English (UK)
The development of high-tech exports and solutions in the field of renewable energy (RE) from Kazakhstan is one of the key elements for diversifying the economy and strengthening regional leadership. However, in practice, there is no integrated support mechanism for such projects, especially at the financing and insurance stages.
Key Institutional Barriers
- Fragmentation and Lack of Coordination Between DBK and ECA
- Development Bank of Kazakhstan (DBK) does not offer specialized instruments to support export-investment EPC projects in the RE sector.
- Export Credit Agency of Kazakhstan (ECA), which performs export insurance functions, applies overly strict requirements for documentation not adapted to the specifics of foreign RE projects.
- Institutional development is not synchronized between DBK and ECA. There is no "single window" or coordinated project support format.
- Inadequate Adaptation of Insurance Products
- For political risk insurance (expropriation, capital transfer, armed conflict), ECA requires documentation comparable to syndicated loans—ranging from 25 to 30 documents.
- Standard insurance products for basic investment risks have not been developed, nor are simplified procedures provided for claims settlement.
- Inability to Mobilize Full-Cycle Financing for Export EPC Projects
- There is no mechanism for financing the entire EPC export contract cycle, including R&D, engineering, installation, and service.
- Long-term integrated financing mechanisms are not supported. RE projects often involve multiple local manufacturers and contractors, requiring flexible instruments.
Why This Slows Down RE Exports
- Kazakhstan loses ground in emerging RE markets to Chinese, Vietnamese, and Turkish companies that benefit from ECA support and subsidies.
- Equipment and component localization potential is not converted into export contracts.
- Young, high-tech companies are limited by the domestic market and cannot scale up due to lack of access to long-term capital.
Proposed Export Mechanism Reforms
| Direction | Proposal |
|---|---|
| Financial Architecture | Create export product at DBK linked to EPC and green finance |
| Institutional Integration | Launch a "single window" between DBK and ECA |
| Reduce Bureaucracy | Reduce list of documents for country risk insurance to 10–15 |
| Export Consortium | Legal framework for export alliances (OEM + engineering + investor) |
Conclusion
Without reform and adaptation, Kazakhstan risks remaining a raw material supplier rather than an exporter of ready-made RE solutions. To enter global markets, institutional capacity must match technological readiness through better coordination of export tools.