Domestic challenges for Kazakhstan´s energy transformation were the topic of the first session. Dr Joachim Lang provided a statement applying the German experiences on possible approaches in Central Asia.

The second session of the workshop dealt with the cross-border integration of energy markets. Dr Peter Hefele, director of KAS RECAP, chaired the session and provided his experiences from the European case.

Every session was rounded up by an intense discussion among the participants. The workshop aimed on elaborating recommendations for the Kazakh energy politics.

Prof Anatole Boute approached the question of how to transform the energy sector from a legal side. He emphasised that a stable legal situation with favourable regulatory conditions is crucial to attract investors.

Almaty Tech Garden is the largest innovation cluster in Kazakhstan, which receives funds for R&D from the local oil and gas industry. Research is currently done in the fields of Fintech, energy efficiency, advanced nano and chemical applications and sustainable urbanisation. It supports start-up companies and serves as a link for international partners.

In his welcoming remarks, H.E. Jörn Rosenberg, Consul General of Germany, outlined the basic principles of the German “Energiewende”, the most comprehensive and ambitious project of energy transition globally.

Professor Pflüger, director of EUCERS, introduced into the topic of the first session from a global perspective and pointed to the “greening of economy”, the impacts of the one-belt, one-road initiative (OBOR) on Central Asia, and the digital revolution as main challenges for the Kazakh economic reform.

The newly appointed Director General of the Federation of the German industry (BDI), Joachim Lang, outlined main success factors for energy transition policies, drawn from the example of the German and European “Energiewende”. He emphasised the opening of energy markets, the implementation of support systems (i.e., carbon pricing mechanisms), the complexity of this transformation, affecting different policy fields, and the need for coordinated efforts.

Experts from Kazakhstan introduced into the country´s strategy of economic and energy transformation. Primary fields of reform are the enhancement of regulatory frameworks, the coordination of traditional and new renewable power producers, pricing models and the integration of regional energy markets (i.e., with Russia and China).

In the discussion, the challenges and opportunities of OBOR for the domestic development have been scrutinized as well as lessons from and contribution of Germany for the future development of Kazakhstan.

Against the background of the European Union`s Energy Union as the most advanced example of a regional energy market integration, Kazakh and international researchers debated the future of an integrated Central Asian energy and resource market. Arman Kashinbekov, CEO of the Association of Renewable Energy of Kazakhstan, introduced into the current role of RE in the domestic energy mix. He expressed his hopes that EXPO 2017 will trigger the deployment of RE, but also pointed out, that new regulations and financial support have to be set up to help further growth of this industry.

Anatole Boute, professor of energy law at Chinese University of Hongkong (CUHK), lined out requirements for domestic and international regulations in the field of energy/resource law. Stable expectations for investors (i.e., in property rights and investment rules) are crucial for the further progress of energy transformation.

The policy of the European Union towards this region was critically reviewed by Frank Umbach, Research Director at EUCERS. Despite being the largest donor of development aid to the region, the EU often remains a “donor without influence” – in stark contrast to Russia and China, which gained massive influence in the area and consider it as a centre piece in their resource strategies. Kazakhstan plays an important role, and Europe has to strengthen its links with the country.

All participants agreed in improving the regulatory framework, attracting international public and private investment, opening markets and creating common platforms, in particular for small and medium enterprises and start-ups.