Kazakhstan to build thermal power plants alone as Russia pulls out

Russia has officially abandoned plans to construct three thermal power plants (TPPs) in Kazakhstan, Deputy Prime Minister Roman Sklyar confirmed during a press briefing, according to local media outlet Orda.kz.

The project was initially to be carried out by Russian energy firm Inter RAO, which had intended to access concessional financing within Kazakhstan, Caliber.Az reports.

However, the company failed to secure the required export credit, prompting Kazakhstan to proceed independently.

"Inter RAO was supposed to receive export financing. Unfortunately, they were unable to do so, so we decided to move forward on our own," Sklyar said. "Construction of the TPP in Kokshetau has already entered an active phase, with Samruk-Energo acting as the developer. The same approach will be taken for the plants in Semey and Ust-Kamenogorsk."

He added that if Russia proposes financing in the future, Samruk-Energo could still consider Russian firms as partners.

"There are no obstacles. The aim is for these power plants to offer competitive tariffs within the capacity market without exceeding existing price limits," Sklyar explained.

While the final cost was not disclosed, Sklyar estimated expenses at between $2 million and $2.5 million per gigawatt of capacity.

Plans for the joint project were first announced in November 2023 by Kazakhstan’s then Deputy Prime Minister Serik Zhumangarin at the 19th Russia-Kazakhstan Forum on Cross-Border Cooperation.

By Aghakazim Guliyev