The initiative will support Kazakhstan, Uzbekistan, and Kyrgyzstan with a total funding volume of EUR 8 million, including EUR 6 million for Kazakhstan and EUR 1 million each for Uzbekistan and Kyrgyzstan. The project addresses key challenges across the region, including outdated electricity infrastructure and high distribution-level electricity losses of up to 15 percent. Kazakhstan’s carbon intensity, at 0.26 tCO₂ per USD 1,000 of GDP, is approximately twice that of the European Union, underlining the need for targeted energy efficiency measures.
The project is expected to directly avert more than 280,000 tonnes of CO₂ emissions, contributing to sectoral decarbonisation and enhanced regional climate resilience.
Commenting on the initiative, Katarzyna Wawiernia, UNDP Resident Representative in Kazakhstan, highlighted its alignment with national priorities:
“This project marks a significant milestone in Kazakhstan’s journey toward energy efficiency and climate resilience and fully aligns withthe Concept for the Development of Energy Saving and Improving Energy Efficiency in the Republic of Kazakhstan for 2023-2029, and the National Project – Retrofitting of communal and housing sectors – for 2025-2029, promoting energy-saving technologies and reducing transmission losses. It is expected that the project will directly avert more than 280,000 tons of CO2 emissions.”
Analysing existing energy policies and supporting regulatory reforms to modernise electricity grids
Demonstrating advanced technologies for reactive power management
Strengthening financial sector capacities to enable investments in energy efficiency
Supporting regional replication of successful approaches across Central Asia
The Vice Minister of Energy of the Republic of Kazakhstan, Sungat Yesimkhanov, emphasised the dual climate and economic benefits, stating:
”Energy efficiency is the unproduced kilowatt-hours, and thereforethe fuel not burned. We fully support the implementation of this project.”
The announcement took place during a high-level event bringing together government representatives, donors, and technical partners. Participants also discussed updates to the project cycle and a new implementation modality under the Call for Projects 2026, followed by a networking session to foster further collaboration.
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