Kazakhstan : Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan

Sovereign Project | 56314-001

In general, ADB's ETM is seeking to set up a commercial funding vehicle for supporting the accelerated retirement of coal plants while also supporting the simultaneous scale up of renewable energy. The TA will conduct a pre-feasibility study (Pre-FS) aiming to identify opportunities and possible transition mechanisms in Kazakhstan to accelerate the retirement of coal-fired power plants (CFPPs) and combined heat-power plants (CHPPs) and replace them with cleaner energy sources.

The ETM Pre-FS will:

(i) assess Kazakhstan's policy and regulatory environment under which CFPPs and CHPPs are operating in order to understand the feasibility of acquiring, retiring, and replacing CFPPs and CHPPs suitable for GOK's consideration under one of the potential ETM modalities;

Project Details

  • Project Officer
    Zharkinbayev, Serik Sabitovich
    Sectors Group
    Request for information
  • Country/Economy
    Kazakhstan
  • Sector
    • Energy
Project Name Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan
Project Number 56314-001
Country / Economy Kazakhstan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10085-KAZ: Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan
Technical Assistance Special Fund US$ 225,000.00
Operational Priorities OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender No gender elements
Description

In general, ADB's ETM is seeking to set up a commercial funding vehicle for supporting the accelerated retirement of coal plants while also supporting the simultaneous scale up of renewable energy. The TA will conduct a pre-feasibility study (Pre-FS) aiming to identify opportunities and possible transition mechanisms in Kazakhstan to accelerate the retirement of coal-fired power plants (CFPPs) and combined heat-power plants (CHPPs) and replace them with cleaner energy sources.

The ETM Pre-FS will:

(i) assess Kazakhstan's policy and regulatory environment under which CFPPs and CHPPs are operating in order to understand the feasibility of acquiring, retiring, and replacing CFPPs and CHPPs suitable for GOK's consideration under one of the potential ETM modalities;

(ii) develop of a multi-criteria analysis (MCA) framework that will be used to carry out a high-level screening of Kazakhstan's entire fleet of CFPPs and CHPPs based on financial, contractual, institutional, regulatory, geographical location and market-related aspects for the purpose of identifying and ranking them from high-prospect to low-prospect assets in terms of their potential for accelerated retirement under a suitable ETM modality;

(iii) provide a detailed financial analysis of the top-five (5) representative CFPPs and CHPPs;

(iv) define the terms of reference (TORs) for a full feasibility study with a larger scope and timeframe, which would later design the structure of a pilot ETM aiming to replace coal and/or other high-carbon power generation with cleaner technologies;

(v) define a potential ETM opportunities to accelerate the transition from coal-fired and other high-carbon power generation to clean power generation in Kazakhstan;

(vi) conduct an analysis on the suitable ETM models within the prevailing legal and regulatory framework of Kazakhstan's energy sector.

Project Rationale and Linkage to Country/Regional Strategy

The ETM can support the country's goals to: (i) significantly decrease greenhouse gas (GHG) emissions from CFPPs, (ii) achieve its nationally determined contributions under the 2015 Paris Agreement, (iii) develop a just transition component to ensure a fair transition to a low-carbon society, and (iv) increase the country's share in renewable energy sources (RES) for heat and power production.

Impact

Encourage developing member countries to shift to a low greenhouse gas emission development path in line with their nationally determined contributions under the Paris Agreement

Project Outcome
Description of Outcome

Pre-feasibility Report of a ETM mechanism in Kazakhstan completed

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. A coal power plants are identified for retirement

2. Scope of full feasibility study for a pilot ETM defined

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 In line with ADB commitment to the transparency of the process and ensure meaningful engagement in future a stakeholder mapping and stakeholder consultation framework will be developed under the pre-FS. It will be essential to gain approval and buy-in from Government ministries and other key stakeholders in the energy system. It is also important for independent organizations and CSOs to be consulted and informed to promote their involvement. The draft outputs will be shared with the concerned CSOs/NGOs for review and feedback.
Business Opportunities
Consulting Services The consultants' works include (i) technical review and policy and regulatory assessments; (ii) financial analysis of costs and subsidies of selected CFPPS and/or HCPPs; (iii) capacity building workshop on international practices for accelerated retirement of CFPP and HCPP fleets for the government agencies and academic institutions and (iv) designing of full feasibility study for a pilot ETM. These tasks will be performed by separate individual consultants.
Responsible ADB Officer Zharkinbayev, Serik Sabitovich
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Asian Development Bank
Timetable
Concept Clearance -
Fact Finding 12 Oct 2022 to 12 Oct 2022
MRM -
Approval 28 Dec 2022
Last Review Mission -
Last PDS Update 27 Mar 2023

TA 10085-KAZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Dec 2022 - 28 Dec 2022 31 Dec 2023 30 May 2024 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 0.00 0.00 0.00 0.00 225,000.00 27 Nov 2023 145,637.39

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Tenders

Tender Title Type Status Posting Date Deadline
Senior Expert on Energy Policy and Markets (Team Leader) _Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan Individual - Consulting Closed
National Consultant_Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan Individual - Consulting Closed
Senior Financial Specialist_Opportunities to Accelerate Coal to Clean Power Transition in Kazakhstan Individual - Consulting Closed

Contracts Awarded

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Procurement Plan

None currently available.