Industry news archive

04 August, 2022
1 Photo

Auction trades are a mechanism for selecting renewable energy projects.

1 Photo

Kazakhstan's energy sector is undergoing a transition period and is undergoing significant structural changes aimed at ensuring universal access to affordable, reliable, sustainable and modern energy sources.

By creating market and regulatory conditions, Kazakhstan attracts investment and accelerates innovation with the help of efficient, reliable and sustainable technologies. Currently, Kazakhstan is a party to the Paris Climate Agreement and an action plan for their implementation has been developed at the national level. One of the objectives of the electric power industry development plan is the large-scale development of renewable energy sources as a measure to limit greenhouse gas emissions.

The state programs set the main rates of development of the use of solar and wind energy in Kazakhstan:

- by 2020 – 3% of the total energy balance,

- by 2025 – 6%,

- by 2030 – 10%.

The current auction bidding mechanism is actively used to implement the plan. Since the launch of auctions for the selection of renewable energy projects in Kazakhstan, auctions have been held with a total volume of 1,705 MW of installed capacity, broken down by types of power plants:

- wind- 835 MW;

- solar - 445 MW;

- hydro - 380 MW;

- bio - 45 MW. In 2018 - 1000 MW; 2019 - 255 MW; 2020-250 MW; 2021 -200 MW.

The auction selection mechanism has shown its attractiveness to potential investors. 113 Kazakhstani and foreign companies took part in the auction. The geography of auctions was represented by nine countries of the world – Kazakhstan, Russia, China, Turkey, France, Bulgaria, the UAE, Italy, the Netherlands.

In 2022, according to the Auction Schedule approved by the Order of the Minister of Energy of the Republic of Kazakhstan No. 243 dated 18.07.2022, it is planned to hold 13 auctions in the amount of 690 MW of installed capacity, broken down by types of power plants:

- solar power plants (SES) - 60 MW;- wind power plants (wind farms) - 400 MW, of which: 150 MW with documentation;

- hydroelectric power plants (HPP) - 220 MW;

- biofuel power plants (BioRes) - 10 MW.

The raffled volume of auctions in 2022 significantly exceeded the volumes of previous years. This creates conditions for the development of the renewable energy sector in the Republic of Kazakhstan. The main task of renewable energy development is to bring the volume of renewable energy sources in the total energy balance to 10% by 2030.