SFCMarketsandFinance｜YerjiangAdilet:

南方财经全媒体记者 施诗 哈萨克斯坦阿斯塔纳报道

“The Kapchagay photovoltaic power station is the largest solar power station in the region and was jointly constructed with Chinese investors”, “We also have two large wind power stationsdeveloped in collaboration with Chinese investors”... In the interviewwith SFC, the main specialist of Energy Department of Almaty Province, Yerjiang Adilet, listed the renewable energy projects that China has participated in Almaty over the years.

Green has becomea backgroundcolorfor China and Central Asia to jointly build the Belt and RoadInitiative. Under the Belt and Road Initiative, the cooperation between Chinese enterprises and Kazakhstan in the fields of photovoltaic, wind power, hydropower and other renewable energy has been deepened, bringing positive changes to the electricity consumption of local residents.

Taking the Kapchagayphotovoltaic power station as an example, Adilet pointed out that it can guarantee the electricity supply of localresidents and alleviate the energy shortage situation, makingpositiveimpact both from the ecological impact and from the effect of alleviating power shortages.

Looking to the future, Adilet indicatedthat there are still some unimplemented planswhich arebeing currently actively negotiatedwith Chinese investors.If all goes well, by 2030, Almaty#39;s total power generation mightbe able to achieve complete self-sufficiency.

ChinaandKazakhstan are negotiating new cooperation plans

SFC Markets and Finance:Could you briefly introduce the overall situation of the electricity industry in Almaty Province?

Yerzhan Adilet: In Almaty Province, there are mainly three types of electricity generation methods, including two large hydroelectric power stations and Almaty-3 steam power stations. The primary source of electricity generation is through renewable energy. The total installed capacity of these two large hydroelectric power stations is 364 MW, but the actual usable power is only half of that.

SFC Markets and Finance:What is the distribution of various energy sources in Almaty Province?What is the proportion of green energy?

Yerzhan Adilet:In Almaty Province, the electricity demand is approximately 600 MW, and currently, renewable energy accounts for 16% of that. However, we have 21 renewable energy power stations with a total designed capacity of 322 MW. This includes 6 hydroelectric power stations,9 wind power stations, and 6 solar power stations. In general, our electricity demand is about 600 MW, with 310 MW being self-produced, and the rest is purchased from other regions.

SFC Markets and Finance: How to promotetheutilizationof green energy?

Yerzhan Adilet:Our country strongly supports the development of renewable energy and has organized multiple auctions to promote renewable energy generation projects. Comprehensive support is provided, including support from top government officials for renewable energy project construction, and a greater shift towards renewable energy. In accordance with the Paris Agreementand other related regulations,by 2050, we must achieve a 90% transition to renewable energy and reach carbon neutrality.

SFC Markets and Finance: How many China-Kazakh joint ventures are currently in operation in Almaty Province?

Yerzhan Adilet:We have partnered with Universal Energy and implemented two projects in Almaty Province, which are two solar power stations. The region of Almaty Province is highly attractive for renewable energy,and is a compelling investment destination. Many countries want to invest in renewable energy, including our neighbor China.We also have two large wind power stationsdeveloped in collaboration with Chinese investors. These wind power stations have capacities of 60 MW and 50 MW, while the solar power stations generate 100 MW and 50 MW respectively. The Kapchagay photovoltaic power station is the largest solar power station in the region and was jointly constructed with Chinese investors.

SFC Markets and Finance: What are the future cooperation plans between Kazakhstan and China in terms of green energy?

Yerzhan Adilet:We have one more project that is currently in theplanning phase and has not yet been implemented. Currently, we are actively engaged in negotiations with Chinese investors. According to the President#39;s cooperation plans,two wind power stations and one hydroelectric power station are being considered. We are now placing greater emphasis on the development of renewable energy. The total installed capacity of these three renewable energy projects is 420 MW, and if implemented, they will be delivered to Chinese investors.

Provide policy support for foreign investment

SFC Markets and Finance: What role does the Kapchagay photovoltaic power stationplay in Almaty Province?What are its impacts on green emissions reduction?

Yerzhan Adilet:As I mentioned earlier, the Kapchagay 100MW Photovoltaic Power Station is the largest solar power station in the region, and itplays a positive role. It helps secure the electricity supply for residents, allowing us to alleviate the current energy shortage situation and reduce ourenergy purchases from other regions. According to the governor#39;s instructions, by 2030, we hope to transition to using exclusively the electricity generated within our province. We have no objections to the Kapchagay Photovoltaic Power Station. From my perspective, since 2018, this power station has been operating according to its declared capacity without any complaints. Therefore, its impact on the environment is positive, and it has a positive effect on alleviating electricity shortages.

SFC Markets and Finance: What policies has the provincial government enacted to encourage Chinese companies to invest in Almaty Province?

Yerzhan Adilet: We have many investment advantages. In other words, we can allocate land for the construction of renewable energy projectsor provide them with land for free or through leasing. Our primary task is to provide high-quality electricity supply to the people. That#39;s why we engage in negotiations, make concessions in some areas, and provide support at the national level for power purchases. Once the auctions are conducted, the electricity generated from renewable sources must be transmitted to the grid. This is mandatory. In other words, over time, even if any issues arise,refusing grid integration is not an option. In other words, the electricity generated from renewable sources must be integrated into the grid by the power transmission companies.

SFC Markets and Finance: Does the provincial government has any other cooperation plans with Chinese companies?

Yerzhan Adilet:Currently, ministerial-level leaders and our provincial leadership are engaged in extensive negotiations. We have what#39;s called the “Khirev Corridor”, where there is significant wind power potential. As I mentioned earlier, we have jointly constructed a 60-MW wind power station with Chinese investors. There are plans to expand these stations. Possibly an 810-MW wind power station will be constructed.For this purpose, semi-state-owned enterprises like Samruk Energy and Samruk Fund, representatives from the Ministry of Energy, and representatives from Almaty Province are in negotiations to jointly realize this project. Additionally, I mentioned earlier there#39;s a hydroelectric station and two wind power station projects in the Kegen region. Following the instructions of the head of state,renewable energy has been prioritized in energy development. It can be said that we have investors coming here every month, showing keen interest in constructing new renewable energy projects. The governor personally receives them, listens to their opinions, and provides suggestions or conclusions.Regarding the construction, as far as I know,there are currently four major projects.