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.
Project Details
-
Project Officer
Gurgenidze, Nana
Sectors Group
Request for information -
Country/Economy
Kazakhstan -
Sector
- Energy
Project Name | Supporting Renewable Technology-Inclusive Heat Supply Legislation | ||||||||||
Project Number | 53341-001 | ||||||||||
Country / Economy | Kazakhstan |
||||||||||
Project Status | Closed | ||||||||||
Project Type / Modality of Assistance | Technical Assistance |
||||||||||
Source of Funding / Amount |
|
||||||||||
Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
||||||||||
Sector / Subsector | Energy / Energy sector development and institutional reform |
||||||||||
Gender | 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 12.613.8 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 |
Project Outcome | |
---|---|
Description of Outcome | Heat Supply Law adopted by the Parliament of the Republic of Kazakhstan |
Progress Toward Outcome | |
Implementation Progress | |
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) | |
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 | Sectors Group |
Responsible ADB Division | Energy Sector Office (SG-ENE) |
Executing Agencies |
Ministry of Energy |
Timetable | |
---|---|
Concept Clearance | 13 Mar 2020 |
Fact Finding | 31 Mar 2020 to 31 Mar 2020 |
MRM | - |
Approval | 14 Sep 2020 |
Last Review Mission | - |
Last PDS Update | 14 Sep 2020 |
TA 6564-KAZ
Milestones | |||||
---|---|---|---|---|---|
Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
14 Sep 2020 | 28 Sep 2020 | 28 Sep 2020 | 31 Aug 2022 | 30 Jun 2023 | 27 Sep 2023 |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
---|---|---|---|---|---|---|---|---|
ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
300,000.00 | 1,500,000.00 | 50,000.00 | 0.00 | 0.00 | 0.00 | 1,850,000.00 | 06 Oct 2023 | 1,670,312.63 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Title | Document Type | Document Date |
---|---|---|
Supporting Renewable Technology-Inclusive Heat Supply Legislation: Technical Assistance Report | Technical Assistance Reports | Sep 2020 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
---|---|---|---|---|
Technical and Legal Consultancy | Firm - Consulting | Closed |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | 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 | 1,498,589.00 | — |
Procurement Plan
None currently available.