Sectoral structure and energy use in Kazakhstan's regions

Kazakhstan's economy is very energy intensive: its GDP energy intensity in 2014 was 53% higher than the world average and 130% higher than in Germany. It is a country with large territory and varying economic structure, climatic conditions, infrastructure and resources from region to region. Decomposition of energy use by its regions and sectors allows better understanding of the energy drivers. This paper analyses the effect of sectoral structure on energy use and energy efficiency of economy by regions. There are large disparities in energy intensities of regions with 11 times difference from the lowest to highest. The main findings are that energy intensity of regional economies declines with increasing GRP per capita. This is due to the low share of energy-intensive industry (energy and metallurgical) and high share of services and lower energy-intensive enterprises (oil and gas) in wealthier regions. Regional indicators should serve as a basis for national purposes or, conversely, of the national goals should be developed regional indicators. Regional indicators should take into account local conditions and needs, and in the amount required to meet national targets, and load distribution by region should be carried out without neglecting the initial conditions.