07 Jan 2022, 11:54
Kerstine Appunn

Kazakhstan crisis causing concern among German energy partners


The escalation of violence in Kazakhstan is causing concern among German businesses who were planning to tap into the country’s rich potential for developing climate-friendly technologies, renewable energies and hydrogen, public broadcaster ARD reports. Kazakhstan also is Germany’s fourth largest oil supplier and its most important trading partner in Central Asia. "A timely calming of the situation is indispensable to avert further bloodshed, destabilisation of the country, and therefore damage to Kazakhstan as a location for business and investment," Oliver Hermes, Chairman of the German Eastern Business Association said, adding that the country’s potential for the expansion of renewable energies could play an important role in Germany’s energy transition. German investor Svevind Energy is planning several large-scale solar plants and wind farms with a total capacity of up to 45 gigawatts in western and central Kazakhstan. The electricity is to be used primarily for the production of green hydrogen, which can be exported to Germany, the article says.

Germany relies on energy imports to a very high degree and sources the vast majority of its fossil fuel consumption from abroad. The country will have to rely on international partners also if it manages to fully decarbonise its energy system, as it lacks sufficient space and production capacity to produce enough green hydrogen with renewable power installations for its consumption domestically.

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Kerstine Appunn

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