ASTANA, KAZAKHSTAN (19 July 2024) — The Asian Development Bank (ADB) and the Kazakhstan Electricity Grid Operating Company (KEGOC) have signed a financing deal worth 58.2 billion tenge (around $123 million) to expand the high-voltage transmission network in the southern region of Kazakhstan. This expansion will allow the integration of large-scale renewable power generation into the grid, reinforce and stabilize power transmission in the country’s south, and improve Kazakhstan’s energy security.

The financing will support the construction of 500 kilovolts (kV) overhead transmission lines and the reconstruction and renovation of the Shu, Jambyl, and Shymkent 500 kV substations. These enhancements are expected to increase transmission capacity by 75%, and improve the stability of energy supplies by eliminating overloading and reducing transmission losses.

“ADB’s partnership with KEGOC will assist Kazakhstan in achieving its net-zero emissions goals by reaching its energy transition and renewable energy expansion targets. This project will enhance the grid, prepare it for utility-scale renewable energy, reduce power transmission losses, and eliminate economically harmful outages,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “ADB will help KEGOC adopt gender-inclusive workplace standards, support women pursuing careers in the energy sector, and provide capacity building and technical advice on renewable energy grid integration.”

Since 2017, ADB has been instrumental in supporting grid enhancement efforts in Central West Asia through its Knowledge and Support Technical Assistance program.

Established in 1997, KEGOC is the system operator of Kazakhstan’s UES. 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 the development of a sustainable electricity system through infrastructure planning and clean energy development. The majority shareholder of KEGOC is Sovereign Wealth Fund, Samruk-Kazyna.

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