Kazakhstan: Supporting Renewable Technology-Inclusive Heat Supply Legislation
The knowledge and support technical assistance (TA) will support the development of the renewable technology-inclusive heat supply legislation for the Republic of Kazakhstan. This TA was requested by the Ministry of Energy (MOE) of Kazakhstan and is in line with the goals of the country partnership strategy 2017 -2021.
Central and West Asia Department
Request for information
|Project Name||Supporting Renewable Technology-Inclusive Heat Supply Legislation|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy sector development and institutional reform
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The knowledge and support technical assistance (TA) will support the development of the renewable technology-inclusive heat supply legislation for the Republic of Kazakhstan. This TA was requested by the Ministry of Energy (MOE) of Kazakhstan and is in line with the goals of the country partnership strategy 2017 -2021.|
|Project Rationale and Linkage to Country/Regional Strategy||
In 2013, the Government of Kazakhstan adopted the national Concept for the Transition to a Green Economy until 2050 (Strategy 2050), outlining an ambitious plan to (i) increase the share of renewable and alternative energy in power generation (to 3% by 2020, to 30% by 2030, and to 50% by 2050); and (ii) reduce energy intensity and greenhouse gas emissions. In this respect, the energy and heat sector is the biggest challenge on the government's agenda. According to an OECD report, the energy sector generates about 80% of greenhouse gas emissions in Kazakhstan, 90% of which come from heat generation.
The heat supply sector of Kazakhstan was created in the late 1970s during the Soviet era. The heat supply network consists of 12,300 kilometers of pipes and 2,427 heat producers, of which 45% are combined heat and power (CHP) plants, 35% are large boilers, and 20% are small boilers. About 44% of the heat pipes are above-ground and have inadequate insulation. The district heating plants run mostly on coal, although some use natural gas or black oil (mazut). These outdated, poorly maintained assets cause frequent disruptions in the supply of heat to end users. Heat system loss is estimated to be about 30% (exact data is not available because of an absence of metering). Heat consumption is billed per square meter of space and does not reflect actual usage.
Government of Kazakhstan has kept heating tariffs low for social reasons yet has assumed that tariffs are sufficient to cover the costs and maintenance of the assets. In 2019, Government of Kazakhstan decreased the tariff for heating by 14% compared with 2018. As a result of low tariffs and unmeasured consumption, district heating companies cannot generate capital to upgrade their assets, thus, heat supply systems are facing technical and financial deterioration.
The institutional setup of the district heating sector is complex, involving many public and private stakeholders. Roles and responsibilities of public agencies are unclear and often overlap. Norms regulating heat supply are scattered among various legal acts, increasing ambiguity. There is neither a specific or overarching law on heat supply or district heating nor technical standards and mandatory heat planning.
In March 2019, the MOE of Kazakhstan requested ADB support in drafting a new Law on Heat Supply and the respective legislation. The new legislation is critical for creating a balanced and clear regulatory framework, setting clear targets and an overarching plans on increasing share of renewables and improving energy efficiency standards in the heat sector. The OECD suggests that improving energy efficiency standards in Kazakhstan's heating sector can reduce greenhouse gas emissions by 12.6 13.8 million tons of carbon dioxide (CO2) per year, out of 229.95 million tons of CO2 emitted annually (footnote 9). Integrating renewables into existing fossil-fuel-based heating systems will further reduce CO2 emissions by lowering consumption of fossil fuels (Japan, North America, the People's Republic of China, and Scandinavian countries have had success with this). However, according to the Climate Laws, Institutions and Measures (CLIM) Index, Kazakhstan (61st in the world) faces challenges in the formulation and implementation of relevant policies. Thus, assistance to Kazakhstan in drafting an effective policy and regulatory framework is timely and needed.
|Impact||CO2 emissions in electricity and heat production reduced by 15% by 2030 (baseline 2013) and the share of alternative energy sources increased to 30% by 2030|
|Description of Outcome||Heat Supply Law adopted by the Parliament of the Republic of Kazakhstan|
|Progress Toward Outcome|
|Description of Project Outputs||
Gap analyses of the heat supply sector conducted
Renewable technology-inclusive heat supply legislation drafted
Public Private Partnership (PPP) framework in heat supply sector developed
International practices for heat supply systems disseminated
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Gurgenidze, Nana|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines Ministry of Energy
19 Kabanbai Batry Avenue
Block A, 01000, Esil District, Astana
Kazakhstan Republic of Kazakhstan
|Concept Clearance||13 Mar 2020|
|Fact Finding||31 Mar 2020 to 31 Mar 2020|
|Approval||14 Sep 2020|
|Last Review Mission||-|
|Last PDS Update||14 Sep 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|14 Sep 2020||28 Sep 2020||28 Sep 2020||31 Aug 2022||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||1,500,000.00||50,000.00||0.00||0.00||0.00||1,550,000.00||07 Sep 2021||562,057.63|
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|Title||Document Type||Document Date|
|Supporting Renewable Technology-Inclusive Heat Supply Legislation: Technical Assistance Report||Technical Assistance Reports||Sep 2020|
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|Tender Title||Type||Status||Posting Date||Deadline|
|Technical and Legal Consultancy||Firm - Consulting||Closed||18 Feb 2020||17 Mar 2020|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Policy and Advisory||Technical Assistance 6564||28 Sep 2020||VPC GmbH(GERMANY) in association with Suntrace GmbH(GERMANY)||Kraftwerkstrasse 22 Vetschau, Brandenburg D-03226 Germany||Ministry of Energy||1498589.00|
None currently available.