Kazakhstan ratifies agreement with UAE for 1GW wind farm project

ASTANA. May 12 (Interfax) - Kazakh President Kassym-Jomart Tokayev has signed into law the ratification of an agreement between Kazakhstan and the United Arab Emirates to build a 1GW wind power plant in the Zhambyl Region, the president's press service said Monday.

The agreement was signed in Dubai on December 2, 2023.

Backed by a UAE-Kazakh consortium, the project includes a 300 MW energy storage system to balance supply during peak demand. Electricity is priced at $0.0449 per kWh, a rate officials say accounts for construction costs and investor returns, while remaining competitive.

The Kazakhstan Electricity Grid Operating Company (KEGOC) is responsible for grid integration, while local authorities provide land leases. The agreement guarantees compensation for investors against regulatory changes or competing projects that could affect wind patterns near the site.

Kazakh Energy Minister Almassadam Satkaliyev said that the project would implement Kazakhstan's first large-scale energy storage systems and add 425 km of transmission lines to connect northern and southern grids. The $1.4 billion investment is expected to create 1,100 jobs and generate 3.4 billion kWh of renewable power annually.

The UAE's Masdar and W Solar have an 80% stake in the venture, with Kazakh partners Qazaq Green Power and the national investment fund holding an 18% and 2% stake, respectively.