Kazakhstan Targets 2027 Start for $15 Billion Balkhash Nuclear Plant as Licensing Work Continues

Construction near Ulken depends on permits

Kazakhstan could begin building its first nuclear power station in 2027 near Ulken, a settlement on the shore of Lake Balkhash in Almaty Region, according to Almasadam Satkaliyev, chairman of the country's Agency for Atomic Energy. The proposed station would have two reactors with a combined capacity of 2,400 megawatts, or 2.4 gigawatts, and would be developed by a consortium led by Russia's state nuclear corporation Rosatom.

Satkaliyev outlined the target at the World Atomic Week 2026 forum in Turkey, saying construction could begin once the necessary licences are obtained and Kazakhstan's legal requirements are met. Kazakhstan and Russia have signed an intergovernmental agreement and an engineering, procurement and construction contract, while negotiations over the contract's supporting annexes continue.

The project carries an estimated construction cost of about $15 billion, although a broader estimate puts spending at $16.4 billion when security systems and social infrastructure are included. The proposed financing would make a Russian loan the main source of funding, with Kazakhstan contributing the remainder.

For Kazakhstan, the immediate task is to turn signed agreements and geological surveys into an authorised building project. Electricity production lies further ahead: the government has described a 2035 target, while other project schedules place the first reactor's opening in 2034 and the station's staged commissioning in 2035 and 2036.

Preparations for a second plant, Moiynkum, are also advancing in the same district. Its timetable is less developed, with negotiations, geological investigations and government documents still being worked on.

What the construction contract covers

Kazakhstan Nuclear Power Plants and Atomstroyexport, a Rosatom subsidiary, signed the engineering, procurement and construction contract on September 3, 2026, during the Eastern Economic Forum in Vladivostok. Satkaliyev and Rosatom Director General Alexei Likhachev attended the signing.

An engineering, procurement and construction contract, usually shortened to EPC, assigns responsibility for designing a facility, purchasing its equipment and building it. For Balkhash, Rosatom's responsibilities extend through commissioning, when equipment is tested and brought into service, and the handover of the completed station to the customer.

The agreement follows the intergovernmental accord dated May 28, 2026. Kazakhstan's atomic energy agency said the parties would begin the required procedures, including obtaining the necessary agreement from Kazakhstan's government. Work on the contract annexes adds another task before construction can proceed under the country's rules.

Likhachev, who leads Rosatom, said after the signing that the company would complete the design and assemble suppliers from several countries:

Rosatom will soon complete design work and create an international consortium of equipment suppliers.

Rosatom was selected in 2025 to lead the international consortium. Likhachev has said Kazakhstan discussed participation with vendors from China, France and South Korea, some of which already work on Rosatom projects elsewhere. Kazakhstan's government will set the main project parameters, and the construction timetable also depends on the customer.

Surveys come before reactor construction

Engineering investigations near Ulken began in August 2025. More than 60 boreholes, some reaching depths of 120 metres, have been drilled to collect samples for analysis and help select the precise location of the reactor units.

These investigations give engineers information about the ground beneath the proposed station. Soil and rock conditions affect decisions about foundations and the detailed design of structures. Survey work is scheduled to finish in 2027, followed by preparation of documents for the permit application process.

Rosatom also expects to begin establishing the construction base in 2027 while preparing technical documentation for a licence. A construction base provides the facilities and organisation needed to support the larger building operation. The sequence means several kinds of preparation may proceed alongside one another before work on the main nuclear structures advances.

The project's milestones show how Kazakhstan has moved from public approval toward construction planning:

• October 6, 2024: Voters supported building a nuclear power plant in a national referendum.
• 2025: Rosatom was selected to lead the consortium, and a roadmap covered two VVER-1200 reactor units.
• August 2025: Exploratory drilling and soil sampling began near Ulken.
• May 28, 2026: Kazakhstan and Russia signed the intergovernmental agreement.
• September 3, 2026: Kazakhstan Nuclear Power Plants and Atomstroyexport signed the EPC contract.
• 2027: Construction is targeted to begin, subject to licences and legal requirements.

How much will Kazakhstan pay?

The headline construction estimate is about $15 billion. A more detailed preliminary breakdown assigns $14.4 billion to the two generating units and another $2 billion to physical security systems and social infrastructure, bringing that estimate to $16.4 billion.

Physical security covers protection of the facility, while social infrastructure refers to facilities and services supporting the people involved in the project. Separating these costs helps explain why the price of the reactors and generating equipment is lower than the wider project budget.

Kazakhstan's authorities have described a financing structure in which 85% of the $16.4 billion comes from a Russian loan and 15% from Kazakhstan. Applied to that estimate, the shares would amount to approximately $13.94 billion in borrowing and $2.46 billion in Kazakhstan's own funding.

Russian President Vladimir Putin has said the loan would be repaid with interest. The interest rate and repayment period have not been disclosed in the announcements described so far. Those terms will determine how much Kazakhstan ultimately pays beyond the amount borrowed.

The proposed arrangement connects the construction decision to a long financial commitment. Kazakhstan would be buying a generating station while also taking on debt that must be serviced over time. The final contract details and financing terms therefore matter alongside the construction price.

When would the reactors supply electricity?

Balkhash is planned around two VVER-1200 pressurised water reactors, each with a capacity of about 1,200 megawatts. Together, they would provide 2,400 megawatts. Capacity measures how much power a station can deliver at a particular moment; the electricity it produces over a year also depends on how long it operates.

A pressurised water reactor uses water under high pressure to carry heat away from the reactor. That heat is transferred to another water circuit to make steam, which turns turbines connected to electricity generators. Rosatom uses the VVER-1200 design in projects in countries including Belarus, China, Turkey, Bangladesh, Egypt and Hungary.

Kazakhstan's stated target places the plant's entry into operation in 2035. An earlier project schedule targeted the first unit for 2034, while the atomic energy agency has described staged commissioning in 2035 and 2036. Likhachev has used the broader description of the mid-2030s, with an interval of eight to ten months between the two units.

Staged commissioning means the plant would add power in steps. The first reactor could begin generating while testing and preparations continued on the second. Kazakhstan would therefore receive the station's full planned capacity only after both units entered service.

Nuclear power arrives after the immediate electricity deadline

Kazakhstan generated 123.1 billion kilowatt-hours of electricity in 2025 and consumed 124.6 billion, according to figures attributed to national grid operator KEGOC in October's nuclear construction proposal. Net imports covered the difference of about 1.5 billion kilowatt-hours, equivalent to roughly 1.2% of consumption.

President Kassym-Jomart Tokayev's October 28, 2026 address paired the nuclear construction push with a nearer goal: achieving a sustained electricity surplus by 2029. Balkhash's projected opening comes several years later, so other electricity projects will have to supply the extra generation needed for that earlier deadline.

Kazakhstan's atomic energy agency links growing electricity demand to industry, infrastructure, digitalisation and artificial intelligence. It presents nuclear generation as a source of steady electricity for the coming decades. The government has set a target for nuclear power to supply 5% of national electricity generation by 2035.

Kazakhstan is already the world's leading uranium producer, but it currently has no operating commercial nuclear power station. Its nuclear experience includes three operating research reactors and the BN-350 reactor near Aktau, which operated for 26 years before closing in 1999.

The new programme would move the country from supplying reactor fuel material and operating research facilities to running large commercial reactors. That requires operating staff, maintenance capabilities and institutions able to supervise a power station throughout its working life.

Moiynkum is on a different timetable

China National Nuclear Corporation, known as CNNC, is lined up to build two additional stations of similar capacity. The proposed second station, Moiynkum, would also be in Zhambyl District of Almaty Region, near the site chosen for Balkhash.

Satkaliyev has said the second project remains at the negotiation stage. Engineering and geological investigations are under way, and their results will help determine the next steps. The relevant intergovernmental documents are being prepared, with a firm implementation timetable still to be set.

The position has developed since Likhachev's May comments, when he said Kazakhstan had not yet officially announced the configuration or location of its second station. Later statements identified Zhambyl District for Moiynkum, while leaving detailed agreements and scheduling work to be completed.

Two stations of 2,400 megawatts each would provide a combined planned capacity of 4,800 megawatts. Building all three proposed stations at that size would bring the total to 7,200 megawatts. Each project still has its own sequence of negotiations, studies, financing and approvals.

Tokayev has called for a comprehensive cooperation agreement to accelerate Moiynkum's preparation. His proposal places the first two stations at different stages: Balkhash is moving through contract procedures and licensing preparations, while Moiynkum still needs the agreements required to advance its development.

Local work and public concerns

Kazakhstan's atomic energy agency says participation by domestic businesses and specialists will receive particular attention during construction. Its stated priorities include using Kazakh goods and services, involving local companies and developing the skills needed for a national nuclear industry.

The agency expects the project to create opportunities for industrial production, new technologies and professional training. The international supplier consortium and the work assigned to Kazakh companies will help determine how those aims translate into contracts and employment.

Public support for building a nuclear station was recorded in the 2024 referendum, when more than 70% of the 7.8 million participating voters backed the proposal. Opposition also exists, with critics questioning the project's economics, environmental risks and dependence on Russian technology.

The financing plan, supplier arrangements and licensing process address concrete parts of that debate. Loan conditions determine borrowing costs, contracts determine responsibilities, and the permit process governs whether construction can proceed. For Ulken and the surrounding district, those decisions will shape both a major building operation and the station intended to follow it.

Key Points

• Kazakhstan targets a 2027 construction start for Balkhash, subject to licences and compliance with national law.
• The planned station near Ulken would use two VVER-1200 reactors with a combined capacity of 2,400 megawatts.
• The EPC contract was signed on September 3, 2026; negotiations over supporting annexes continue.
• A broader $16.4 billion estimate includes security and social infrastructure, with 85% proposed to come from a Russian loan.
• Published schedules place the first unit in 2034 or later and staged commissioning around 2035 and 2036.
• Moiynkum, the proposed second station, remains in negotiations and geological preparation without a firm construction timetable.