BAKU, Azerbaijan, August 3. Kazakhstan's energy
sector is entering a period of major transformation. In recent
years, the country has faced growing electricity consumption,
increasing pressure on the power system, and the need to modernize
part of its aging infrastructure. Under these conditions, the
development of new generation capacity and the modernization of
existing facilities have become among the key priorities of the
country's energy policy.
According to Kazakhstan's Ministry of Energy, electricity
production in January-June 2026 amounted to 63.4 billion kWh, up
1.9% compared with the same period last year.
One of the factors increasing pressure on the power system is
the expansion of industrial activity. According to Kazakhstan's
Bureau of National Statistics, the country's industrial production
index stood at 103.5% in January-June 2026. Growth was recorded in
the manufacturing industry, which increased by 9.8%, in the sector
covering electricity, gas, steam, hot water supply and air
conditioning, which grew by 10.5%, as well as in water supply,
wastewater management, waste collection, treatment and disposal,
which increased by 9.8%.
Rising electricity demand is becoming one of the key challenges
for Kazakhstan amid expanding industrial production, the
development of new technologies and increasing pressure on existing
infrastructure. At the same time, construction of energy facilities
requires significant time, making long-term generation planning an
important factor for economic stability.
Digital projects could become another factor contributing to
future electricity demand growth. In the long term, the development
of artificial intelligence, data centers, and other digital
infrastructure may create additional demand for reliable power
supplies. In particular, the "Data Center Valley" project in
Ekibastuz envisages the creation of a technological cluster with
infrastructure for data processing and artificial intelligence
solutions. According to announced plans, its capacity may reach up
to 1 GW.
Against this backdrop, the Government of Kazakhstan has set a
goal of fully covering domestic electricity demand and achieving a
power capacity surplus from 2027. The implementation of this task
is also linked to the need to modernize energy infrastructure: the
average depreciation level of equipment at the country's energy
facilities is estimated at around 56%.
The main tool for expanding Kazakhstan's energy capabilities
will be the introduction of new generation capacity. According to
the country's power sector development plans through 2035,
Kazakhstan intends to add more than 26 GW of new generation
capacity, of which 13.3 GW is expected to be commissioned by
2029.
At the same time, traditional energy sources will continue to
play a significant role in the country's energy mix. Coal-fired
generation accounts for around 62% of electricity production. At
the same time, the sector is undergoing modernization: within the
framework of the national project for coal energy development, 19
projects with a total capacity of 7.8 GW are being implemented.
These projects include the modernization of existing facilities and
the introduction of modern technologies aimed at improving
efficiency and reducing environmental impact.
One of the areas of diversification of the energy system is the
development of hydropower. As part of implementing the Head of
State's instructions on diversifying the electricity sector, the
Government of Kazakhstan approved the Hydropower Development Plan
of the Republic of Kazakhstan until 2035.
The document provides for a comprehensive approach to developing
the country's hydropower potential. When preparing new projects,
factors such as water resources availability, power system needs,
technical capabilities, environmental restrictions, and investment
conditions will be taken into account.
The plan includes 30 measures across six areas, including
assessment of water balance and the energy potential of rivers,
creation of a unified database of prospective projects, preparation
of land plots, formation of a portfolio of hydropower plants and
pumped-storage hydropower projects, as well as development of human
resources and scientific and technical capabilities.
By 2030, Kazakhstan plans to introduce at least 500 MW of new
hydropower capacity, including pumped-storage hydropower projects.
Such facilities will help increase the flexibility of the power
system and improve load regulation during peak consumption
periods.
At the same time, the renewable energy sector continues to
expand. The share of renewables in the overall generation structure
is around 7%, while in the first half of 2026, electricity
production at renewable energy facilities increased by more than
21% and amounted to 5.1 billion kWh.
The creation of additional generation capacity could become one
of the factors supporting Kazakhstan's further industrial and
technological development. Reliable power supply is important for
expanding manufacturing, developing deep processing of raw
materials, digital infrastructure, data centers, and other
energy-intensive sectors.
Thus, Kazakhstan's key task is no longer limited to meeting
current electricity demand, but also involves creating an energy
base for the next stage of industrial and technological
development.
The formation of a balanced energy system, where coal, gas,
hydropower and renewable energy sources complement each other, will
help improve energy security, reduce the risks of capacity
shortages and create conditions for further economic growth.
