Dmitry Pankin: A developed distributed power network would help to tackle both surpluses and shortages of electric power supplies in Kazakhstan
Astana, 22 June 2017. “The power sector should develop both distributed networks and renewable energy sources,” Dmitry Pankin, Chairman of the Management Board at Eurasian Development Bank (EDB), said at the first plenary session on Future Energy of the Foreign Investors Council (FIC) chaired by the President of Kazakhstan.
He pointed out that, while the power system of Kazakhstan continues to generate surplus electricity, new large power plants may encounter the lack of demand and, therefore, their construction may turn to be economically inefficient. “To tackle local shortages of electric power it would be better to build smaller power facilities close to consumption locations,” he added.
“This would improve the reliability of power supplies and reduce power losses during transmission as the distance between generation and consumption points will be shortened. In addition, local power facilities can use more efficient technology to concurrently produce electric and heat energy and this will reduce its prime cost significantly.”
According to the head of EDB, smaller regional projects require less one-off investment and, therefore, involve lower financial risks.
EDB researchers believe that renewable energy does compete already with conventional generation in terms of the prime cost of electricity. Increasing gradually the share of renewable sources in the energy balance with the ageing and decommissioning of coal power plants seems the most weighted strategy both economically and technologically.
Additional Information:
The Foreign Investors Council is an advisory body chaired by the President of Kazakhstan. It was established in 1998 to ensure direct dialogue between the Government of Kazakhstan and foreign investors operating in Kazakhstan in order to address issues relating to their investment activities and improve investment climate in the country. The main objectives of the FIC are to draft recommendations and proposals for the President and the Government of Kazakhstan on key aspects of investment policies and economic development.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
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