause of air pollution.
A meeting of representatives of Asia Development Bank (ADB), KAZENERGY and the Institute of Economic Research was held at the site of KOREM JSC.
The main purpose of the meeting is to discuss in the format of an open dialogue the introduction of an Energy Transition Mechanism (ETM) in Kazakhstan.
ADB is studying the Energy Transition Mechanism (ETM), originally proposed under the auspices of the World Economic Forum in 2018 and representing a reproducible market model that will help accelerate the transition from coal to clean energy.
The goal of the ETM is the gradual and purposeful introduction of coal-fired capacities from the general structure of energy and heat generation with the replacement of renewable energy sources over the next twenty years. Representatives of the ADB also spoke about the sources of financing of the ETM, which includes:
- Carbon Emission Reduction Fund (CERF) – the assets of the plant, being owned by the fund, will continue to operate for an agreed period, which is less than the current expected service life, but long enough to return money to investors;
- The Clean Energy Development Fund (CEDF) provides financing to the energy sector, provides the necessary technological assistance to accelerate the introduction of renewable energy.
As the CEDF increases the capacity and storage of renewable energy, the CERF will decommission obsolete assets, which will accelerate the country's transition to a low-carbon economy.
KOREM emphasizes a great opportunity in the development and implementation of the project proposed by ADB, given the beginning of a lot of work on the audit of energy enterprises in Kazakhstan. To assess the transition from coal to clean energy and the abandonment of coal-fired energy assets, it is paramount and important to conduct a feasibility study of the ETM, taking into account the conditions and characteristics of Kazakhstan.
