Projects and Activities

National Project "Modernization of the Energy and Utilities Sectors"

National Project: "Modernization of the Energy and Utility Sectors"

Implementation Period: 2025–2029
Total Funding Volume: 13,588 billion KZT
Slide Author: Askhat Zhapsarbay

📌 Project Goal

To ensure reliable, high-quality, and energy-efficient utility services in Kazakhstan through deep infrastructure modernization, digitalization, and the investment transformation of the sector.

🔧 Key Measures

  • Infrastructure Renovation: Reconstruction and upgrading of 86,000 km of utility networks.
  • Monopoly Modernization: Modernization of 200 Natural Monopoly Entities (NMEs).
  • Power & Heat Generation: Construction and renovation of 30 CHP (Combined Heat and Power) plants, adding 7,309 MW of new capacity.
  • Heating Networks: Replacement of 1,622 km of heating networks.
  • Wastewater Treatment: Construction of 45 new WWTPs (Wastewater Treatment Plants).
  • Digitalization: Implementation of digital solutions including Smart Grid, Smart Water, and Smart Metering.

💰 Financing Breakdown

  • State Budget: 1,480 billion KZT
  • Private Investments: 13,588 billion KZT
  • Other Sources: International financial institutions, interest rate subsidies

✅ Expected Outcomes

  • Reduction of utility infrastructure wear and tear down to 40%.
  • Growth of investments in the housing and public utilities sector.
  • Improved quality and accessibility of public utility services.
  • Enhancement of the overall environmental situation.
  • Automation and increased transparency in tariff regulation.
  • Boosted energy efficiency and digital transformation across the sector.

⚠️ Key Challenges

  • Timeline Feasibility: Balancing realistic deadlines against a high level of existing infrastructure wear and tear.
  • Tariff Risks: Potential rise in utility tariffs associated with attracting private investment.
  • Financial Control: The need for transparent oversight and monitoring of funds.
  • Digital Readiness: Ensuring digital infrastructure is prepared for large-scale integration.

🔎 Proposed Solutions

  • Oversight: Establishment of an independent supervisory body.
  • Transparency: Implementation of a transparent expenditure monitoring system.
  • Agility: Flexibility in project deadlines and implementation phases.
  • Consumer Protection: Social guarantees to shield consumers from sharp tariff increases.
Made on
Tilda