Analysis of the Impact of Baiterek National Managing Holding JSC’s Policy on the Renewable Energy Sector

In recent years, the activities of Baiterek National Managing Holding JSC (the Holding) have demonstrated a number of practices that contradict both the declared state priorities for the development of a “green” economy and the objectives of stimulating domestic production, science, and technology.

For example, in 2021–2022, there were precedents in which Development Bank of Kazakhstan JSC provided loans of up to 38 billion tenge, purportedly to support microbusinesses, for a single (!) project — without requirements for the use of products from domestic manufacturers (DMPs) but with subsidized interest rates from Damu Entrepreneurship Development Fund JSC (source). Such actions:

• distort the principles of fair competition and access to financing for SMEs;

• contradict the logic of current state industrialization support programs;

• create conditions for strengthening imports to the detriment of the development of local production, scientific research, and technology.

Of particular concern is the fact that in 2025, the Holding effectively removed the renewable energy sector (RES) from the list of priority areas eligible for preferential financing programs. This decision:

• reduces the investment attractiveness of the renewable energy sector;

• undermines trust in the state’s decarbonization policy;

• promotes increased imports and the displacement of Kazakhstan’s industry from supply chains in renewable energy projects.

Such a “support” model fails to generate a multiplier effect in the economy and does not contribute to the development of domestic high-tech industries, scientific research, or workforce training in the renewable energy field. As a result, instead of stimulating structural transformation of the economy and increasing tax revenues, the Holding's actions perpetuate dependence on imports.

Recommendations:

1. Conduct a comprehensive audit of the Holding’s implementation of renewable energy financing programs over the five-year period from 2020 to 2024, with preliminary approval of the Terms of Reference through the National Chamber of Entrepreneurs “Atameken.”

2. Reinstate the renewable energy sector as a priority area, and formalize this status in the regulatory acts governing the work of development institutions.

3. Introduce mandatory requirements for the use of DMP products when granting preferential financing.

4. Develop and approve a long-term strategy for the Holding to support sustainable energy and climate-neutral technologies.