Adilzhan Kairatuly | 01.10.2024
Benefits and Pitfalls of Alternative Energy Sources on the Economic
Development of Republic of Kazakhstan
Abstract
The research paper explores the growing demand for renewable energy sources in Kazakhstan, driven by environmental, economic, and social factors. The paper highlights the depletion of fossil fuels, rising energy costs, and climate change as key motivations for this transition. Technological advancements and public awareness further enhance the shift toward sustainable energy. The paper analyzes various renewable energy sources in Kazakhstan, such as solar, wind, and hydropower, and examines their economic and environmental impacts.
While renewable energy presents significant economic benefits, including job creation, energy cost reduction, and improved environmental conditions, it also comes with challenges. These include high initial investment costs, infrastructure limitations, and energy production instability. Additionally, developing countries like Kazakhstan face financial risks, as the adoption of renewable energy is often dependent on external factors such as technological development from more advanced countries.
The research concludes by assessing the potential for renewable energy in Kazakhstan, examining successful and unsuccessful projects, and providing insights into the feasibility of further developments in this sector. The paper emphasizes that a strategic, well-supported approach is necessary to overcome challenges and realize the economic and environmental benefits of renewable energy.
Introduction
Currently, there is a significant increase in demand for renewable energy sources. This demand is growing for several reasons related to environmental, economic, and social factors. Firstly, one of the key reasons is climate change and the associated environmental issues. Fossil fuels such as coal, oil, and gas emit carbon dioxide (CO2) and other greenhouse gasses when burned, contributing to global warming. Alternative energy sources like solar and wind power produce significantly fewer CO2 emissions. Moreover, traditional energy sources are often associated with air and water pollution, while alternative energy sources have a smaller impact on ecosystems.
The depletion of traditional energy sources is an important factor. Fossil fuels are finite resources, and their reserves are limited. In contrast, solar energy, wind, geothermal energy, and other renewable resources are available in unlimited quantities. Additionally, the prices of oil and gas can fluctuate significantly due to political and economic factors, making them less reliable in the long term.
Technological progress also plays a significant role in the growing demand for alternative energy sources. Modern technologies are becoming more efficient and accessible, increasing their competitiveness compared to traditional energy sources. Technological advancements and mass production lead to reduced costs of alternative energy technologies, such as solar panels and wind turbines.
Finally, public opinion and social responsibility also contribute to the increasing demand for clean energy. Growing public awareness of the consequences of climate change and the need for sustainable development encourages individuals and organizations to switch to renewable energy sources. Many companies strive to improve their environmental image and meet sustainability requirements, prompting them to use clean energy.
All these factors together contribute to the growing demand for alternative energy sources and their integration into the energy systems of various countries. Increasing attention to environmental issues and the need to reduce carbon footprints promote the development of solar, wind, and hydro energy. Countries worldwide, including Kazakhstan, aim to reduce their dependence on fossil fuels and invest in sustainable energy solutions, accelerating the transition to a more environmentally friendly and economically viable energy system.
Between 2007 and 2017, the total capacity of renewable energy sources worldwide more than doubled, indicating a significant increase in interest and investment in these clean energy sources. The economic benefits of using renewable energy can be substantial: reducing dependence on imported energy carriers, creating new jobs, improving environmental conditions, and reducing healthcare costs.
For example, in Kazakhstan, in the village of Shubar in the Ordabasy district of the Turkestan region, a solar power station allows private entrepreneur Bakhtiyar Yusupov to power his greenhouse and sell surplus energy, earning an additional profit of 500,000 tenge ($1,073). The use of alternative energy sources has also benefited a medium-sized sugar refining enterprise located in the village of Baskuduk in the Munailinsky district of the Mangystau region. This solar power station benefits nearby residents and company employees, and it has reduced the use of diesel generators by almost 90%, positively impacting the polluted area's environment.
However, renewable energy sources can negatively impact economic benefits due to high initial installation and maintenance costs. Infrastructure limitations, energy production instability, and the need for additional investments in grids and energy storage also pose significant financial risks. Moreover, insufficient technological development and dependence on subsidies can hinder achieving economic sustainability and competitiveness in the long term. The role of corruption and the irrational use of budgets cannot be overlooked either. Overall, the introduction of renewable energy sources can adversely affect the economic conditions of many developing countries that cannot afford such investments. For example, in Kazakhstan, the development of renewable energy directly depends on more developed countries like China or Russia.
The aim of this research is to assess the economic benefits or losses from the introduction of alternative energy sources in Kazakhstan. The study will examine current trends in renewable energy development in the country, the economic and environmental aspects of their use, and analyze examples of successful and unsuccessful projects in this field. The results will allow conclusions to be drawn about the prospects and feasibility of further developing renewable energy in Kazakhstan.
Literature review
Present (conventional) energy resources
Coal. Kazakhstan's coal reserves comprise approximately 37 billion tons (4% of world estimated reserves). The primary coal mining areas are the Karaganda and Ekibustuz basins, with enough reserves to last over a century. However, smaller coal deposits in other regions remain underutilized. Nowadays, Kazakhstan produces 120 million tons of coal. Up to 80% of the produced coal is used within the country for the production of electricity and heat generation in thermal power plants. The rest, 22 million tons, is exported. The Government has plans to increase the volume of coal production nearly two times to almost 200 million tons by 2030. Its applications include coal combustion in furnaces, providing heat to mine facilities, and the generation of coke used at industrial enterprises. Unfortunately, it is coal of a high ash content that contributes to pollution, because sulfur and nitrogen oxide flue gas scrubbers are not common in power plants using this fuel. Efforts at promoting alternative fuels can be in the form of coal-bed methane and coal-mine methane. A pilot plant installed in the Lenina mine gives 1.4 MW of electrical power from coal-mine methane. However, such technologies as carbon capture and storage and underground coal gasification are not currently included in Kazakhstan's intentions.
Oil. Kazakhstan has proven on-shore oil reserves in the west of the country which will allow extracting oil for over 30 years, estimated at 30.0 billion barrels (3.9 billion tons) of oil representing 1.8% of world reserves. The country has 172 oil fields and 42 gas condensate fields at the Caspian Sea and overall production in 2013 was 81.8 million tons. Particularly remarkable is that the Fields of Tengiz, Kashagan, and Karachaganak account for more than 50% of the oil produced.
Uranium. Kazakhstan is the world's leader in uranium production. The country has 15% of global uranium resources. This year the country yields 22,550 tonnes of uranium per year and its share in total world production is 38%. Significantly, 90% of Kazakhstan's uranium production is exported. The country's only nuclear power plant, the 90-MW Mangyshlak fast reactor in Aktau, was closed down in 1999 after 27 years of operation, but a cooperation agreement with Russia aims to commission a new nuclear power station as of May 2014.
2.Renewable energy resources and potential in Kazakhstan
Hydropower. Hydropower accounts for roughly 13% percent of Kazakhstan's total generating capacity delivering around 7.78 TWh from 15 large (>50 MW) hydro power stations with a total capacity of 2.248 GW. Large hydropower plants in the country include those at Bukhtyrma (750 MW), Shulbinsk (702 MW) and Ust-Kamenogorsk (315 MW) on the river Irtysh, Kapshagai (364 MW) on the Ili River, Moinak (300 MW) on the Charyn river, and Shardarinskaya (104 MW) on the Syrdarya River. Small (1-10 MW) and medium-scale (10-50 MW) hydropower projects have grown in popularity due to being less costly, reliable and environmentally friendly. There are seven small hydropower plants (<10 MW), with the total installed capacity amounting to 78 MW and the estimated potential–13 TWh, located in the east and south of Kazakhstan, Zhambyl and Almaty provinces.
Wind Power. The vast steppe geography of Kazakhstan makes it an ideal setting for wind power projects. The country's economically realizable wind energy potential is estimated at 760 GW. About 50% of the territory of Kazakhstan has average wind speeds adequate for energy generation, from 4 to 6 m/s. It should be noted that the greatest wind potential in the country is in the area of the Caspian Sea, central regions, and northern regions. The best sites would appear to be in the Almaty region in the Djungar (Dzhumgarian) Gates, 600 km northeast of Almaty close to the Xinjiang border, and the Chylyk Corridor, 100 km east of Almaty. Estimates are that these sites have wind potentials of 525 W/m² in the Djungar Gates and 240 W/m² in the Chylyk corridor. Consequently, wind turbines established here can, therefore, realize energy generation of 4400 kWh/MW and 3200 kWh/MW, respectively. Besides, it has initiated the construction works for Kazakhstan's first wind power plant in Yerementau of the Akmola region. It is designed by 22 FWT2000 2 MW turbines with an installed capacity of 45 MW and a production capacity of 172.2 kWh.
Solar energy. Kazakhstan has areas with high insolation that could be suitable for solar power, in the first place, particularly in the south of the country, receiving between 2200 and 3000 hours of sunlight per year, which equals 1300-1800 kW/m² annually. There are no intentions of building a concentrated solar thermal plant although the government of Kazakhstan has ambitious plans to introduce 1.04 GW of renewable energy capacity.
3.Economic implications.
Economic Value of Renewable Energy.
Job Creation: Investments directed at renewable energy ventures will bring about job creation. For example, installation of wind power creates more jobs in relation to manufacturing, installation, and maintenance. Reduced Energy Costs: Renewable energy sources will gradually reduce the cost of energy to consumers and businesses. Electricity generated using solar panels and wind turbines is created without any fuel cost.
Diversification: Moving to renewables diversifies the energy mix in Kazakhstan and reduces overdependence on fossil fuels, which enhances the security and resilience of the energy system.
Export Opportunities: As a renewable energy champion, Kazakhstan can export excess clean energy to neighboring countries, contributing to cross-border trade and economic growth
Challenges and Considerations.
Initial Investment: Renewables are beneficial in the long term but are often characterized by high initial investments. This, however, is offset with long-term savings.
Infrastructure Development: Renewable energy infrastructure, including such things as wind farms or solar parks, requires planning and financing and coordinated activity.
Policy Support: For promoting the use of renewable energy, effective policies and incentives are vital. Entrepreneurs face challenges like high interest rates and short loan terms when adopting green technologies.
Current Scenario in Kazakhstan.
In 2019, around 16% of Kazakhstan's Gross Domestic Product was associated with the energy sector, including mining and energy supply. But the share of renewable energy remains small compared to that of fossil energy.
The country aims to achieve 50% electricity generation from non-coal or oil sources (including renewables) by 2050, as part of its Green Economy Concept
Renewable energy sources (RES) have the potential to contribute to economic, social, and environmental sustainability. They improve access to energy, reduce emissions, and create local development opportunities. This paper highlights the economic benefits of RES for sustainable development, environmental impact including global warming, advantages and disadvantages, and strategies for optimum exploitation.
Access to affordable and reliable electricity is crucial for eradicating poverty and achieving long-term success. Factors such as livelihoods, water availability, agricultural production, healthcare, and equality for women are impacted by energy access. Social and environmental considerations must be addressed when selecting renewable technologies. The use of renewable energy sources helps protect natural resources and reduce the risks associated with fossil fuels. Solar and wind power have less serious environmental impacts compared to traditional sources.
Renewable energies include land and resources such as sunshine, air, rainfall, waves, and geothermal energy. Solar and wind power are quickly regenerated and can be tied into the local power grid. Biofuel production historically has cost more than fossil fuels, but it includes various commodities that can be used for human consumption. The high cost of solvent extraction is a challenge for producing biofuels from phytoplankton. Dependence on environmentally friendly resources is limited by factors such as weather conditions.
The world will heavily rely on renewable electricity sources in the future. Oil, coal, renewables, and nuclear power are the three main types of energy available. Solar, wind, bioenergy, and groundwater are among the sources used to produce power. Renewable technologies offer opportunities for employment generation, decrease emissions, and improve the quality of life in remote areas. Implementing renewable energy projects in rural areas can boost the local economy.
Conventional power production using fossil fuels is inefficient and harmful to the environment. There is a global push to include more renewable energy sources like solar and wind power to meet energy needs sustainably. Renewable sources have the potential to supply the country's energy needs multiple times over. Achieving a decent standard of living through sustainable development requires the adoption of renewable energy sources.”’
The document discusses the environmental impacts and economic benefits of renewable energy sources such as solar, wind, biomass, hydropower, and geothermal energy. It highlights the challenges and provides recommendations for the effective and efficient utilization of renewable energy in Nigeria. The key points are:1. Renewable energy sources have lower environmental impacts compared to conventional fossil fuels, but face challenges such as financial constraints, technological incapability, lack of comprehensive national energy policy, and low public awareness. Recommendations include increased government support, subsidies, and funding for renewable energy research and development, as well as bridging the gap between research institutions and manufacturing industries.3. The document discusses the global status and trends for different renewable energy technologies, their advantages, disadvantages, and strategies for optimum exploitation.4. Renewable energy is crucial for sustainable development, as it can positively impact various aspects of social, economic, and environmental development.’’’
This pioneering study examines the relationship between renewable energy consumption, urbanization, financial development, and environmental outcomes in South Asian nations. Using panel quantile regression analysis, the study finds that renewable energy consumption has a negative impact on CO2 emissions, particularly in higher quantiles. Urbanization has a positive effect on GDP, while natural resource rent positively impacts both GDP and CO2 emissions. Broad money boosts GDP in lower quantiles but has a negative impact in higher quantiles. The findings suggest that governments should focus on promoting renewable energy consumption and sustainable urbanization to combine economic development with environmental sustainability.
South Asian nations like Pakistan, Bangladesh, and India face challenges in sustaining environmental quality due to factors such as population expansion, urbanization, and industrialization. These nations experience issues like water and air pollution, deforestation, and insufficient waste management. Environmental degradation affects the economy, society, and health, leading to productivity loss, higher healthcare expenses, and vulnerability to natural disasters.
The study focuses on the South Asian Association for Regional Cooperation (SAARC) countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. These countries are chosen for their unique attributes and provide a comprehensive framework for analyzing sustainable development patterns in South Asia. The availability of relevant data facilitates a thorough analysis of the complex relationship between economic development and environmental sustainability.
Urbanization and natural resource utilization are key factors affecting environmental quality in South Asian countries. Urbanization leads to increased demand for resources and energy, resulting in pollution and waste. The overuse of natural resources leads to environmental degradation. Broad money, which refers to the total quantity of money in circulation, also impacts environmental quality. Investigating these factors is essential to understand their consequences on the environment.
Renewable energy consumption is another crucial aspect that affects South Asia's environmental quality. Switching to renewable energy sources can reduce CO2 emissions and mitigate climate change. However, the region faces challenges in adopting renewable energy due to factors like cost. Examining the impact of renewable energy consumption on the ecosystem is therefore crucial.
The study utilizes panel data analysis to evaluate the impact of these variables on CO2 emissions and environmental indicators. The data sources include national statistics and the World Bank's KOF Globalization Index. The results can assist regional stakeholders and policymakers in developing strategies to address environmental deterioration in South Asian nations.
The research aims to contribute to the discourse on balancing economic development with ecological conservation in the SAARC region. The findings provide insights into the relationship between carbon emissions and sustainable economic growth. By informing policy decisions, the study has the potential to mitigate environmental degradation in the region.
Overall, the study highlights the importance of renewable energy consumption and sustainable urbanization in achieving economic development with environmental sustainability in South Asian countries. By addressing environmental challenges through effective policies, governments can promote a greener and more sustainable future.’’’
This study examines the relationship between economic growth, carbon emissions, and industrial structure. It highlights the importance of sustainable urban communities and the need to transition to renewable energy sources. The effects of climate change are impacting regions worldwide, and it is crucial to address environmental degradation and cooperate between developed and less developed countries. The UN conference on climate change has emphasized the urgent need for greenhouse gas emission reduction and the acceleration of renewable energy transition.
The study focuses on two groups of emerging economies in different regions and their efforts to balance economic growth with environmental protection. The growth rates of these economies have been driven by attracting foreign investments in energy-intensive industries. Previous research has confirmed the pollution haven hypothesis for these countries, but there are differences between the European countries and the ASEAN countries. The European countries, now EU members, have adopted stricter environmental regulations and targets for carbon neutrality. Asian economies, particularly the ASEAN countries, have made progress in renewable energy and energy intensity reduction.
The key features of a developed economy include sustained economic growth, urbanization, and industrial development. These features contribute to human welfare and economic development but also pose challenges to the environment. Therefore, policymakers need to find optimal policies to promote growth while curbing environmental degradation. Economic growth is especially important for developing economies, and strategies that prioritize renewable energy and innovation can contribute to both economic development and climate change mitigation.
This research analyzes several emerging economies and their potential for sustainable development. The study aims to fill gaps in the existing literature and explore the nexus between urbanization, financial development, economic growth, industrial structure, and environmental degradation. Achieving sustainable growth and contributing to climate change mitigation are crucial objectives for these economies.’’’
Methodology
The facts revealed by the survey on the use of the alternative energy resource in Kazakhstan and how it will affect the economy are helpful for the general understanding of the public opinion and regions’ outlooks. Here’s a comprehensive analysis based on the data collected:
1. Demographic Breakdown
Respondents of the survey are young and 35 percent of them are between twenty and thirty years old. 8 % in the age group of 18-27 years. This implies that the young people are very active in debates relating to renewable energy. For instance, none of the respondents are of 60 years and above, which implies that older people’s perceptions could not be captured through this survey.
2. Regional Distribution
Thus, according to the geographical distribution of the respondents South Kazakhstan has the maximum number of responses 35% while Northern Kazakhstan responded 29.2%. This may mean the institutions in these regions may be more interested in or have a better access to the alternative energy resources. On the other hand, western Kazakhstan has a comparatively low respondent rate 8.3 % which may in a way mean less interested or fewer available sources for the alternative energy. Equally allowed but less represented is Central Kazakhstan claiming 17. 5%, and East Kazakhstan with 10% representation
The option that comes out on top of the poll is solar energy as 70 of the respondents designate it as the most available type of alternative energy. 8% of respondents. Hydro power is the second with 53. 3% of the population Using coal power, 20. 7% of respondents. No respondent reported they are using geothermal energy, possibly because the area of the country is not endowed with the resource, or has not invested in it. Additionally, 19. Finally, there are the respondents who reported that their region does not offer any sources of alternative energy, which implies a highly prospective field.
4. Economic Impact Perception
Respondents have varied views on the economic benefits of alternative energy:Respondents have varied views on the economic benefits of alternative energy: It’s noteworthy that 45% of the participants are convinced that the process will create economic benefits. 25.8% percent of the respondents believe that outsourcing will not pose a major impact to the economy. 22.5% say that it may have risks which may incur losses. 6.7% of surveyed people stated that they have difficulties with it. This spectrum of thinking can be caused by the tendencies to be optimistic in terms of economical contributions of alternative energy to Kazakhstan.
5. Initial Investment Assessment
Opinions on the justification of initial investments in alternative energy are diverse:
11.7% view high initial costs as justified in the long term. 30.8% feel the costs are high and not justifiable. 29.2% think the costs are sufficient. 18.3% consider the costs unreasonably low. 10% believe the costs are justifiably low. This spread indicates significant concern over the financial burden of transitioning to alternative energy compared to traditional sources.
6. Job Creation Potential
There is a generally positive view on job creation related to alternative energy: 28.3% completely agree that it can create new jobs. 40.8% partially agree. 18.3% disagree. 12.5% find it difficult to answer. This reflects a broadly favorable perspective on how alternative energy might contribute to employment.
7. Barriers to Development
The main barriers to the development of alternative energy in Kazakhstan are: Low awareness of the population (45%). Lack of technology and infrastructure (29.2%). High initial costs (19.2%). Political and legislative barriers (6.7%). Addressing the low awareness and infrastructure challenges could be crucial in advancing alternative energy in the country.
Looking to the future, respondents have diverse expectations for the economic impact of alternative energy: 20% anticipate a strong positive influence. 33.3% expect a weakly positive effect. 17.5% foresee a weakly unprofitable impact. 6.7% think it will be highly unprofitable. 12.5% believe it will have a minor impact.
Analysis of Survey Results on Alternative Energy in Kazakhstan
The survey on alternative energy in Kazakhstan offers a glimpse into how people across different regions and age groups perceive the future of energy in their country. Here’s a more personal take on the findings:
1. Who Took the Survey?
Most of the survey participants are young, with 35.8% between 18 and 27 years old. This suggests that younger people are really paying attention to the future of energy in Kazakhstan. It's worth noting that there weren’t any respondents over 60, so we might be missing some valuable insights from older generations who have seen the country’s energy landscape evolve over time.
2. Where Are They From?
A significant portion of respondents come from South Kazakhstan (35%) and Northern Kazakhstan (29.2%). This could mean that people in these areas are more aware of or interested in alternative energy. Meanwhile, only 8.3% of the respondents are from Western Kazakhstan, which might suggest that either alternative energy isn't as big of a topic there or it simply hasn't gained as much traction yet. Central and East Kazakhstan also have their voices represented, but to a lesser extent.
3. What Energy Sources Are Available?
Solar energy seems to be shining the brightest, with 70.8% of respondents reporting its availability in their regions. Hydro power is also fairly common, with 53.3% of people saying it’s an option where they live, and 36.7% have access to wind power. Geothermal energy, on the other hand, hasn’t made any headway—nobody reported its availability. Alarmingly, 19.2% of respondents said they have no alternative energy sources at all, highlighting a significant gap that needs to be addressed.
4. How Do People View the Economic Impact?
Opinions on whether alternative energy will benefit Kazakhstan’s economy are pretty mixed: 45% are optimistic, believing it will bring economic benefits; 25.8% think it won’t make much of a difference; 22.5% are worried it could actually lead to economic losses; 6.7% aren’t sure what to think. This range of opinions shows that while many are hopeful, there’s still a lot of uncertainty and concern about the economic implications.
5. What About the Costs?
When it comes to the initial costs of investing in alternative energy, people have different views: 11.7% think the high costs are worth it in the long run; 30.8% feel that these costs are too high and not justified; 29.2% believe the costs are about right; 18.3% actually think the costs are unreasonably low; 10% consider the costs justifiably low. This spread of opinions suggests that many are concerned about the financial burden of switching to alternative energy, especially when compared to traditional sources like coal, oil, and gas.
6. Can Alternative Energy Create Jobs?
The idea that alternative energy could lead to new job opportunities is generally well-received:
28.3% fully agree that it can create new jobs; 40.8% partially agree, seeing some potential; 18.3% don’t think it will make a difference in job creation; 12.5% are unsure; overall, there’s a positive outlook on the potential for job creation in the alternative energy sector, which could be a big plus for the economy.
7. What Are the Main Barriers?
The biggest challenge to developing alternative energy in Kazakhstan seems to be a lack of public awareness, with 45% of respondents citing this as a major issue. The next big hurdle is the lack of technology and infrastructure (29.2%), followed by high initial costs (19.2%). Political and legislative barriers are less of a concern, with only 6.7% seeing them as a major obstacle. This suggests that improving education and building the necessary infrastructure could make a big difference.
8. What Does the Future Hold?
Looking ahead, people have mixed expectations about how alternative energy will impact Kazakhstan’s economy:
20% are optimistic, expecting a strong positive influence; 33.3% think it will have a mildly positive effect; 17.5% worry it could have a weakly negative impact; 6.7% believe it could be highly unprofitable; 12.5% think it will only have a minor impact.
This mix of views shows that while many people see potential benefits, there’s also a fair amount of uncertainty about what the future holds.
Steps to Assess and Calculate the Economic Benefit or Loss:
1. Current Energy Profile and Costs:
Determine Kazakhstan’s current energy mix, including the proportion of energy generated from fossil fuels versus renewable sources.
Analyze the costs associated with current fossil fuel-based energy production, including fuel costs, operation and maintenance, and environmental costs.
2. Investment in Alternative Energy:
Estimate the capital investment required to transition to alternative energy sources such as wind, solar, hydro, and biomass.
Consider the costs of building new infrastructure, integrating renewable energy into the grid, and potential subsidies or incentives.
3. Cost of Renewable Energy:
Calculate the levelized cost of electricity (LCOE) for various renewable energy sources in Kazakhstan. The LCOE includes capital costs, operation and maintenance costs, and the cost of capital over the life of the energy plant.
Compare the LCOE of renewable energy sources with that of traditional fossil fuels.
4. Economic Benefits:
Cost Savings: Estimate the potential savings from reduced reliance on imported fossil fuels and the reduced environmental and health costs associated with lower emissions.
Job Creation: Analyze the potential for job creation in the renewable energy sector, including manufacturing, installation, and maintenance of renewable energy infrastructure.
Energy Security: Assess the impact on energy security and the stability of energy prices due to diversification of energy sources.
5. Environmental and Social Impact:
Quantify the reduction in greenhouse gas emissions and other pollutants as a result of switching to renewable energy.
Assess the long-term benefits related to public health and the environment, which might translate into economic benefits through reduced healthcare costs and improved quality of life.
6.Scenario Analysis
Conduct a scenario analysis comparing different levels of investment in renewable energy (e.g., low, medium, and high investment scenarios).
Calculate the net present value (NPV) and the internal rate of return (IRR) for these scenarios to assess the long-term economic impact.
To illustrate, let’s assume:
Current energy mix: 70% fossil fuels, 30% renewable energy.
Investment requirement: $10 billion over 10 years to increase renewable energy to 50% of the energy mix.
LCOE for renewable energy: $0.06 per kWh.
LCOE for fossil fuels: $0.08 per kWh.
Annual energy demand: 100 TWh.
Reduction in healthcare costs due to lower emissions: $1 billion annually.
Cost Comparison:
Current fossil fuel energy cost: 70 TWh * $0.08/kWh = $5.6 billion annually.
Future renewable energy cost: 50 TWh * $0.06/kWh = $3 billion annually.
Savings in energy production: $5.6 billion - $3 billion = $2.6 billion annually.
Total Benefits:
Annual savings from energy production: $2.6 billion.
Reduction in healthcare costs: $1 billion.
Total annual economic benefit: $2.6 billion + $1 billion = $3.6 billion.
Investment Analysis:
Total investment: $10 billion.
Payback period: $10 billion / $3.6 billion ≈ 2.8 years.
This simplified analysis suggests that Kazakhstan could experience significant economic benefits from increasing its investment in renewable energy. The actual benefits would depend on various factors such as the rate of technological advancements, global energy prices, and government policies.
DISCUSSION
The survey data on alternative energy in Kazakhstan provides a comprehensive look at the economic benefits and challenges associated with transitioning to renewable energy sources. The results highlight key factors such as demographic engagement, regional distribution, energy accessibility, and perceptions of economic impact, all of which play crucial roles in shaping the potential economic outcomes of adopting alternative energy.
A significant finding is the high level of engagement among younger demographics, with 35% of respondents between the ages of 20 and 30, and 8% between 18 and 27. This suggests that the younger population is actively participating in debates around renewable energy, which bodes well for the future. Their interest and involvement could drive demand for alternative energy solutions, leading to increased support for policies and investments in this sector. This demographic’s enthusiasm can be a catalyst for economic growth, as they are likely to advocate for and adopt renewable energy, contributing to a more sustainable energy market.
Regionally, the data shows that South Kazakhstan (35%) and North Kazakhstan (29.2%) have the highest number of respondents, indicating a greater interest in or access to alternative energy resources in these areas. In contrast, Western Kazakhstan, with only 8.3% of respondents, appears less engaged or has fewer resources available for alternative energy development. This disparity suggests that economic benefits from alternative energy might be concentrated in regions with higher engagement and better infrastructure. These regions could attract more investment and development, leading to regional economic growth driven by the renewable energy sector.
In terms of energy accessibility, solar energy emerges as the most available and preferred option, with 70% of respondents identifying it as the top alternative energy source. Hydropower follows with 53.3%, while coal remains in use by 20.7% of respondents. The absence of geothermal energy use may indicate either a lack of natural resources or insufficient investment in this area. The popularity and accessibility of solar energy suggest that it could be a primary focus for economic benefits, helping to reduce energy costs and reliance on fossil fuels. This shift could lead to substantial savings for both consumers and the economy at large.
The perception of economic impact is varied among respondents. While 45% believe that alternative energy will bring economic benefits, 25.8% think it will have little impact, and 22.5% foresee potential risks that could lead to losses. This spectrum of opinions reflects both optimism and caution regarding the economic contributions of alternative energy to Kazakhstan. The significant portion of optimistic respondents suggests a strong belief in the potential for positive economic outcomes, which could drive further investment and policy support in the renewable energy sector.
However, opinions on the justification of initial investments in alternative energy are mixed. Only 11.7% of respondents view high initial costs as justified in the long term, while 30.8% feel these costs are too high and unjustifiable. This concern over financial burdens presents a potential barrier to widespread adoption. Addressing these concerns through financial incentives, subsidies, or technological advancements could make alternative energy more financially viable and unlock significant economic benefits.
The potential for job creation in the renewable energy sector is another positive economic aspect, with 28.3% of respondents completely agreeing and 40.8% partially agreeing that alternative energy can create new jobs. This positive outlook on employment opportunities suggests that the transition to renewable energy could stimulate local economies, particularly in regions where traditional energy sources are being phased out.
Despite the positive aspects, several barriers to the development of alternative energy in Kazakhstan remain. The survey identifies low awareness among the population (45%), lack of technology and infrastructure (29.2%), and high initial costs (19.2%) as the main challenges. Overcoming these barriers, particularly by increasing public awareness and developing necessary infrastructure, is crucial for advancing the alternative energy sector. Doing so could lead to significant economic benefits, including job creation, reduced energy costs, and increased energy security.
Looking to the future, respondents have mixed expectations for the economic impact of alternative energy. While 20% anticipate a strong positive influence, 33.3% expect only a weakly positive effect, and smaller percentages foresee negative impacts. This uncertainty highlights the need for careful management and strategic planning to ensure that the transition to alternative energy yields the maximum economic benefits.
CONCLUSION
In conclusion, the economic benefits of using alternative energy sources in Kazakhstan are significant and multifaceted, with the potential to create substantial long-term advantages for the country. As global demand for renewable energy continues to rise due to environmental, economic, and social factors, Kazakhstan stands at a pivotal moment to capitalize on this shift. The growing awareness of climate change, the depletion of fossil fuel reserves, and the increasing efficiency and affordability of alternative energy technologies all point toward the urgent need for Kazakhstan to transition to cleaner, more sustainable energy solutions.
The environmental benefits of renewable energy are clear. Fossil fuels such as coal, oil, and gas are finite resources that contribute heavily to greenhouse gas emissions and pollution, both of which exacerbate climate change and environmental degradation. In contrast, alternative energy sources like solar and wind power produce far fewer carbon emissions and have a much smaller impact on ecosystems. These sources of energy are not only more sustainable but also more abundant and reliable in the long term, positioning Kazakhstan to reduce its reliance on traditional energy sources and mitigate the environmental costs associated with fossil fuel consumption.
From an economic perspective, the shift toward renewable energy presents numerous opportunities for Kazakhstan. As evidenced by successful projects like Bakhtiyar Yusupov's solar-powered greenhouse and the medium-sized sugar refinery in Baskuduk, renewable energy has the potential to create new revenue streams and improve the livelihoods of local businesses and communities. By reducing reliance on imported energy carriers and fossil fuels, Kazakhstan can improve its energy security and stabilize its economy in the face of fluctuating oil and gas prices. Moreover, renewable energy projects can generate significant job creation, particularly in regions with high interest and accessibility to these technologies. This not only supports economic growth but also contributes to social development by engaging the younger population and building a workforce skilled in green technologies.
Despite these benefits, Kazakhstan faces several challenges in its transition to renewable energy. The high initial costs of installation and maintenance, combined with infrastructure limitations, represent significant financial hurdles. Renewable energy production can be unstable, and additional investments are required to develop the grids and energy storage systems necessary to support a fully integrated renewable energy infrastructure. The economic risks associated with these investments are further complicated by Kazakhstan's reliance on more developed countries like China and Russia for technological advancements and subsidies. Corruption and inefficient use of budgets also pose barriers to achieving economic sustainability and long-term competitiveness in the renewable energy sector.
Nevertheless, these challenges are not insurmountable. By addressing financial and infrastructural barriers and strategically managing the transition, Kazakhstan can unlock the full economic potential of alternative energy sources. This will require a coordinated effort to leverage job creation opportunities, foster international partnerships, and ensure that renewable energy projects are implemented in regions where they are most viable. Engaging the younger population and promoting education and training in renewable energy technologies will be crucial to building a skilled workforce capable of driving the country’s transition to a sustainable energy system.
The research paper explores the growing demand for renewable energy sources in Kazakhstan, driven by environmental, economic, and social factors. The paper highlights the depletion of fossil fuels, rising energy costs, and climate change as key motivations for this transition. Technological advancements and public awareness further enhance the shift toward sustainable energy. The paper analyzes various renewable energy sources in Kazakhstan, such as solar, wind, and hydropower, and examines their economic and environmental impacts.
While renewable energy presents significant economic benefits, including job creation, energy cost reduction, and improved environmental conditions, it also comes with challenges. These include high initial investment costs, infrastructure limitations, and energy production instability. Additionally, developing countries like Kazakhstan face financial risks, as the adoption of renewable energy is often dependent on external factors such as technological development from more advanced countries.
The research concludes by assessing the potential for renewable energy in Kazakhstan, examining successful and unsuccessful projects, and providing insights into the feasibility of further developments in this sector. The paper emphasizes that a strategic, well-supported approach is necessary to overcome challenges and realize the economic and environmental benefits of renewable energy.
Introduction
Currently, there is a significant increase in demand for renewable energy sources. This demand is growing for several reasons related to environmental, economic, and social factors. Firstly, one of the key reasons is climate change and the associated environmental issues. Fossil fuels such as coal, oil, and gas emit carbon dioxide (CO2) and other greenhouse gasses when burned, contributing to global warming. Alternative energy sources like solar and wind power produce significantly fewer CO2 emissions. Moreover, traditional energy sources are often associated with air and water pollution, while alternative energy sources have a smaller impact on ecosystems.
The depletion of traditional energy sources is an important factor. Fossil fuels are finite resources, and their reserves are limited. In contrast, solar energy, wind, geothermal energy, and other renewable resources are available in unlimited quantities. Additionally, the prices of oil and gas can fluctuate significantly due to political and economic factors, making them less reliable in the long term.
Technological progress also plays a significant role in the growing demand for alternative energy sources. Modern technologies are becoming more efficient and accessible, increasing their competitiveness compared to traditional energy sources. Technological advancements and mass production lead to reduced costs of alternative energy technologies, such as solar panels and wind turbines.
Finally, public opinion and social responsibility also contribute to the increasing demand for clean energy. Growing public awareness of the consequences of climate change and the need for sustainable development encourages individuals and organizations to switch to renewable energy sources. Many companies strive to improve their environmental image and meet sustainability requirements, prompting them to use clean energy.
All these factors together contribute to the growing demand for alternative energy sources and their integration into the energy systems of various countries. Increasing attention to environmental issues and the need to reduce carbon footprints promote the development of solar, wind, and hydro energy. Countries worldwide, including Kazakhstan, aim to reduce their dependence on fossil fuels and invest in sustainable energy solutions, accelerating the transition to a more environmentally friendly and economically viable energy system.
Between 2007 and 2017, the total capacity of renewable energy sources worldwide more than doubled, indicating a significant increase in interest and investment in these clean energy sources. The economic benefits of using renewable energy can be substantial: reducing dependence on imported energy carriers, creating new jobs, improving environmental conditions, and reducing healthcare costs.
For example, in Kazakhstan, in the village of Shubar in the Ordabasy district of the Turkestan region, a solar power station allows private entrepreneur Bakhtiyar Yusupov to power his greenhouse and sell surplus energy, earning an additional profit of 500,000 tenge ($1,073). The use of alternative energy sources has also benefited a medium-sized sugar refining enterprise located in the village of Baskuduk in the Munailinsky district of the Mangystau region. This solar power station benefits nearby residents and company employees, and it has reduced the use of diesel generators by almost 90%, positively impacting the polluted area's environment.
However, renewable energy sources can negatively impact economic benefits due to high initial installation and maintenance costs. Infrastructure limitations, energy production instability, and the need for additional investments in grids and energy storage also pose significant financial risks. Moreover, insufficient technological development and dependence on subsidies can hinder achieving economic sustainability and competitiveness in the long term. The role of corruption and the irrational use of budgets cannot be overlooked either. Overall, the introduction of renewable energy sources can adversely affect the economic conditions of many developing countries that cannot afford such investments. For example, in Kazakhstan, the development of renewable energy directly depends on more developed countries like China or Russia.
The aim of this research is to assess the economic benefits or losses from the introduction of alternative energy sources in Kazakhstan. The study will examine current trends in renewable energy development in the country, the economic and environmental aspects of their use, and analyze examples of successful and unsuccessful projects in this field. The results will allow conclusions to be drawn about the prospects and feasibility of further developing renewable energy in Kazakhstan.
Literature review
Present (conventional) energy resources
Coal. Kazakhstan's coal reserves comprise approximately 37 billion tons (4% of world estimated reserves). The primary coal mining areas are the Karaganda and Ekibustuz basins, with enough reserves to last over a century. However, smaller coal deposits in other regions remain underutilized. Nowadays, Kazakhstan produces 120 million tons of coal. Up to 80% of the produced coal is used within the country for the production of electricity and heat generation in thermal power plants. The rest, 22 million tons, is exported. The Government has plans to increase the volume of coal production nearly two times to almost 200 million tons by 2030. Its applications include coal combustion in furnaces, providing heat to mine facilities, and the generation of coke used at industrial enterprises. Unfortunately, it is coal of a high ash content that contributes to pollution, because sulfur and nitrogen oxide flue gas scrubbers are not common in power plants using this fuel. Efforts at promoting alternative fuels can be in the form of coal-bed methane and coal-mine methane. A pilot plant installed in the Lenina mine gives 1.4 MW of electrical power from coal-mine methane. However, such technologies as carbon capture and storage and underground coal gasification are not currently included in Kazakhstan's intentions.
Oil. Kazakhstan has proven on-shore oil reserves in the west of the country which will allow extracting oil for over 30 years, estimated at 30.0 billion barrels (3.9 billion tons) of oil representing 1.8% of world reserves. The country has 172 oil fields and 42 gas condensate fields at the Caspian Sea and overall production in 2013 was 81.8 million tons. Particularly remarkable is that the Fields of Tengiz, Kashagan, and Karachaganak account for more than 50% of the oil produced.
Uranium. Kazakhstan is the world's leader in uranium production. The country has 15% of global uranium resources. This year the country yields 22,550 tonnes of uranium per year and its share in total world production is 38%. Significantly, 90% of Kazakhstan's uranium production is exported. The country's only nuclear power plant, the 90-MW Mangyshlak fast reactor in Aktau, was closed down in 1999 after 27 years of operation, but a cooperation agreement with Russia aims to commission a new nuclear power station as of May 2014.
2.Renewable energy resources and potential in Kazakhstan
Hydropower. Hydropower accounts for roughly 13% percent of Kazakhstan's total generating capacity delivering around 7.78 TWh from 15 large (>50 MW) hydro power stations with a total capacity of 2.248 GW. Large hydropower plants in the country include those at Bukhtyrma (750 MW), Shulbinsk (702 MW) and Ust-Kamenogorsk (315 MW) on the river Irtysh, Kapshagai (364 MW) on the Ili River, Moinak (300 MW) on the Charyn river, and Shardarinskaya (104 MW) on the Syrdarya River. Small (1-10 MW) and medium-scale (10-50 MW) hydropower projects have grown in popularity due to being less costly, reliable and environmentally friendly. There are seven small hydropower plants (<10 MW), with the total installed capacity amounting to 78 MW and the estimated potential–13 TWh, located in the east and south of Kazakhstan, Zhambyl and Almaty provinces.
Wind Power. The vast steppe geography of Kazakhstan makes it an ideal setting for wind power projects. The country's economically realizable wind energy potential is estimated at 760 GW. About 50% of the territory of Kazakhstan has average wind speeds adequate for energy generation, from 4 to 6 m/s. It should be noted that the greatest wind potential in the country is in the area of the Caspian Sea, central regions, and northern regions. The best sites would appear to be in the Almaty region in the Djungar (Dzhumgarian) Gates, 600 km northeast of Almaty close to the Xinjiang border, and the Chylyk Corridor, 100 km east of Almaty. Estimates are that these sites have wind potentials of 525 W/m² in the Djungar Gates and 240 W/m² in the Chylyk corridor. Consequently, wind turbines established here can, therefore, realize energy generation of 4400 kWh/MW and 3200 kWh/MW, respectively. Besides, it has initiated the construction works for Kazakhstan's first wind power plant in Yerementau of the Akmola region. It is designed by 22 FWT2000 2 MW turbines with an installed capacity of 45 MW and a production capacity of 172.2 kWh.
Solar energy. Kazakhstan has areas with high insolation that could be suitable for solar power, in the first place, particularly in the south of the country, receiving between 2200 and 3000 hours of sunlight per year, which equals 1300-1800 kW/m² annually. There are no intentions of building a concentrated solar thermal plant although the government of Kazakhstan has ambitious plans to introduce 1.04 GW of renewable energy capacity.
3.Economic implications.
Economic Value of Renewable Energy.
Job Creation: Investments directed at renewable energy ventures will bring about job creation. For example, installation of wind power creates more jobs in relation to manufacturing, installation, and maintenance. Reduced Energy Costs: Renewable energy sources will gradually reduce the cost of energy to consumers and businesses. Electricity generated using solar panels and wind turbines is created without any fuel cost.
Diversification: Moving to renewables diversifies the energy mix in Kazakhstan and reduces overdependence on fossil fuels, which enhances the security and resilience of the energy system.
Export Opportunities: As a renewable energy champion, Kazakhstan can export excess clean energy to neighboring countries, contributing to cross-border trade and economic growth
Challenges and Considerations.
Initial Investment: Renewables are beneficial in the long term but are often characterized by high initial investments. This, however, is offset with long-term savings.
Infrastructure Development: Renewable energy infrastructure, including such things as wind farms or solar parks, requires planning and financing and coordinated activity.
Policy Support: For promoting the use of renewable energy, effective policies and incentives are vital. Entrepreneurs face challenges like high interest rates and short loan terms when adopting green technologies.
Current Scenario in Kazakhstan.
In 2019, around 16% of Kazakhstan's Gross Domestic Product was associated with the energy sector, including mining and energy supply. But the share of renewable energy remains small compared to that of fossil energy.
The country aims to achieve 50% electricity generation from non-coal or oil sources (including renewables) by 2050, as part of its Green Economy Concept
Renewable energy sources (RES) have the potential to contribute to economic, social, and environmental sustainability. They improve access to energy, reduce emissions, and create local development opportunities. This paper highlights the economic benefits of RES for sustainable development, environmental impact including global warming, advantages and disadvantages, and strategies for optimum exploitation.
Access to affordable and reliable electricity is crucial for eradicating poverty and achieving long-term success. Factors such as livelihoods, water availability, agricultural production, healthcare, and equality for women are impacted by energy access. Social and environmental considerations must be addressed when selecting renewable technologies. The use of renewable energy sources helps protect natural resources and reduce the risks associated with fossil fuels. Solar and wind power have less serious environmental impacts compared to traditional sources.
Renewable energies include land and resources such as sunshine, air, rainfall, waves, and geothermal energy. Solar and wind power are quickly regenerated and can be tied into the local power grid. Biofuel production historically has cost more than fossil fuels, but it includes various commodities that can be used for human consumption. The high cost of solvent extraction is a challenge for producing biofuels from phytoplankton. Dependence on environmentally friendly resources is limited by factors such as weather conditions.
The world will heavily rely on renewable electricity sources in the future. Oil, coal, renewables, and nuclear power are the three main types of energy available. Solar, wind, bioenergy, and groundwater are among the sources used to produce power. Renewable technologies offer opportunities for employment generation, decrease emissions, and improve the quality of life in remote areas. Implementing renewable energy projects in rural areas can boost the local economy.
Conventional power production using fossil fuels is inefficient and harmful to the environment. There is a global push to include more renewable energy sources like solar and wind power to meet energy needs sustainably. Renewable sources have the potential to supply the country's energy needs multiple times over. Achieving a decent standard of living through sustainable development requires the adoption of renewable energy sources.”’
The document discusses the environmental impacts and economic benefits of renewable energy sources such as solar, wind, biomass, hydropower, and geothermal energy. It highlights the challenges and provides recommendations for the effective and efficient utilization of renewable energy in Nigeria. The key points are:1. Renewable energy sources have lower environmental impacts compared to conventional fossil fuels, but face challenges such as financial constraints, technological incapability, lack of comprehensive national energy policy, and low public awareness. Recommendations include increased government support, subsidies, and funding for renewable energy research and development, as well as bridging the gap between research institutions and manufacturing industries.3. The document discusses the global status and trends for different renewable energy technologies, their advantages, disadvantages, and strategies for optimum exploitation.4. Renewable energy is crucial for sustainable development, as it can positively impact various aspects of social, economic, and environmental development.’’’
This pioneering study examines the relationship between renewable energy consumption, urbanization, financial development, and environmental outcomes in South Asian nations. Using panel quantile regression analysis, the study finds that renewable energy consumption has a negative impact on CO2 emissions, particularly in higher quantiles. Urbanization has a positive effect on GDP, while natural resource rent positively impacts both GDP and CO2 emissions. Broad money boosts GDP in lower quantiles but has a negative impact in higher quantiles. The findings suggest that governments should focus on promoting renewable energy consumption and sustainable urbanization to combine economic development with environmental sustainability.
South Asian nations like Pakistan, Bangladesh, and India face challenges in sustaining environmental quality due to factors such as population expansion, urbanization, and industrialization. These nations experience issues like water and air pollution, deforestation, and insufficient waste management. Environmental degradation affects the economy, society, and health, leading to productivity loss, higher healthcare expenses, and vulnerability to natural disasters.
The study focuses on the South Asian Association for Regional Cooperation (SAARC) countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. These countries are chosen for their unique attributes and provide a comprehensive framework for analyzing sustainable development patterns in South Asia. The availability of relevant data facilitates a thorough analysis of the complex relationship between economic development and environmental sustainability.
Urbanization and natural resource utilization are key factors affecting environmental quality in South Asian countries. Urbanization leads to increased demand for resources and energy, resulting in pollution and waste. The overuse of natural resources leads to environmental degradation. Broad money, which refers to the total quantity of money in circulation, also impacts environmental quality. Investigating these factors is essential to understand their consequences on the environment.
Renewable energy consumption is another crucial aspect that affects South Asia's environmental quality. Switching to renewable energy sources can reduce CO2 emissions and mitigate climate change. However, the region faces challenges in adopting renewable energy due to factors like cost. Examining the impact of renewable energy consumption on the ecosystem is therefore crucial.
The study utilizes panel data analysis to evaluate the impact of these variables on CO2 emissions and environmental indicators. The data sources include national statistics and the World Bank's KOF Globalization Index. The results can assist regional stakeholders and policymakers in developing strategies to address environmental deterioration in South Asian nations.
The research aims to contribute to the discourse on balancing economic development with ecological conservation in the SAARC region. The findings provide insights into the relationship between carbon emissions and sustainable economic growth. By informing policy decisions, the study has the potential to mitigate environmental degradation in the region.
Overall, the study highlights the importance of renewable energy consumption and sustainable urbanization in achieving economic development with environmental sustainability in South Asian countries. By addressing environmental challenges through effective policies, governments can promote a greener and more sustainable future.’’’
This study examines the relationship between economic growth, carbon emissions, and industrial structure. It highlights the importance of sustainable urban communities and the need to transition to renewable energy sources. The effects of climate change are impacting regions worldwide, and it is crucial to address environmental degradation and cooperate between developed and less developed countries. The UN conference on climate change has emphasized the urgent need for greenhouse gas emission reduction and the acceleration of renewable energy transition.
The study focuses on two groups of emerging economies in different regions and their efforts to balance economic growth with environmental protection. The growth rates of these economies have been driven by attracting foreign investments in energy-intensive industries. Previous research has confirmed the pollution haven hypothesis for these countries, but there are differences between the European countries and the ASEAN countries. The European countries, now EU members, have adopted stricter environmental regulations and targets for carbon neutrality. Asian economies, particularly the ASEAN countries, have made progress in renewable energy and energy intensity reduction.
The key features of a developed economy include sustained economic growth, urbanization, and industrial development. These features contribute to human welfare and economic development but also pose challenges to the environment. Therefore, policymakers need to find optimal policies to promote growth while curbing environmental degradation. Economic growth is especially important for developing economies, and strategies that prioritize renewable energy and innovation can contribute to both economic development and climate change mitigation.
This research analyzes several emerging economies and their potential for sustainable development. The study aims to fill gaps in the existing literature and explore the nexus between urbanization, financial development, economic growth, industrial structure, and environmental degradation. Achieving sustainable growth and contributing to climate change mitigation are crucial objectives for these economies.’’’
Methodology
The facts revealed by the survey on the use of the alternative energy resource in Kazakhstan and how it will affect the economy are helpful for the general understanding of the public opinion and regions’ outlooks. Here’s a comprehensive analysis based on the data collected:
1. Demographic Breakdown
Respondents of the survey are young and 35 percent of them are between twenty and thirty years old. 8 % in the age group of 18-27 years. This implies that the young people are very active in debates relating to renewable energy. For instance, none of the respondents are of 60 years and above, which implies that older people’s perceptions could not be captured through this survey.
2. Regional Distribution
Thus, according to the geographical distribution of the respondents South Kazakhstan has the maximum number of responses 35% while Northern Kazakhstan responded 29.2%. This may mean the institutions in these regions may be more interested in or have a better access to the alternative energy resources. On the other hand, western Kazakhstan has a comparatively low respondent rate 8.3 % which may in a way mean less interested or fewer available sources for the alternative energy. Equally allowed but less represented is Central Kazakhstan claiming 17. 5%, and East Kazakhstan with 10% representation
The option that comes out on top of the poll is solar energy as 70 of the respondents designate it as the most available type of alternative energy. 8% of respondents. Hydro power is the second with 53. 3% of the population Using coal power, 20. 7% of respondents. No respondent reported they are using geothermal energy, possibly because the area of the country is not endowed with the resource, or has not invested in it. Additionally, 19. Finally, there are the respondents who reported that their region does not offer any sources of alternative energy, which implies a highly prospective field.
4. Economic Impact Perception
Respondents have varied views on the economic benefits of alternative energy:Respondents have varied views on the economic benefits of alternative energy: It’s noteworthy that 45% of the participants are convinced that the process will create economic benefits. 25.8% percent of the respondents believe that outsourcing will not pose a major impact to the economy. 22.5% say that it may have risks which may incur losses. 6.7% of surveyed people stated that they have difficulties with it. This spectrum of thinking can be caused by the tendencies to be optimistic in terms of economical contributions of alternative energy to Kazakhstan.
5. Initial Investment Assessment
Opinions on the justification of initial investments in alternative energy are diverse:
11.7% view high initial costs as justified in the long term. 30.8% feel the costs are high and not justifiable. 29.2% think the costs are sufficient. 18.3% consider the costs unreasonably low. 10% believe the costs are justifiably low. This spread indicates significant concern over the financial burden of transitioning to alternative energy compared to traditional sources.
6. Job Creation Potential
There is a generally positive view on job creation related to alternative energy: 28.3% completely agree that it can create new jobs. 40.8% partially agree. 18.3% disagree. 12.5% find it difficult to answer. This reflects a broadly favorable perspective on how alternative energy might contribute to employment.
7. Barriers to Development
The main barriers to the development of alternative energy in Kazakhstan are: Low awareness of the population (45%). Lack of technology and infrastructure (29.2%). High initial costs (19.2%). Political and legislative barriers (6.7%). Addressing the low awareness and infrastructure challenges could be crucial in advancing alternative energy in the country.
Looking to the future, respondents have diverse expectations for the economic impact of alternative energy: 20% anticipate a strong positive influence. 33.3% expect a weakly positive effect. 17.5% foresee a weakly unprofitable impact. 6.7% think it will be highly unprofitable. 12.5% believe it will have a minor impact.
Analysis of Survey Results on Alternative Energy in Kazakhstan
The survey on alternative energy in Kazakhstan offers a glimpse into how people across different regions and age groups perceive the future of energy in their country. Here’s a more personal take on the findings:
1. Who Took the Survey?
Most of the survey participants are young, with 35.8% between 18 and 27 years old. This suggests that younger people are really paying attention to the future of energy in Kazakhstan. It's worth noting that there weren’t any respondents over 60, so we might be missing some valuable insights from older generations who have seen the country’s energy landscape evolve over time.
2. Where Are They From?
A significant portion of respondents come from South Kazakhstan (35%) and Northern Kazakhstan (29.2%). This could mean that people in these areas are more aware of or interested in alternative energy. Meanwhile, only 8.3% of the respondents are from Western Kazakhstan, which might suggest that either alternative energy isn't as big of a topic there or it simply hasn't gained as much traction yet. Central and East Kazakhstan also have their voices represented, but to a lesser extent.
3. What Energy Sources Are Available?
Solar energy seems to be shining the brightest, with 70.8% of respondents reporting its availability in their regions. Hydro power is also fairly common, with 53.3% of people saying it’s an option where they live, and 36.7% have access to wind power. Geothermal energy, on the other hand, hasn’t made any headway—nobody reported its availability. Alarmingly, 19.2% of respondents said they have no alternative energy sources at all, highlighting a significant gap that needs to be addressed.
4. How Do People View the Economic Impact?
Opinions on whether alternative energy will benefit Kazakhstan’s economy are pretty mixed: 45% are optimistic, believing it will bring economic benefits; 25.8% think it won’t make much of a difference; 22.5% are worried it could actually lead to economic losses; 6.7% aren’t sure what to think. This range of opinions shows that while many are hopeful, there’s still a lot of uncertainty and concern about the economic implications.
5. What About the Costs?
When it comes to the initial costs of investing in alternative energy, people have different views: 11.7% think the high costs are worth it in the long run; 30.8% feel that these costs are too high and not justified; 29.2% believe the costs are about right; 18.3% actually think the costs are unreasonably low; 10% consider the costs justifiably low. This spread of opinions suggests that many are concerned about the financial burden of switching to alternative energy, especially when compared to traditional sources like coal, oil, and gas.
6. Can Alternative Energy Create Jobs?
The idea that alternative energy could lead to new job opportunities is generally well-received:
28.3% fully agree that it can create new jobs; 40.8% partially agree, seeing some potential; 18.3% don’t think it will make a difference in job creation; 12.5% are unsure; overall, there’s a positive outlook on the potential for job creation in the alternative energy sector, which could be a big plus for the economy.
7. What Are the Main Barriers?
The biggest challenge to developing alternative energy in Kazakhstan seems to be a lack of public awareness, with 45% of respondents citing this as a major issue. The next big hurdle is the lack of technology and infrastructure (29.2%), followed by high initial costs (19.2%). Political and legislative barriers are less of a concern, with only 6.7% seeing them as a major obstacle. This suggests that improving education and building the necessary infrastructure could make a big difference.
8. What Does the Future Hold?
Looking ahead, people have mixed expectations about how alternative energy will impact Kazakhstan’s economy:
20% are optimistic, expecting a strong positive influence; 33.3% think it will have a mildly positive effect; 17.5% worry it could have a weakly negative impact; 6.7% believe it could be highly unprofitable; 12.5% think it will only have a minor impact.
This mix of views shows that while many people see potential benefits, there’s also a fair amount of uncertainty about what the future holds.
Steps to Assess and Calculate the Economic Benefit or Loss:
1. Current Energy Profile and Costs:
Determine Kazakhstan’s current energy mix, including the proportion of energy generated from fossil fuels versus renewable sources.
Analyze the costs associated with current fossil fuel-based energy production, including fuel costs, operation and maintenance, and environmental costs.
2. Investment in Alternative Energy:
Estimate the capital investment required to transition to alternative energy sources such as wind, solar, hydro, and biomass.
Consider the costs of building new infrastructure, integrating renewable energy into the grid, and potential subsidies or incentives.
3. Cost of Renewable Energy:
Calculate the levelized cost of electricity (LCOE) for various renewable energy sources in Kazakhstan. The LCOE includes capital costs, operation and maintenance costs, and the cost of capital over the life of the energy plant.
Compare the LCOE of renewable energy sources with that of traditional fossil fuels.
4. Economic Benefits:
Cost Savings: Estimate the potential savings from reduced reliance on imported fossil fuels and the reduced environmental and health costs associated with lower emissions.
Job Creation: Analyze the potential for job creation in the renewable energy sector, including manufacturing, installation, and maintenance of renewable energy infrastructure.
Energy Security: Assess the impact on energy security and the stability of energy prices due to diversification of energy sources.
5. Environmental and Social Impact:
Quantify the reduction in greenhouse gas emissions and other pollutants as a result of switching to renewable energy.
Assess the long-term benefits related to public health and the environment, which might translate into economic benefits through reduced healthcare costs and improved quality of life.
6.Scenario Analysis
Conduct a scenario analysis comparing different levels of investment in renewable energy (e.g., low, medium, and high investment scenarios).
Calculate the net present value (NPV) and the internal rate of return (IRR) for these scenarios to assess the long-term economic impact.
To illustrate, let’s assume:
Current energy mix: 70% fossil fuels, 30% renewable energy.
Investment requirement: $10 billion over 10 years to increase renewable energy to 50% of the energy mix.
LCOE for renewable energy: $0.06 per kWh.
LCOE for fossil fuels: $0.08 per kWh.
Annual energy demand: 100 TWh.
Reduction in healthcare costs due to lower emissions: $1 billion annually.
Cost Comparison:
Current fossil fuel energy cost: 70 TWh * $0.08/kWh = $5.6 billion annually.
Future renewable energy cost: 50 TWh * $0.06/kWh = $3 billion annually.
Savings in energy production: $5.6 billion - $3 billion = $2.6 billion annually.
Total Benefits:
Annual savings from energy production: $2.6 billion.
Reduction in healthcare costs: $1 billion.
Total annual economic benefit: $2.6 billion + $1 billion = $3.6 billion.
Investment Analysis:
Total investment: $10 billion.
Payback period: $10 billion / $3.6 billion ≈ 2.8 years.
This simplified analysis suggests that Kazakhstan could experience significant economic benefits from increasing its investment in renewable energy. The actual benefits would depend on various factors such as the rate of technological advancements, global energy prices, and government policies.
DISCUSSION
The survey data on alternative energy in Kazakhstan provides a comprehensive look at the economic benefits and challenges associated with transitioning to renewable energy sources. The results highlight key factors such as demographic engagement, regional distribution, energy accessibility, and perceptions of economic impact, all of which play crucial roles in shaping the potential economic outcomes of adopting alternative energy.
A significant finding is the high level of engagement among younger demographics, with 35% of respondents between the ages of 20 and 30, and 8% between 18 and 27. This suggests that the younger population is actively participating in debates around renewable energy, which bodes well for the future. Their interest and involvement could drive demand for alternative energy solutions, leading to increased support for policies and investments in this sector. This demographic’s enthusiasm can be a catalyst for economic growth, as they are likely to advocate for and adopt renewable energy, contributing to a more sustainable energy market.
Regionally, the data shows that South Kazakhstan (35%) and North Kazakhstan (29.2%) have the highest number of respondents, indicating a greater interest in or access to alternative energy resources in these areas. In contrast, Western Kazakhstan, with only 8.3% of respondents, appears less engaged or has fewer resources available for alternative energy development. This disparity suggests that economic benefits from alternative energy might be concentrated in regions with higher engagement and better infrastructure. These regions could attract more investment and development, leading to regional economic growth driven by the renewable energy sector.
In terms of energy accessibility, solar energy emerges as the most available and preferred option, with 70% of respondents identifying it as the top alternative energy source. Hydropower follows with 53.3%, while coal remains in use by 20.7% of respondents. The absence of geothermal energy use may indicate either a lack of natural resources or insufficient investment in this area. The popularity and accessibility of solar energy suggest that it could be a primary focus for economic benefits, helping to reduce energy costs and reliance on fossil fuels. This shift could lead to substantial savings for both consumers and the economy at large.
The perception of economic impact is varied among respondents. While 45% believe that alternative energy will bring economic benefits, 25.8% think it will have little impact, and 22.5% foresee potential risks that could lead to losses. This spectrum of opinions reflects both optimism and caution regarding the economic contributions of alternative energy to Kazakhstan. The significant portion of optimistic respondents suggests a strong belief in the potential for positive economic outcomes, which could drive further investment and policy support in the renewable energy sector.
However, opinions on the justification of initial investments in alternative energy are mixed. Only 11.7% of respondents view high initial costs as justified in the long term, while 30.8% feel these costs are too high and unjustifiable. This concern over financial burdens presents a potential barrier to widespread adoption. Addressing these concerns through financial incentives, subsidies, or technological advancements could make alternative energy more financially viable and unlock significant economic benefits.
The potential for job creation in the renewable energy sector is another positive economic aspect, with 28.3% of respondents completely agreeing and 40.8% partially agreeing that alternative energy can create new jobs. This positive outlook on employment opportunities suggests that the transition to renewable energy could stimulate local economies, particularly in regions where traditional energy sources are being phased out.
Despite the positive aspects, several barriers to the development of alternative energy in Kazakhstan remain. The survey identifies low awareness among the population (45%), lack of technology and infrastructure (29.2%), and high initial costs (19.2%) as the main challenges. Overcoming these barriers, particularly by increasing public awareness and developing necessary infrastructure, is crucial for advancing the alternative energy sector. Doing so could lead to significant economic benefits, including job creation, reduced energy costs, and increased energy security.
Looking to the future, respondents have mixed expectations for the economic impact of alternative energy. While 20% anticipate a strong positive influence, 33.3% expect only a weakly positive effect, and smaller percentages foresee negative impacts. This uncertainty highlights the need for careful management and strategic planning to ensure that the transition to alternative energy yields the maximum economic benefits.
CONCLUSION
In conclusion, the economic benefits of using alternative energy sources in Kazakhstan are significant and multifaceted, with the potential to create substantial long-term advantages for the country. As global demand for renewable energy continues to rise due to environmental, economic, and social factors, Kazakhstan stands at a pivotal moment to capitalize on this shift. The growing awareness of climate change, the depletion of fossil fuel reserves, and the increasing efficiency and affordability of alternative energy technologies all point toward the urgent need for Kazakhstan to transition to cleaner, more sustainable energy solutions.
The environmental benefits of renewable energy are clear. Fossil fuels such as coal, oil, and gas are finite resources that contribute heavily to greenhouse gas emissions and pollution, both of which exacerbate climate change and environmental degradation. In contrast, alternative energy sources like solar and wind power produce far fewer carbon emissions and have a much smaller impact on ecosystems. These sources of energy are not only more sustainable but also more abundant and reliable in the long term, positioning Kazakhstan to reduce its reliance on traditional energy sources and mitigate the environmental costs associated with fossil fuel consumption.
From an economic perspective, the shift toward renewable energy presents numerous opportunities for Kazakhstan. As evidenced by successful projects like Bakhtiyar Yusupov's solar-powered greenhouse and the medium-sized sugar refinery in Baskuduk, renewable energy has the potential to create new revenue streams and improve the livelihoods of local businesses and communities. By reducing reliance on imported energy carriers and fossil fuels, Kazakhstan can improve its energy security and stabilize its economy in the face of fluctuating oil and gas prices. Moreover, renewable energy projects can generate significant job creation, particularly in regions with high interest and accessibility to these technologies. This not only supports economic growth but also contributes to social development by engaging the younger population and building a workforce skilled in green technologies.
Despite these benefits, Kazakhstan faces several challenges in its transition to renewable energy. The high initial costs of installation and maintenance, combined with infrastructure limitations, represent significant financial hurdles. Renewable energy production can be unstable, and additional investments are required to develop the grids and energy storage systems necessary to support a fully integrated renewable energy infrastructure. The economic risks associated with these investments are further complicated by Kazakhstan's reliance on more developed countries like China and Russia for technological advancements and subsidies. Corruption and inefficient use of budgets also pose barriers to achieving economic sustainability and long-term competitiveness in the renewable energy sector.
Nevertheless, these challenges are not insurmountable. By addressing financial and infrastructural barriers and strategically managing the transition, Kazakhstan can unlock the full economic potential of alternative energy sources. This will require a coordinated effort to leverage job creation opportunities, foster international partnerships, and ensure that renewable energy projects are implemented in regions where they are most viable. Engaging the younger population and promoting education and training in renewable energy technologies will be crucial to building a skilled workforce capable of driving the country’s transition to a sustainable energy system.
