English (UK)
Strategic Support for Domestic Manufacturers of Energy Equipment (DME)
The development of Kazakhstan’s renewable energy sector requires not only the expansion of generation capacity, but also the creation of a robust industrial base. Today, domestic manufacturers of energy equipment (DME) are becoming a strategic asset, determining national energy sovereignty and competitiveness in foreign markets.
The problem: Equal conditions are not always fair
The current support system for RES projects often does not take into account the origin of equipment. As a result, companies using imported technologies receive the same tax, customs, and investment preferences as those using Kazakh-made equipment. This discourages investor interest in localization and hinders the development of domestic value chains.
Proposed support measures for DME (by instrument type):
Financial and tax instruments
| Measure | For DME | For imports |
|---|---|---|
| Corporate and property tax benefits | Keep | Cancel |
| Interest rate subsidies on loans | Keep | Cancel |
| Customs benefits and VAT exemptions on import | - | Cancel |
Infrastructure and electricity market
| Measure | For DME | For imports |
|---|---|---|
| Fines for imbalances until 2029 | Cancel | Apply |
| ESS requirements for RES < 5 MW | Cancel | Apply |
Why DME support is necessary:
Building a sustainable industrial base
Kazakhstan already has factories assembling PV modules, and plants for wind turbines and energy storage systems are being built. Without DME support, these enterprises will not survive under unfair competition from imports.
Supporting the green economy
Local manufacturing reduces carbon footprint, creates jobs, increases technological literacy, and forms a critical mass of engineers and technicians.
Integration of science and industry
The experience of TGS and other players shows the possibility of uniting universities, research institutes, and businesses to commercialize high-tech solutions — from silicon processing to PV module production.
Conclusion:
Supporting DME is not protectionism, but a strategic necessity. Countries that succeeded in renewable energy — from China to the US — began with strong state support for domestic manufacturers. Kazakhstan must use tax and financial policy tools to form a full cycle of “science – technology – production – sales” within the country.