Upcoming NPP to generate up to 20% of Kazakhstan’s electricity
Kazakhstan’s upcoming nuclear power plant (NPP) is set to be a key component of the country’s long-term energy strategy, supplying up to 20% of the national electricity demand and operating for up to 60 years, with the potential for two 20-year extensions, according to Almassadam Satkaliyev, the Chairman of Kazakhstan’s Nuclear Energy Agency, Qazinform News Agency reports.
The NPP is expected to generate approximately 19.5 billion kilowatt-hours of electricity annually, accounting for around one-fifth of Kazakhstan’s current electricity consumption. Most of the power will be supplied to the domestic market, though participation in cross-border electricity flows within the region’s integrated power system is also under consideration.
According to Satkaliyev, the project’s economic viability and financial structure are key factors in determining its successful implementation.
“Current technologies allow modern plants to operate for 60 years, with the possibility of extending their service life by 20 years twice. In other words, we are talking about a century-long period of the plant’s operation. Issues of cost recovery are critical. The financial model provides for a return on investment during the operational period and for loan servicing. The project is expected to generate the necessary profit margin,” he said.
He noted that the final cost conditions for electricity and the investment payback period will be determined after the design phase and adjustments to the project’s financial model are made.
As an example, he cited international experience with large-scale energy projects, where electricity prices fluctuate throughout the plant’s construction and commissioning process.
According to him, average electricity prices at the start of construction were around 5 cents per kilowatt-hour, despite initial estimates of 12.5 cents. By the time the projects were completed, prices had risen to about 15 cents per kilowatt-hour, yet electricity remained competitive in the market.
Satkaliyev also emphasized that Kazakhstan operates within a unified regional power system with neighboring countries and is part of the Central Asian energy ring, enabling cross-border electricity exchanges and mutual reserve capacity arrangements.
Earlier, Qazinform News Agency reported that Kazakhstani companies would participate in the construction of the Balkhash NPP.
