Azernews.Az

By Aynur Jafarova

Kazakhstan will establish Central Asia Renewable Energy Fund with the aim of investing in renewable and alternative energy for a period of 8 to 10 years, head of Baiterek Holding Kuandik Bishimbayev said on February 6.

The initial target size of the fund will hit $50 million and then it will be doubled, Bishimbayev said.

He noted that the National Agency for Technological Development, the Islamic Corporation for the Development of the Private Sector and the private investor have signed a memorandum on the establishment of the fund.

The fund will finance 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 list of potential projects that can be financed by the fund has already been approved," Bishimbayev said, adding that the fund's activity will be based on the principles of Islamic financing.

Renewable energy, commonly called alternative energy, is an alternative to fossil fuels, and comes from natural sources such as sunlight, wind, rain, tides, and geothermal heat, which are naturally replenished.

Experts believe that Kazakhstan has to turn to alternative energy sources by 2030, as the traditional sources are being exhausted and their prices are on the rise. They say about 20-30 percent of the domestically consumed energy can be saved by using alternative energy.

Kazakhstan viewed by the CIS countries as a promising market for wind and solar energy plans to commission more than 30 renewable energy facilities by 2020.

The share of alternative and renewable energy in the energy basket of Kazakhstan will reach 50 percent by 2050. Today, about 85 percent of Kazakhstan's electricity comes from coal-fired power plants and close to 9 percent from hydroelectric power plants.