Russia no longer interested in building thermal power plants in Kazakhstan

Kazakhstan has officially decided to build new thermal power plants (TPPs) in Kokshetau, Semey and Ust-Kamenogorsk independently, according to First Deputy Prime Minister Roman Sklyar. Previously, the country had relied on active participation from Russia in these projects.

«Inter RAO, the Russian company that committed to building the thermal power plants in Kazakhstan, was expected to secure low-interest export financing. Unfortunately, it was unable to do so. As a result, we decided to proceed with the construction of the TPPs on our own,» Sklyar stated.

He added that construction of the thermal power plant in Kokshetau has already entered the active phase and is being supervised by Samruk-Energy.

«The same approach will be applied to the TPPs in Semey and Ust-Kamenogorsk. If our Russian colleagues eventually offer financing, Samruk-Energy can still consider them as partners. There are no barriers to that,» the deputy prime minister emphasized.

Sklyar also noted that the new TPPs will operate without government subsidies and their tariffs will remain within market limits.

In April 2024, the governments of Kazakhstan and Russia signed an agreement to construct three TPPs in Kokshetau, Semey and Ust-Kamenogorsk, with a total estimated value of $2.2 billion and a combined capacity of 1 gigawatt. Under the agreement, Inter RAO was designated as the primary contractor.

However, in late May, Sklyar reported that Russia was facing difficulties financing the supply of equipment for the TPPs in Kazakhstan. He warned that if the Russian side failed to resolve the issue, Kazakhstan would seek alternative investors.