The Impact of Institutional Factors on the Development of Renewable Energy in Kazakhstan: An Econometric Analysis

Kazakhstan's energy system faces a serious challenge due to its high dependence on hydrocarbons. It's worth noting that the country's energy system was built during the former Soviet Union. The country still generates over 70% of its electricity from coal and gas. New energy facilities and capacities are being commissioned very slowly. Consequently, the country's energy infrastructure is extremely deteriorated. This, in turn, translates into significant transmission losses and a high accident rate. The growing electricity deficit is the main obstacle to ensuring high rates of economic growth and sustainable demand. Over the past 10 years, the country has placed a strong emphasis on the construction and commissioning of renewable energy facilities, which will account for 7% of total electricity generation by 2025. Furthermore, the rapid rise in gas prices over the past four years has prioritized an active transition to renewable energy sources to achieve national energy security. Therefore, the aim of this article is to conduct an econometric assessment of the contribution of institutional factors and provide recommendations for stimulating the promotion of renewable energy sources in Kazakhstan.