Kazakhstan to establish renewable energy fund
By Aynur Jafarova
Kazakhstan's Baiterek National Holding has initiated establishment of the Central Asia Renewable Energy Fund LP, Novosti-Kazakhstan reported on December 11 with reference to the holding.
The Islamic Corporation for Development of Private Sector (ICD), private investor and Baiterek's subsidiary National Agency for Technological Development will form the new fund.
The main goal of the renewable energy fund will be investing in renewable and alternative energy for a period of 8 to 10 years in Kazakhstan. The initial target size of the fund will hit $50 million and then it is expected to be doubled.
The fund will finance the projects only in Kazakhstan's territory. Over two-thirds of its authorized capital will be formed at the expense of private and foreign investment, while the state will invest less than a third of the total share capital.
The fund's activity will be based on the principles of Islamic financing. The list of potential projects which would be financed by the fund has already been prepared.
Participation of the Baiterek Holding in the establishment of the renewable energy fund is a contribution of the holding to the development of 'green economy' in Kazakhstan and preparation of the country to hold EXPO-2017 international exhibition.
ICD is a multilateral financial institute of development and is a part of the Islamic Development Bank.
Established in 2013 Baiterek Holding aims to assist the development and diversification of economy, attracting investments, development of clusters and improvement of corporative management systems in its subsidiary organizations.
Renewable energy, which is commonly called alternative energy, is an alternative to fossil fuels. It comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished.
Experts believe Kazakhstan has to turn to alternative energy sources by 2030, as the traditional sources are being exhausted and their prices are rising. They say about 20-30 percent of domestically consumed energy can be saved through the use of alternative energy.
The share of alternative and renewable energy in the energy basket of Kazakhstan will reach 50 percent by 2050.