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Kazakhstan: Supporting Renewable Technology-Inclusive Heat Supply Legislation

Sovereign (Public) Project | 53341-001 Status: Proposed

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 Details

Project Officer
Gurgenidze, Nana Central and West Asia Department Request for information
Country
  • Kazakhstan
Sector
  • Energy
 
Project Name Supporting Renewable Technology-Inclusive Heat Supply Legislation
Project Number 53341-001
Country Kazakhstan
Project Status Proposed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA: Supporting Energy Efficient and Clean Technology Inclusive Heat Supply Sector Development in Kazakhstan
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.00 million
TA: Supporting Renewable Technology-Inclusive Heat Supply Legislation
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
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

The Government of Kazakhstan has adopted the national Concept for the Transition to a Green Economy until 2050 (Strategy 2050), outlining the ambitious plan (i) to increase the share of renewable and alternative energy in power generation (3% by 2020, 30% by 2030, and 50% by 2050) and (ii) to reduce the energy intensity and GHG emissions (25% in 2020, 30% in 2030, and 50% by 2050, against the levels of 2010). In this respect, the energy and heat sector is the biggest challenge on the government's agenda. According to an OECD report, energy sector generates about 80% of total GHG emissions, 90% of which comes from heat generation.

The heat supply sector of Kazakhstan was created in the late 1970s during the Soviet Union era. The heat supply network consists of 12,300 kilometers of pipes and 2,427 heat producers, among which 45% is combined heat and power (CHP) plants, 35% large boilers, and 20% small boilers. Approximately 44% of the heat pipes are placed over the ground and have inadequate insulation. The district heating plants run mostly on coal, while some use natural gas or black oil (mazut). The outdated and poorly maintained assets cause disruptions in supply to end users. The heat system loss is considered to be 30% (exact data is not available due to the absence of metering). Heat consumption is billed per square meter of the space and does not reflect the actual usage.

The tariffs for the different heat supply services have been kept low for social reasons, yet assumed to be sufficient to cover the costs and maintenance of the assets. In 2019, the tariff for heating was decreased by 14% compared to 2018. As a result of low tariffs and unmeasured consumption, district heating companies cannot generate capital to upgrade their assets, thus the heat supply systems are facing technical and financial deterioration issues.

The institutional setup of the district heating sector is complex, involving many different stakeholders from the public and private sectors. The roles and responsibilities of public agencies in the sector are unclear and often overlapping. Norms regulating the sector are scattered in various legal acts, increasing ambiguity of the sector setup. There is no specific or overarching law on heat supply or district heating.

In March 2019, the Ministry of Energy (MOE) of Kazakhstan requested ADB for support with developing the Heat Supply Law and the respective legislation. The new legislation is critical for creating a balanced and clear regulatory framework, setting clear targets and an overarching plan on increasing renewable share, and improving energy efficiency standards in the heat sector.

Impact CO2 emissions in electricity and heat production reduced by 15% for 2030 (baseline 2013) and the share of alternative energy sources increased up to 30% by 2030
Outcome Heat Supply Law adopted by the Parliament of the Republic of Kazakhstan
Outputs

Gap analyses of heat supply sector conducted

Renewable technology-inclusive heat supply legislation drafted

International practice for heat supply systems disseminated

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
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
Executing Agencies
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
*
Timetable
Concept Clearance 13 Mar 2020
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 30 Mar 2020

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Tenders

Tender Title Type Status Posting Date Deadline
Technical and Legal Consultancy Firm - Consulting Closed 18 Feb 2020 17 Mar 2020

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

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