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Feed-in tariffs for solar energy in Kazakhstan to be adjusted with currency devaluation

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Feed-in tariffs for solar energy have been approved from the Government of Kazakhstan on 12th June 2014 and have been are equal to approximately € 0.145/KWh (KZT 34.61/KWh). However after Government's decision of switching to free floating currency exchange rate in August 2015, Kazakhstan's tenge (KZT) plunged to almost 30 % slide measured at the end of October 2015. Kazakhstan’s decision was forced after the sharply falling crude oil prices and because penalties to Russia for the conflict in Ukraine drove the Russian ruble to almost 45 % down in the past 12 months. This sharp currency devaluation reflects automatically to reduction of feed-in tariff rate when measured in any of the hard currencies (USD, EU, GBP, etc.). Logically all local and international developers and investors in solar PV projects in Kazakhstan has risen question in front of the Government for appropriate adjustment of feed-in tariff with the rate of currency devaluation. According to Kazakhstan Photovoltaic (Solar PV) Market Outlook 2015 - 2025 adjustment of feed-in tariffs for solar (and other renewable) energy in Kazakhstan to compensate currency devaluation shall be approved by the Government in within the next 2 – 3 months.

"Cumulative PV installations in CIS countries are 851 MW (0.85 GW) at the end of 2014"

Total cumulative photovoltaic installations in CIS countries have reached 851 MW (0.85 GW) at the end of 2014, a very small share of the global cumulative installed photovoltaic capacity of 184 GW in 2014. However, situation at CIS countries solar PV market is about to change in positive growth direction. Besides Ukraine, which is undisputed leader by means of installed PV capacity among CIS countries, Kazakhstan also has its ambitions to take serious share from this market.

"Kazakhstan is suitable for the production of photovoltaic energy throughout the whole year"

At the end of 2014 Kazakhstan was trailing with only 5 MW cumulative installed solar capacity, which represented less than 1 % of total installed capacity for 2014 in CIS countries. Geographically, the country is suitable for the production of photovoltaic energy throughout the whole year. The solar radiation potential on the Kazakhstan's territory is good despite the large differences in the sunlight intensity between the South and North regions in the country. The average annual sunshine duration is roughly 2,200—3,000 hours and the average solar radiation resource is varying in the range 1,300 – 1,800 kWh/m2.

"First large scale PV power plant in Kazakhstan was launched into operation in 2015"

At the moment, approx. 87% of Kazakhstan’s electricity is generated mainly from coal-fired plants and approx. 9% from hydroelectric sources.  The coal thermal power plants are located in north regions, which are traditionally producing coal. Hydro power plants are located mostly along the Irtysh River. The southern regions of Kazakhstan suffer from lack of sufficient energy resources and for this reason electricity consumption is covered by import from the Kyrgyz Republic. The transmission and distribution system comprises 3 different grid networks, two in the north and one in the south, totaling 285,000 km of distribution lines.

First large scale PV power plant in Kazakhstan was launched into operation in 2015, whilst other large scale PV power plants are under construction. You will find out Renewable Market Watch’s latest Q4 2015 update after in-depth analysis and careful review of Kazakhstan solar PV market performance.

More information about this very promising solar market you may read here: Kazakhstan Photovoltaic (Solar PV) and Market Outlook 2015 - 2025