Kazakhstan is determined to build nuclear power plant despite sanctions risks
Sanction clauses will be included in contracts for the construction of Kazakhstan’s first nuclear power plant (NPP) with a capacity of 2.4 gigawatts (GW), according to the Ministry of Energy’s response to an inquiry from Kursiv.media.
«As part of ongoing negotiations with companies bidding to construct the NPP in Kazakhstan, issues related to sanctions are being carefully analyzed and addressed. This is necessary to minimize potential risks that could impact the fulfillment of obligations related to the construction and financing of the project. Provisions and measures for managing such risks will be incorporated into the relevant contracts,» the ministry stated.
The agency also noted that these sanction-related measures are designed to safeguard Kazakhstan’s interests and ensure the project’s timely and high-quality implementation.
In early January, the U.S. imposed sanctions on Russian companies and officials in the energy sector. The sanctions targeted several key figures at Rosatom, Russia’s state-owned nuclear corporation. Those sanctioned include CEO Alexey Likhachev; his first deputies, Kirill Komarov and Alexander Lokshin; as well as other senior officials, such as Andrei Nikipelov, Ilya Rebrov, Nikolay Spasskiy, Sergei Novikov, Konstantin Denisov, Oleg Kryukov, Yuri Yakovlev, Sergei Obozov, Yurii Olenin, Andrei Petrov and Vyacheslav Ruksha, head of the Northern Sea Route Directorate, a Rosatom division.
Rosatom described the sanctions against its top management as unfounded and illegal.
«Rosatom, a global leader in nuclear energy technology exports, views these sanctions as an example of unfair competition from unfriendly states,» the company said.
Additionally, the company’s press office assured that Rosatom remains committed to fully honoring its obligations to its partners. Rosatom CEO Likhachev also stated that the U.S. sanctions would not impact its cooperation in the peaceful nuclear energy sector.
Rosatom is regarded as one of the leading contenders to win the bid for constructing Kazakhstan’s first NPP. Initially, the Ministry of Energy estimated the cost of building the 2.4 GW plant, consisting of two 1.2 GW units, at $10 billion, a figure consistent with the cost of similar NPPs built by Rosatom. However, Kazakhstan later adjusted the estimated cost to $11 billion, then $12 billion and eventually $15 billion. Roman Sklyar, first deputy prime minister, acknowledged that the project’s cost could increase by up to 150% compared to the original budget.
For comparison, Rosatom is building the Akkuyu NPP in Turkey using a build-operate-transfer (BOT) model. The facility features four VVER-1200 units with a combined capacity of 4,800 megawatts (MW). In September 2023, Likhachev estimated the cost of the Akkuyu project at $23 to $24 billion, later revising the figure to $24 to $25 billion. Under the agreement, Turkey committed to purchasing 70% of the electricity from the first two units and 30% from the remaining two units at a fixed rate of 12.35 cents per kilowatt-hour (kWh). While Turkey guarantees the purchase of a portion of the electricity at pre-agreed rates, Rosatom is responsible for independently financing and constructing the plant.
Notably, during his first press conference in July 2023, Nurlan Zhakupov, chairman of Samruk-Kazyna, identified Rosatom as a contender for Kazakhstan’s NPP project. He also acknowledged several challenges associated with the initiative.
The Ministry of Energy has highlighted the importance of building multiple NPPs to meet future energy demands.
«The construction of multiple plants is driven by the projected increase in electricity demand, the need to reduce the carbon footprint and the importance of diversifying the energy mix to ensure energy independence and sustainable economic development. This issue is currently under discussion, and decisions regarding timelines, suitable locations and suppliers of reactor technologies for future NPP projects will be based on an analysis of regional electricity needs, as well as environmental, economic and technological factors,» the ministry stated.
Kazakhstan will need to launch four NPPs with a combined capacity of 9.6 GW by 2060 to meet the country’s growing electricity demand, according to Talgat Temirkhanov, chairman of the Kazakhstan Electrical Power Association, who shared this insight with Kursiv.media in August 2024. Previously, Minister of Energy Almassadam Satkaliyev also emphasized the need for multiple NPPs by 2060, identifying the village of Ulken in the Zhambyl district of the Almaty region, near Lake Balkhash, and the town of Kurchatov in eastern Kazakhstan as potential sites for their construction.
On Jan. 8, 2025, during a visit to the government’s project office in Astana, President Kassym-Jomart Tokayev urged cabinet members to accelerate NPP construction in Kazakhstan. He stated that the country plans to build two, possibly three, nuclear power plants.
Timur Zhantikin, CEO of Kazakhstan Nuclear Power Plants, a subsidiary of Samruk-Kazyna, previously reported that proposals from four international companies indicated the cost of generating 1 kilowatt-hour (kWh) at an NPP in Kazakhstan would be approximately 8 cents. Currently, there are four potential contractors for the country’s first NPP:
– CNNC (China, HPR-1000 reactor).
– Rosatom (Russia, VVER-1200, VVER-1000 reactors).
– KHNP (South Korea, APR-1400 reactor).
– EDF (France, EPR1200 reactor).
Kazakhstan aims to achieve a nuclear capacity of 2.4 GW by 2035. Initial plans focus on constructing one NPP with two units in the village of Ulken. The local population expressed support for the project, which was further confirmed in a national referendum held in October 2024. The referendum resulted in 71.12% of voters supporting the construction of the NPP. The plant will utilize Generation III+ technology, designed to enhance reactor reliability in both standard and emergency accident scenarios.
