Kazakhstan has begun constructing a series of thermal power plants independently after delays in financing from Russia, Prime Minister Olzhas Bektenov announced on Monday.
The development marks a departure from earlier agreements with Moscow and reflects Astana’s growing preference for energy sector autonomy amid regional uncertainty.
Bektenov stated that construction had already commenced on a thermal power plant (TPP) in Kokshetau without foreign assistance. “We have not received confirmed guarantees of preferential financing from the Russian side,” he told a government press briefing. “Therefore, we have started building on our own in Kokshetau, without turning to anyone.”
The plant in Kokshetau is designed with a projected capacity of 240 megawatts (MW). Two other facilities, in Semey and Ust-Kamenogorsk, each planned at 360 MW, remain on hold as Astana awaits a formal response from Russia. “If we do not receive an answer in the near future, we will also consider implementing those projects independently,” Bektenov said. “We cannot afford to wait long, as we urgently need both heat and electricity.”
The original framework for the construction of the three plants, estimated at a combined value of $2.7 billion, was agreed during Russian President Vladimir Putin’s state visit to Kazakhstan in November 2023. A memorandum was signed by the respective energy ministries of both countries, followed in 2024 by an intergovernmental agreement outlining construction responsibilities and financing arrangements.
Under the terms of that agreement, the Russian state-controlled company Inter RAO was designated as the general contractor. Project financing was to be provided by Russian banks, offering credit lines over a 15-year period. Key construction works were to be subcontracted to affiliated organisations.
However, progress has been hampered by difficulties in securing the promised financial support. In late May, Kazakh Deputy Prime Minister Roman Sklyar acknowledged complications related to interest rate subsidies on the equipment. “There is an issue regarding the subsidisation of the interest rate on the equipment,” he said at the time. “We are still in negotiations. If the matter is not resolved, the investor may change.”
The Kazakh government has since begun exploring alternative partners. Deputy Energy Minister Bakhytzhan Ilyasov confirmed last week that talks are ongoing to identify new investors. He indicated that Kazakhstan could consider energy companies from China or South Korea as potential participants in the project.
The development signals a recalibration in Kazakhstan’s energy strategy, as the government prioritises timely delivery of infrastructure over adherence to previous bilateral arrangements. Power shortages and outdated energy infrastructure remain a persistent issue in parts of the country, prompting a push to increase domestic generation capacity.
Kazakhstan’s decision to move forward unilaterally on the Kokshetau project suggests that confidence in Russian financial guarantees has weakened. It also reflects a broader trend in Central Asia, where energy diversification and reduced reliance on any single partner have become key policy objectives.
The Kokshetau TPP is part of a wider national effort to modernise Kazakhstan’s energy sector, improve reliability, and meet increasing demand amid demographic and industrial growth. Should Astana proceed without Russian involvement on all three sites, the shift may have wider implications for regional cooperation in energy infrastructure development.
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