Kazakhstan New Auction System for Renewable Energy (Solar, Wind, Biomass, Hydro, Geothermal)
/24th August 2017, RENEWABLE MARKET WATCHTM/ Kazakhstan will switch to the mechanism of auctions to develop renewable sources of energy from the beginning of 2018. At the end of 2016, a total number of 44 countries of the world is successfully applying an auctions system instead of fixed feed-in tariff support systems. Some of the largest global energy companies will be involved in developing renewable energy power plants in Kazakhstan. Aqua Power, Eni-Agip, General Electric, Shell, SANY Group, Hydro China, and many others are among them. Kazakhstan plans to generate 50 percent of its electricity from renewable and alternative energy sources according to President Nazarbayev’s ambitious 2050 strategy. This strategy is a part of the country’s comprehensive initiative to transfer itself from one of the world’s major hydrocarbon energy producers to a model green economy.
Rapid economic growth in the past decade has led to an increase in primary energy consumption and a growing electricity demand according to Kazakhstan Photovoltaic (Solar PV) Market: Outlook 2016÷2025
The procedure for conducting a trading auction session for renewable energy in Kazakhstan includes:
1) Opening by the Organizer of the trading session;
2) Submission of applications to the trading system by Participants;
3) Closing by the Organizer of the trading session;
4) Summing up the results of auction bids, including the determination of auction prices;
5) The organizer of the register of winners of auction tenders and its publication on its Internet web site.
Applications of participants in renewable energy auction tenders in Kazakhstan must contain the following basic information:
1) The name of the Participant;
2) The price of electricity for one kilowatt-hour without VAT, indicated in the national currency (KZT) of the Republic of Kazakhstan with the number of significant digits after the dividing mark is not more than two;
3) The volume of installed capacity in kilowatts, which is a multiple of 100 kW;
4) The land plot planned for the facility's construction for the use of RES and the point of connection to the electrical network (if necessary).
Financial guarantee requirements during the auction process for renewable energy in Kazakhstan is as follows:
Kazakhstan’s Green Bridge Initiative aims to provide a stable and long-term basis for green investment, transfer of new technologies and innovations to create a sustainable economy and new and long-term green jobs.
More information about this very promising renewable power market you may read here: Kazakhstan Wind and Photovoltaic (Solar PV) Power and Market Outlooks 2016 - 2025
