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Add to Preferred SourcesThe European Bank for Reconstruction and Development (EBRD) is contributing to Kazakhstan’s grid modernization plans by supporting a long-term investment program of Alatau Zharyk Company (AZhC), a regional electricity distribution company supplying power to approximately four million people and around 50,000 commercial consumers in Almaty city and the region, according to a press release issued on 07 Sep 2026. The EBRD’s long-term loan of up to KZT 102 billion (€194 million equivalent) will help AZhC upgrade its infrastructure, procure smart meters, and improve efficiency. AZhC is a fully owned subsidiary of Kazakhstan’s largest diversified energy holding company, Samruk Energy. The financing will support the procurement of automated metering and telemechanic equipment. It will also fund upgrades to low- and medium-voltage electricity transmission and distribution infrastructure.
The operation is the latest EBRD-supported project under Kazakhstan’s National Project for the Modernization of Energy and Utility Sectors (MEKS). MEKS is a government-led program designed to modernize networks and facilities for heat, electricity, water supply, and sewerage. Its aim is to ensure reliable, high-quality services for residents and sustainable economic development. By supporting MEKS, the EBRD is helping to address critical bottlenecks in Kazakhstan’s energy grid. That grid has more than 24 GW of installed generation capacity and stretches for more than 470,000 sq. km, making it one of the world’s largest.
The project will support further digitalization of AZhC through the installation of smart meters at substations and the implementation of pilot smart grid technologies. It will also help to strengthen AZhC’s cybersecurity and contribute to corresponding efforts at the Samruk-Energy level. The modernization is expected to help deliver annual electricity savings of approximately 22 GWh. It is also expected to reduce annual CO2 emissions by around 12,000 tonnes. The initiative will additionally help to encourage further renewable energy growth in the Almaty region.
The project is aligned with a five-year enhanced partnership framework agreement between Kazakhstan and the EBRD. Under this framework, the project will support the development of Alatau city through the reconstruction of the Zhetygen electricity substation and an associated 110 kV transmission line. This work is intended to help secure reliable electricity supply for the flagship smart city development initiative. The financing package brings together infrastructure upgrades, digital solutions, and cybersecurity measures. Together, these components target both operational efficiency and long-term reliability of the network.
The EBRD has invested almost US$ 13.6 billion (€11.7 billion) in Kazakhstan to date through 358 projects. This makes the country the largest and longest-running recipient of EBRD investment in Central Asia. The current loan reinforces this record of engagement in the country. It also confirms the EBRD’s continued support for the modernization of Kazakhstan’s energy sector. The project stands as another step in advancing the country’s grid infrastructure and service delivery.