The European Bank for Reconstruction and Development (EBRD) is supporting the modernization of Kazakhstan’s electricity grid through a long-term investment program for Alatau Zharyk Company (AZhC), Qazinform News Agency cites the Bank’s press service. The EBRD will provide a loan of up to KZT 102 billion (€194 million) to help AZhC upgrade its electricity distribution infrastructure.
The company supplies power to around four million people and 50,000 commercial consumers in Almaty city and Almaty region. The funding will be used to purchase automated metering and telemechanic equipment and modernize low- and medium-voltage electricity networks.
The project is part of Kazakhstan’s National Project for the Modernization of Energy and Utility Sectors. The program aims to improve electricity, heating, water supply and sewerage infrastructure across the country. The EBRD ’s support is intended to help address key bottlenecks in Kazakhstan’s energy system.
The country has more than 24 GW of installed generation capacity, while its electricity grid extends across more than 470,000 square kilometers, making it one of the largest power grids in the world. The project will also support the digitalization of AZhC through the installation of smart meters and pilot smart grid technologies.
It will help strengthen cybersecurity and improve the reliability of the electricity network. The modernization is expected to save around 22 GWh of electricity annually and reduce CO2 emissions by approximately 12,000 tons per year. It is also expected to support the growth of renewable energy in Almaty region.
The project includes the reconstruction of the Zhetygen electricity substation and an associated 110 kV transmission line to support the development of Alatau city. The EBRD has invested almost 13.6 billion US dollars in Kazakhstan through 358 projects, making the country the largest recipient of EBRD investment in Central Asia.
Earlier, it was reported the EBRD lent 25 million euros to Kazakhstan’s TBF Holding Group.