Kazakhstan is fast-tracking its renewable energy ambitions with the approval of a landmark Kazakhstan wind energy deal worth $1.4 billion. Partnering with the UAE’s leading clean energy company Masdar, this initiative will deliver a 1-gigawatt (GW) wind power plant and a 300-megawatt (MW) energy storage system in the Zhambyl region — marking a critical step in Kazakhstan’s green energy transition and boosting its renewable energy share by 3%.
Kazakhstan and UAE Strengthen Renewable Energy Partnership
On Wednesday, Kazakhstan’s lower house of parliament, the Mazhilis, formally ratified the strategic agreement with the United Arab Emirates. This ratification clears the path for construction to begin on what is set to become one of the most significant wind energy projects in Central Asia.
The Kazakhstan wind energy deal was initially signed on December 2, 2023, during the COP28 UN Climate Conference in Dubai. It reflects deepening cooperation between Kazakhstan and the UAE in the field of renewable energy. The deal is spearheaded by Masdar, a UAE-based global leader in renewable energy and sustainable urban development.
Erlan Akkenzhenov, Kazakhstan’s Energy Minister, introduced the agreement to parliament and highlighted its importance. “The purpose of the agreement is to build a one-gigawatt wind power plant and a 300 MW energy storage system in the Zhambyl region together with Masdar,” Akkenzhenov said. He called the project a major milestone in Kazakhstan’s renewable energy transition and a symbol of growing ties between Kazakhstan and the UAE to combat climate change.
Details of the 1GW Wind Project and 300MW Storage System
Under the terms of the Kazakhstan wind energy deal, two large-scale wind farms will be developed — each with a capacity of 500 MW. Combined, the wind farms are expected to generate approximately 3.4 billion kilowatt-hours (kWh) of electricity annually. This production will contribute significantly to reducing Kazakhstan’s carbon emissions, with an estimated reduction of nearly 2 million tons of carbon dioxide per year.
A key innovation within this project is the integration of a 300 MW energy storage system — the first of its kind in Kazakhstan. This large-scale storage system will ensure a stable and reliable supply of electricity, especially during periods of peak demand or when wind conditions fluctuate. The advanced storage technology will also enhance Kazakhstan’s power grid flexibility and energy security, making it a valuable asset for the country’s overall infrastructure.
Energy Minister Akkenzhenov emphasized that the Kazakhstan wind energy deal will also provide significant learning opportunities for Kazakh energy professionals. Local engineers, technicians, and grid operators will gain firsthand experience in managing cutting-edge renewable energy infrastructure, strengthening the country’s human capital in clean energy technologies.
Economic and Environmental Impact of the Wind Energy Deal
The Kazakhstan wind energy deal is poised to deliver wide-ranging economic benefits alongside its environmental advantages. The project is expected to attract $1.4 billion in foreign direct investment (FDI), making it one of the largest renewable energy investments in Kazakhstan to date.
During the construction phase, the project will create approximately 1,000 temporary jobs, providing economic stimulus and employment opportunities, particularly in the Zhambyl region. Once operational, the wind farms and storage system are projected to support up to 100 permanent jobs in areas such as operations, maintenance, and administration.
Furthermore, the development plan includes the construction of 425 kilometers of new transmission lines. These lines will improve energy connectivity between northern and southern Kazakhstan, enhancing national energy security and supporting more efficient electricity distribution across the country.
Officials have stated that the project will prioritize the use of local materials, labor, and services wherever feasible. This strategy aims to stimulate domestic industries, encourage new business development, and amplify the project’s long-term economic impact within Kazakhstan.
Kazakhstan’s Renewable Energy Potential and Future Outlook
While Kazakhstan is globally recognized as one of the world’s top crude oil exporters — holding about 3% of proven global oil reserves — the nation also possesses immense untapped potential for renewable energy development.
More than 50% of Kazakhstan’s land area experiences average wind speeds of 4 to 5 meters per second, which is considered sufficient for commercial wind energy production. According to estimates from the United Nations, Kazakhstan’s wind energy potential stands at an astonishing 1.8 trillion kWh per year — nearly ten times the country’s current total electricity consumption.
Solar energy resources are also abundant, with Kazakhstan receiving between 2,200 and 3,000 sunny hours annually. This translates to a theoretical solar energy capacity of 1,300–1,800 kilowatt-hours per square meter each year.
The Kazakhstan wind energy deal with the UAE and Masdar is seen as a flagship project that will lay the foundation for further renewable energy initiatives. The government of Kazakhstan has set ambitious goals to increase the share of renewable energy in its total energy mix to 15% by 2030 and to achieve carbon neutrality by 2060.
Kazakhstan’s green transition is further supported by the country’s strategic location in Central Asia, offering opportunities for cross-border energy trade and regional renewable energy cooperation.
UAE’s Expanding Role in Global Renewable Energy
For the UAE, the Kazakhstan wind energy deal aligns with its broader strategy of investing in renewable energy projects worldwide. Masdar, which is wholly owned by the Mubadala Investment Company, has rapidly expanded its footprint across multiple continents and is now active in more than 40 countries.
Masdar has developed over 20 GW of renewable energy projects globally, with a combined investment value exceeding $30 billion. The company’s portfolio includes wind, solar, waste-to-energy, and hydrogen projects — positioning it as a key player in the global transition to clean energy.
Speaking at the agreement’s signing ceremony in Dubai in December 2023, Masdar CEO Mohamed Jameel Al Ramahi expressed enthusiasm for the partnership. “Kazakhstan is a nation with vast renewable energy potential, and Masdar is proud to collaborate on this transformative wind project that will deliver clean, reliable, and affordable energy while advancing sustainable development,” he said.
Regional and Global Significance
The approval of the Kazakhstan wind energy deal holds significant regional and international implications. It highlights Kazakhstan’s commitment to diversifying its energy mix, reducing greenhouse gas emissions, and aligning with global climate agreements such as the Paris Accord.
The deal also demonstrates growing UAE engagement in Central Asia, as Abu Dhabi continues to expand its renewable energy diplomacy under its broader energy diversification agenda. The partnership may pave the way for additional joint projects in the region, potentially covering solar, hydrogen, and cross-border transmission networks.
As the project progresses, both countries expect to strengthen knowledge exchange and technological collaboration. Kazakh energy professionals will benefit from Masdar’s global expertise in designing, constructing, and managing complex renewable infrastructure.
Conclusion: A Major Step Forward in Kazakhstan’s Green Future
The formal ratification of the Kazakhstan wind energy deal marks a defining moment in Kazakhstan’s journey towards sustainable energy development. With a $1.4 billion investment, the project promises to deliver substantial environmental, economic, and social benefits, while enhancing energy security and grid stability.
As construction moves forward in the Zhambyl region, Kazakhstan will not only reduce its carbon footprint but also set an example for Central Asia on harnessing renewable energy at scale. The collaboration with Masdar underscores Kazakhstan’s readiness to embrace innovative technologies and international partnerships to achieve a greener, more resilient future.
