Despite significant investments in modernizing energy infrastructure, the industrial zones in Kazakhstan continue to grapple with entrenched economic challenges. Upgraded power plants have improved electricity reliability and reduced emissions, but they have done little to reverse the wave of factory closures, job losses, and population decline that have plagued the region for decades. Experts point to a complex web of factors beyond energy capacity-including outdated industrial design, lack of diversification, and insufficient incentives for private investment-that dampen hopes for a quick turnaround.

Key obstacles contributing to sustained stagnation include:

  • Heavy reliance on aging Soviet-era industrial complexes that are ill-equipped for…