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Determining an optimal strategy for energy investment in Kazakhstan

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  • MacGregor, James

Abstract

The economy of Kazakhstan is locked into reliance on fossil fuel energy sources. Its government is seeking to diversify and deliver sustainable development. We develop an approach to decision-making to support critical decisions over the necessary $67 billion in electricity investments to 2050 that can simultaneously contribute to a sustainable economy. We apply structured decision-making and cost-benefit analysis, align politically by incorporating the collective expertise of an interdisciplinary group of stakeholders to identify Policy Options, commercial assumptions and externalities, and fill data gaps using technical, economic and environmental data from global sources. Our approach quantifies net present value of these identified Policy Options, explores sensitivities, and suggests alternative investment pathway. Our results indicate policymakers should switch from coal and focus on harnessing the commercial and economic advantages of gas and hydropower for electricity generation. These options would be cheaper and have considerably lower emissions and water usage than the current production mix.

Suggested Citation

  • MacGregor, James, 2017. "Determining an optimal strategy for energy investment in Kazakhstan," Energy Policy, Elsevier, vol. 107(C), pages 210-224.
    • Handle: RePEc:eee:enepol:v:107:y:2017:i:c:p:210-224
    DOI: 10.1016/j.enpol.2017.04.039
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    Cited by:

    1. Mouraviev, Nikolai, 2021. "Energy security in Kazakhstan: The consumers’ perspective," Energy Policy, Elsevier, vol. 155(C).
    2. Mouraviev, Nikolai, 2021. "Renewable energy in Kazakhstan: Challenges to policy and governance," Energy Policy, Elsevier, vol. 149(C).
    3. Rasoulinezhad, Ehsan & Sung, Jinsok & Talipova, Amina & Taghizadeh-Hesary, Farhad, 2022. "Analyzing energy trade policy in Central Asia using the intercountry trade force approach," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 441-454.
    4. Bauyrzhan Yessengeldin & Gulzada Mukhamediyeva & Diana Sitenko & Aiman Zhumanova, 2018. "Problems and Perspectives of Energy Security of Single - Industry Towns of the Republic of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 116-121.
    5. Otrachshenko, Vladimir & Hartwell, Christopher A. & Popova, Olga, 2023. "Energy efficiency, market competition, and quality certification: Lessons from Central Asia," Energy Policy, Elsevier, vol. 177(C).
    6. Boute, Anatole, 2020. "Regulatory stability and renewable energy investment: The case of Kazakhstan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    7. Chao Zhou & Dongyu Liu & Pengfei Zhou & Jie Luo & Serhat Yuksel & Hasan Dincer, 2020. "Hybrid Predictive Decision-Making Approach to Emission Reduction Policies for Sustainable Energy Industry," Energies, MDPI, vol. 13(9), pages 1-21, May.

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