With rising utility rates and a deteriorating housing stock, Kazakhstan is increasingly faced with the need to shift from incremental repairs to systemic solutions. The building sector in Kazakhstan is growing steadily: it already consumes 47% of all energy, of which 34% is accounted for by residential buildings. The “Strategy for Achieving Carbon Neutrality in the Republic of Kazakhstan by 2060,” adopted in 2023, places particular emphasis on modernizing the building stock and improving its energy efficiency.

The national program “Modernization of the Energy and Utilities Sectors” for 2025–2029 identified the problem and set ambitious goals: to modernize at least 200 natural monopolies and at least 30 cogeneration plants, reduce accidents by 20%, and bring average deterioration to ~40%. A total of 13.588 trillion tenge has been allocated for this, including 6.208 trillion for energy, 6.778 trillion for the utilities sector, and 602 billion for automation and equipment with measuring and control devices; interest subsidies have also been provided for. This is an unprecedented infrastructure project in terms of its scale.

The program focuses specifically on energy generation networks and facilities. It does not include any direct tasks related to the thermal modernization of buildings or residential houses. This is something to keep in mind. Building new and upgrading old cogeneration plants while renewing the deteriorated grids will boost energy production but also increase transmission losses. By failing to insulate our buildings meanwhile, we’ll simply keep heating the street.

The most problematic part in the housing sector are multi-family homes (MFH) (97% privatized), as decisions on building modernization are made by a majority vote of apartment owners. Reaching a consensus on modernization is a complex process, especially given the varying financial capabilities of residents.

It is worth noting that since 2010, Kazakhstan has had state programs to support apartment owners in MFH renovating their buildings. However, these programs do not fully cover the costs of comprehensive building modernization, including energy-saving measures.

Comprehensive energy-efficient modernization of MFH (Multi-Family Houses) is not just a replacement of individual elements but requires a new approach. Unlike traditional overhauls, this format includes technical re-equipment, reduction of energy consumption, increased comfort, and extended service life of buildings.

The pilot project for comprehensive energy-efficient modernization of MFH buildings in Kokshetau, funded by the German Society for International Cooperation (GIZ) program FELICITY II, set itself a broader goal to establish a sustainable model of interaction between residents, management companies, and city authorities and to identify barriers to energy modernization. The project was based on a strategy of continuous and open dialogue with all stakeholders, especially the residents of the pilot building. The Housing Initiative for Eastern Europe (IWO) was responsible for the dialogue with the apartment owners, the management company, and the Kokshetau City Administration.

In the documents listed below you can learn about the pilot project, the organization of dialogue with residents and other stakeholders, and the main conclusions of the project:

• Information bulletin “Comprehensive energy-efficient modernization: pilot project in Kokshetau” ─ detailed description of activities in Kokshetau and information material provided to apartment owners and residents of the pilot building

• Brochure “Proposal for Energy Modernization of MFH” ─ explains energy-saving and non-energy-saving construction measures; describes the actual condition of building components before and after modernization

• Survey of residents’ opinions on the energy modernization of the pilot building ─ subject of the survey: 1) satisfaction with apartment temperature; 2) attitude towards energy conservation in the building; 3) housing maintenance costs: heat, hot water, electricity; 4) motivation of apartment owners (willingness to invest in energy-saving modernization)

• Brochure “Information material on the comprehensive energy-efficient modernization of the MFH” ─ information is provided to prepare for the residents’ meeting, namely: notification of the meeting, meeting agenda, description of the main activities and project cost of comprehensive energy-efficient modernization, financing scheme, as well as a description of the stages of the state program for the capital repair of apartment buildings and an overview of the benefits that can be obtained as a result of the proposed comprehensive modernization.

On 24 and 25 March 2025 in Nukus (Uzbekistan, Republic of Karakalpakstan), the next stage of activities under the FELICITY II pilot project aimed at energy modernisation of apartment buildings kicked off. The project is implemented with financial support from the German Ministry of Economic Affairs and Climate Protection (BMWK) within the International Climate Initiative (IKI). The project partners are the German Society for International Cooperation (GIZ), the German Energy Agency (dena), the Housing Initiative in Eastern Europe (IWO e.V.) and the European Investment Bank (EIB).

Modernisation of Soviet-era residential buildings is one of the most pressing challenges for Uzbekistan and other post-Soviet countries. Most of these buildings were constructed decades ago and today have low energy efficiency, which leads to inconvenience for residents, high utility costs and excessive greenhouse gas emissions. Therefore, among the objectives of FELICITY II is not only to improve the energy efficiency of buildings, but also to create a sustainable mechanism of interaction between residents, municipalities and potential investors in energy efficiency measures.

On 24 March, the Ministry of Construction and Housing and Communal Services of the Republic of Karakalpakstan hosted a round table with the participation of representatives of city and national authorities, international experts from Lithuania and Germany, as well as local partners of the FELICITY II project. 

The Minister of Construction and Housing Kabylbek Aitbayev opened the meeting: “This is not the first time we are discussing this project, and we are glad to hear the experience of European countries that are already actively carrying out modernisation. We are interested in systemic changes in this direction,  so I urge to actively adopt the best European experience“.

Representatives of the three ministries from Tashkent that are associated with the implementation of the pilot project also expressed their readiness to  provide support and encourage potential scaling up.

Valius Serbenta, an international energy efficiency expert, presented the Lithuanian state modernisation programme and explained the reasons for its success: “The key success factor was the active role of municipalities and the involvement of residents. But it is important to create a predictable and understandable model: who is responsible for what and how it affects each resident”.

The next day, an information event with the participation of real estate management companies and residents of the pilot building was held at the Azhiniyaz Pedagogical Institute. The experts once again focused on the role of residents, stressing that responsible attitude to common property is the basis for successful modernisation. 

Larissa Schreckenbach from IWO e.V. summarised the results of the residents’ opinion survey, drawing attention to their high level of interest, which is a signal that local people are ready for change. One of the tasks of IWO e.V. is to support them on this path by providing them with all the information they need in an accessible language. Later, a meeting with residents was held in the courtyard of the pilot building, where the experts commented on the technical data presented in the project factsheet and answered questions from homeowners. This open format is an important aspect of increasing the trust
and informed participation of residents in the modernisation process.

After Nukus, IWO and dena experts moved to Kokshetau, Kazakhstan, to carry out similar activities in another pilot project. As in Nukus, the main focus was on further steps in sustainable interaction between the city, real estate management companies and the residents.

After a round table with local authorities, where strategic modernisation objectives were discussed, a practical workshop with the management companies took place. Alexander Dolgov, an international energy efficiency expert, noted the following: “Our experience shows that management companies can become an important driver of change. But for this they need not only understanding of their role, but also training and, of course, the trust from the residents.”

At the meeting with the residents of the pilot building, concrete technical solutions were presented, and numerous questions were answered. Helene Luft, technical expert from dena, emphasised the importance of ensuring that everyone involved in the process clearly understands what modernisation involves, i.e. what measures are proposed and what the technical parameters of the design are.

Summing up all the events organised in the two pilot cities, it is important to note that sustainable transformation of the housing stock is only possible with the active involvement of all stakeholders. These insightful meetings also showed that with the active participation of residents, the support of local and national authorities, and continuous multilateral dialogue, the path to energy efficient and comfortable housing will become a reality.