Barriers to renewable energy transition in a developing oil-exporting country: The case of Kazakhstan

Abstract

This study aims to investigate the barriers hindering the transition to renewable energy sources (RES) in Kazakhstan, a developing oil-exporting country facing rising energy demand, environmental degradation, and increasing pressure to meet international climate commitments. The research combines a review of relevant literature with insights drawn from 20 structured expert interviews, applying the analytical framework developed by J. P. Painuly. The research then provides a comprehensive analysis of the barriers to RES adoption in Kazakhstan and their implications for policy and investment. This analysis is structured around seven key barrier categories: (1) market failures and imperfections; (2) market distortions; (3) economic and financial; (4) institutional; (5) technical; (6) social, cultural, and environmental and (7) other barriers. The findings indicate that while Kazakhstan possesses significant renewable energy potential, its realization is obstructed by several challenges, which include among others high risks associated with renewable energy projects, the lack of competitiveness of renewables due to government subsidies for conventional energy, barriers faced by small producers and prosumers, the need for regulatory improvements and increasing public awareness. Despite some positive policy developments, such as revised power purchase agreements, substantial reforms are still needed to improve market access, mitigate investment risks, and enhance institutional capacity. This paper contributes to the broader discourse on energy transitions in oil-dependent economies and offers policy-relevant insights to support the country’s shift toward a sustainable and diversified energy future.