China-Kazakhstan energy talks send signals! Is the energy storage market in Kazakhstan about to explode?

Created on 09.03

🔍 Hot Background: On September 1, 2025, Wang Hongzhi, Director of the National Energy Administration, met in Beijing with Yerlan Akhmetzhanov, Minister of Energy of Kazakhstan. The two sides exchanged views on deepening energy cooperation and promoting the development of renewable energy. As an important hub country of the "Belt and Road" initiative, Kazakhstan has accelerated its layout in the new energy field in recent years, and the energy storage market has great potential.

01 Policy Dividend: National Strategic Support for Energy Storage

✅ Clear goals:

The Kazakh government is determined in its energy transition and has laid out plans many years ago. In 2009, the "Law on Supporting the Use of Renewable Energy" was passed, and in 2013, development goals for the renewable energy sector were established. The "Green Economy Transition Concept" and the "Kazakhstan 2050" strategy clearly state that by 2050, the share of alternative and renewable energy generation in the country's total electricity generation should be increased to 50%. Under a series of policy initiatives, as of now, there are more than 140 renewable energy projects in operation in Kazakhstan, with a total installed capacity of about 2,300 megawatts, accounting for 3.7% of total electricity generation. In the next three years, the Kazakh government also plans to add 48 renewable energy projects with a total installed capacity of 850 megawatts. It is expected that by 2025, the share of domestic renewable energy generation in total electricity generation will increase to 6%.

With the rapid growth of installed renewable energy capacity, the intermittent and volatile nature of its power generation has become increasingly prominent. Solar energy relies on sunlight, while wind energy depends on wind strength, which creates a contradiction with stable electricity demand. Energy storage systems can store electricity during periods of surplus energy and release it during periods of energy shortage, effectively balancing power supply and demand and ensuring the stable operation of the power grid. Therefore, the vigorous development of renewable energy in Kazakhstan will inevitably give rise to a strong demand for the energy storage industry.

✅ Policy dividends:

🔘The "Green Economy Transformation Plan" clearly requires that by 2030, renewable energy projects must be equipped with energy storage systems, with an expected total demand exceeding 1.2GWh.

🔘Fiscal stimulus: Import tariffs on energy storage equipment reduced by 50% (before 2025), photovoltaic/wind power + energy storage projects enjoy a premium subsidy of $0.1/kWh (30% increase over the benchmark electricity price).

🔘Rigid demand for the power grid: The power grid in Kazakhstan is severely aging, with an average transmission loss of 12% (compared to 6% in China), urgently requiring energy storage to participate in frequency modulation and peak shaving.

02 Resource endowment: The natural partner of wind and solar resources

Kazakhstan has abundant renewable energy resources such as wind and solar energy, providing a solid material foundation for the development of the energy storage industry. The vast grasslands and desert areas have favorable conditions for the construction of large-scale wind farms and photovoltaic power stations, and there is a huge demand for energy storage generated by large-scale renewable energy power generation.

🔘Photovoltaic potential: Average annual sunshine duration of 2200-3000 hours (equivalent to Qinghai, China)

🔘Wind power potential: Wind speed along the Caspian Sea coast is 7-9m/s, with a development rate of less than 5%

🔘Pain points highlighted:

The abandonment rate of wind power in 2024 is as high as 18% (vs China 3%)

The Astana region experiences extreme cold in winter (-40℃), posing challenges for traditional batteries.

03 Project Implementation: Market Development Begins to Show Promise

On January 17, the intelligent wind turbine and smart energy storage system production base located in Zhetysu, jointly built by Envision Energy and the Kazakhstan Public Utilities Company, officially broke ground. The total investment for the project is $40 million, with a designed annual production capacity of 250 wind turbines and 100 energy storage systems, capable of supporting 2GW of wind power projects and 1GWh of energy storage projects. According to the plan, the base is scheduled to be operational in the third quarter of 2026, with 60% of its capacity serving the local renewable energy market after production begins. The implementation of this project not only injects strong momentum into the development of Kazakhstan's energy storage industry but also highlights the attractiveness of its energy storage market.

On May 24, China Energy Engineering Group signed an investment cooperation framework agreement for the Almaty Region Batoqay 1GW integrated solar and storage project with the Almaty Region of Kazakhstan. The project plans to build a 1GW photovoltaic power station and supporting energy storage systems, aiming to create an efficient, stable, and sustainable green energy supply system. The advancement of numerous energy storage-related projects marks the gradual transition of Kazakhstan's energy storage market from planning concepts to actual construction, with the initial shape of the market beginning to emerge.

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