Kazakhstan Rejects Russian Companies in Power Plant Construction

Kazakhstan has officially rejected cooperation with Russian companies in the construction of new thermal power plants (TPPs) in the cities of Kokshetau, Semey, and Ust-Kamenogorsk. This significant decision was reported by The Moscow Times, which highlighted Kazakhstan's intention to execute these projects independently while also engaging foreign partners.

Specifically, the TPP in Kokshetau will be constructed without the involvement of Russian companies, while the two other TPPs in Semey and Ust-Kamenogorsk will be realized by a Kazakhstan-Singapore consortium that includes the company Samruk-Energo. The launch of the TPP in Kokshetau is scheduled for the first quarter of 2029, with the project estimated to cost approximately 300 billion tenge, equivalent to about 645 million US dollars.

In contrast, the TPPs in Semey and Ust-Kamenogorsk will be more expensive, costing around 400 billion tenge, or 860 million US dollars. The commissioning of both stations is planned for the end of 2029. Kazakhstan's Vice Minister of Energy, Sungat Yesimkhanov, noted that all new TPPs will be equipped with modern Chinese technologies that meet environmental requirements.

A crucial aspect of the new projects will be the use of 'clean coal' technology and elements of artificial intelligence, which will enhance efficiency and reduce the negative impact on the environment. Initially, Kazakhstan considered the possibility of constructing these TPPs in collaboration with Russia; however, due to a lack of information regarding preferential financing from the Russian side, the country decided to implement the projects independently.

According to the agreement, Russian banks were supposed to provide funding for the project through 15-year loans. However, as reported, difficulties arose concerning the financing of the project and subsidizing the interest rate for purchasing the necessary equipment. These issues were the primary reasons for the rejection of collaboration with Russian companies.

It is worth recalling that the agreement to construct TPPs on the territory of Kazakhstan was established in November 2023 during Russian President Vladimir Putin's visit to the country. Initially, the total cost of building the facilities was estimated at 2.7 billion dollars, with the Russian holding Inter RAO set to act as the general contractor.

Additionally, Kazakhstan has revised the construction scheme for the third power unit at the Ekibastuz GRES-2, opting out of Russian turbines and generators. The new equipment supplier will be the Chinese company Harbin Electric International, indicating a growing collaboration between Kazakhstan and China in the energy sector.

These changes in Kazakhstan's energy policy reflect the country's desire for independence in critical infrastructure projects and a reduction in reliance on Russian companies, which could have far-reaching implications for regional economic and energy security.