Competitiveness of Kazakhstan's Renewable Energy Industry and its Implication for Central Asian Cooperation

Abstract

Kazakhstan has enormous renewable energy potential, particularly from wind, solar and small hydropower plants. But renewable energy share accounts for less than one percent of all power installations. It is important for Kazakhstan to develop renewable energy sector as the energy demand is growing and the green energy is one of the ways of meeting the energy need of the country. Through the Michael Porters model Determinants of National Competitive Advantage this research examines competitiveness of renewable energy industry of Kazakhstan. Moreover, basics from other Central Asian countries renewable energy frameworks and industries were considered in order to extract recommendations and identify appropriate strategies for promotion of renewable energy in Kazakhstan. The SWOT analysis was applied to examine strengths, weaknesses, opportunities, and threats of Central Asian cooperation in renewable energy field in the context of advancing renewable energy policies and technologies and expanding domestic renewable energy installations through this cooperation. Based on SWOT analysis, the strategies were developed using the TOWS Matrix. The analysis of Michael Porters factors indicated the possibility of creating in Kazakhstan the world class Renewable Energy industry. However, challenges lie in the path of that prosperity continuing. Kazakhstans future performance is constrained by a dependence on natural resources, a weak manufacturing sector and lack of specialists. Some policy implications were suggested, such as:1) the establishment of a policy, facilitating competition between renewable energy and fossil fuels

2) increase of private and public sector financial support for the commercialization and deployment of Kazakhstan renewable energy

3) enhancing the ability of the Kazakhstan manufacturing sector to support the renewable energy industry

4) training of specialists. SWOT-analysis of cooperation between Kazakhstan and other Central Asian countries demonstrated the significant advantages of such cooperation for renewable energy development. Through the SWOT analysis, this study identifies a capacity for additional renewable energy deployment and development in Kazakhstan and highlights the necessity of increased cooperation between Kazakhstan and other Central Asian countries in order to strengthen and improve domestic and regional renewable energy sectors