ADB partners with KEGOC to upgrade Kazakhstan’s power grid and enable large-scale renewable energy distribution

The Asian Development Bank (ADB) and the Kazakhstan Electricity Grid Operating Company (KEGOC) have signed a financing agreement worth 58.2 billion tenge (about $123 million) to expand the high-voltage transmission network in the southern region of Kazakhstan. The expansion will allow for the integration of large-scale renewable energy generation into the grid, strengthen and stabilize electricity transmission in the south of the country, and improve Kazakhstan’s energy security.

The funding will support the construction of 500 kilovolt (kV) overhead transmission lines and the reconstruction and renovation of the Shu, Jambyl and Shymkent 500 kV substations. These upgrades are expected to increase transmission capacity by 75% and improve power supply stability by eliminating overloading and reducing transmission losses.

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“ADB’s partnership with KEGOC will help Kazakhstan achieve its net-zero emissions goals by achieving its energy transition and renewables expansion objectives. This project will upgrade the grid, prepare it for large-scale renewables, reduce power transmission losses, and eliminate economically damaging outages,” said Suzanne Gaboury, ADB’s Managing Director of Private Sector Operations.

“ADB will assist KEGOC in adopting inclusive gender norms in the workplace, support women pursuing careers in the energy sector, and provide capacity building and technical advice on integrating renewable energy into the grid.”

The funding will support the construction of 500 kilovolt (kV) overhead transmission lines and the reconstruction and renovation of the Shu, Jambyl and Shymkent 500 kV substations.

Since 2017, ADB has played a critical role in supporting network improvement efforts in West Central Asia through its Knowledge and Support Technical Assistance program.

Established in 1997, KEGOC is the operator of Kazakhstan’s UES system. It contributes to the development of the future energy system and market in the context of the energy transition, meeting the growing needs of the economy, and to the development of a sustainable electricity system through infrastructure planning and the development of clean energy. The majority shareholder of KEGOC is the sovereign wealth fund Samruk-Kazyna.

The ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.