The Country Energy Outlook series provides a comprehensive analysis of energy sectors across key countries, examining their structure, performance, and transition pathways within the evolving global energy landscape. The series aims to deliver concise, data-driven insights into how different economies balance energy security, economic growth, and decarbonization.
The first paper in this series focuses on Kazakhstan – Central Asia’s leading energy producer and a major global supplier of oil, gas, coal, and uranium. It explores the country’s energy sector from its historical foundations to its current dynamics and future transformation. While fossil fuels remain central to Kazakhstan’s economy, the report highlights ongoing efforts to diversify the energy mix through natural gas expansion, renewable energy development, and potential nuclear capacity, all within the context of its 2060 carbon neutrality goal. It also assesses the structural and geopolitical challenges that will influence the country’s transition trajectory.
Main Findings
Fossil fuel dominance creates both strength and risk: Coal accounts for around 70% of electricity generation, while oil and gas exports drive economic performance but expose Kazakhstan to global decarbonization pressures.
Geopolitical and export dependencies are significant: Reliance on Russian transit routes remains a key vulnerability, prompting efforts to diversify export corridors toward Europe and Asia.
Renewable energy expansion remains limited: Despite growth, renewables contributed only 5.9% of electricity generation in 2023, constrained by grid capacity and policy inconsistencies.
Structural reforms are critical for transition: Addressing subsidies, regulatory uncertainty, and aging infrastructure is essential to attract investment and meet climate targets.
