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Ministry of Investments and Development: Re-equipment of Kazakhstan’s backbone industry will reduce its energy intensity

by September 5, 2017 Market

During today’s press conference following the Government meeting, First Deputy Minister of Investments and Development Alik Aydarbayev explained the reasons for the high energy intensity of Kazakhstan’s economy.

According to him, major work is underway on the energy saving program. The energy intensity of Kazakhstan’s gross domestic product decreased 28% compared to 2008.

We are faced with the task to before 2020 reduce the energy intensity factor 25%, by 2050 � 50%. We are working on this task. Work is carried out on a systematic basis; all necessary laws are signed and adopted, the State energy register has been adopted also. This register includes more than 5 thousand companies, that are legally required to conduct energy audit, develop action plans and work on reducing the energy intensity of their enterprises, – A. Aydarbayev said.

However, despite a significant decline in the energy intensity of industrial GDP, the energy intensity of Kazakhstan’s economy is still quite high. As the speaker notes, there are several reasons contributing to this.

Firstly, this is the structure of the economy as a whole. The economy of Kazakhstan is dominated by extractive, primary industries. They all consume large amounts of electricity. Another factor is the climatic conditions. In comparison with many countries, we are located in a zone where it is necessary to consume a large amount of electricity for heating buildings, � the Deputy Minister said.

Another reason for the high energy intensity, according to Alik Aydarbayev, is the fact that Kazakhstan is still at the stage of economic modernization. And this means that many enterprises are still working on old equipment, using old technologies. Thus, according to him, the currently implemented policy is aimed at re-equipping the basic industries and introducing advanced energy-saving technologies.

Talking about the energy registry, the Deputy Minister stressed that after its introduction, the work became more efficient and effective.

“If earlier all this work was carried out by using paper reports, now an automated system is introduced that allows all entities that are in the registry to provide information automatically in real time, update it periodically. Now it is much easier for our Ministry, as a state body, to monitor the process. It is also easier for audit companies,” � A. Aydarbayev explained.

Source: Government of the Republic of Kazakhstan