Eighty-seven renewable energy facilities to operate in Kazakhstan by the end of 2019 — Ministry of Energy

Tuesday, 29 October 2019, 17:54:41

At the government session chaired by Prime Minister Askar Mamin, issues related to the development of renewable energy sources were considered.

Minister of Energy Kanat Bozumbayev said that significant investments are currently being made in the development of renewable energy, which is facilitated by the very significant potential of renewable energy sources in Kazakhstan, the legislative framework and the adopted target indicators.

“It is necessary to bring the share of renewable energy in the total volume of electricity production to 3% in 2020, to 6% in 2025, by 1030 — 10%, and by 2050, renewable and alternative energy sources should account for at least half of the total energy consumption” said Bozumbayev.

As the minister of energy noted, a completely new energy sector has appeared in the country, a market for green energy has formed. The law defines support measures in the form of a guaranteed purchase of electricity from renewable sources by a single purchaser of electricity — the Settlement and Financial Center under a 15-year agreement at the auction rate, as well as ensuring the connection of the facility to electric networks.

“Tariffs are indexed annually taking into account inflation and changes in the dollar exchange rate, energy producers are exempt from paying the services of energy transmission organizations for the transmission of electric energy. Within the framework of the Entrepreneurial Code, investment preferences are provided,” said the minister.

According to the minister, the system of fixed tariffs at the initial stage of development allowed to quickly launch the green energy market. In 2014, there were 26 operating facilities with an installed capacity of 178 MW.

At the end of 2019, 87 facilities with a capacity of 1,042 MW will operate in the country.

“Production for 9 months of this year amounted to 1.65 billion kWh, its share is about 2.2% of the domestic market. An annual target of 2.4 billion kWh will be met. The increase in electricity production by renewable energy facilities for 9 months of 2019 compared to the same period in 2018 is — 65%,” the minister said.

Thanks to the systematic work to increase capacity, by the end of 2020, 108 facilities with a capacity of 1,610 MW will operate in the system, by the end of 2024 there will be at least 3,000 MW of renewable energy in the power system.

Bozumbayev informed that investors from 10 countries of the world, as well as large financial organizations such as the EBRD, ADB, DBK, are now working in the green energy sector. The Asian Infrastructure Investment Bank as the first investment project in Kazakhstan chose the renewable energy facility — a 100 MW wind farm in the Zhambyl region. This transaction should be completed before the end of this year.

“A good signal for us is the fact that large oil companies such as Shell, Eni, Total, which win the right to implement projects in Kazakhstan in the competition, came to the green energy sector as investors. Thus, from the moment the Settlement and Financial Center has been operating, about 406 billion tenge has been attracted to the renewable energy sector and the constructed facilities will pay about 81 billion tenge of taxes,” Bozumbayev said.

Also, during the construction period, Kazakhstani engineers, builders and support staff are involved.

Since last year, the selection for the implementation of projects has been through the auction mechanism. This allows you to gradually reduce the impact on tariffs for end consumers from the commissioning of renewable energy sources.

International auction auctions 2018 – 2019 were held in electronic format for projects with a total capacity of 1,205 MW. The auction was attended by 138 companies from 12 countries. Auction bidders proposed applications for projects with an installed capacity of about 3,900 MW, which exceeded demand by 3.2 times.

As a result of the auction, 30 companies signed contracts with a single purchaser of electricity for 15 years for a total capacity of 804 MW and 12 companies at the stage of signing contracts with the RFC for a total capacity of 163 MW.

Along with this, the minister emphasized that in different countries, distributed small-scale generation at the level of households, small and medium-sized businesses was widespread. In accordance with the law, the state provides individual consumers in non-electrified settlements with a 50% subsidy on the cost of 5 kW of a Kazakhstan-made installation. To actively engage households and businesses in the use of distributed generation, it is proposed to improve the norms for economic incentives for the population to use green energy for their own needs, to solve issues related to the sale of surplus electricity to the network, so-called net-metering, financial instruments are needed (leasing, subsidizing interest rates, etc.)

Chairman of the Board of Kazakhstan Electricity Grid Management Company KEGOC JSC Bakytzhan Kazhiev reported on interaction with the renewable energy market. According to him, today it is necessary to increase volumes and for this all indicators exist. The state has clearly identified target indicators to increase the share of renewable energy in the total electricity production. In 2013, KEGOC JSC established a financial settlement center for renewable energy support, the aim of which is to guarantee the purchase of electricity at fixed tariffs and auction prices for 15 years.

“Since the launch of the renewable energy support mechanism, electricity purchase volumes have grown from 8 million kW / h in 2017 to 1.7 billion kW / h in 2019. According to forecasts, by 2025 this figure will reach 7.2 billion kW / h,” Kazhiev summed up.


News feed
30 March 2020, 16:55
Sizes of pay raise approved for medical workers involved in treatment of patients with coronavirus
28 March 2020, 19:10
One job in automotive industry stimulates creation of 7-8 jobs in related areas
28 March 2020, 11:56
Prime Ministers of Kazakhstan and Uzbekistan Askar Mamin and Abdulla Aripov launch joint production of new car models in Kostanay
28 March 2020, 11:34
Gulshara Abdykalikova appointed akim of Kyzylorda region
27 March 2020, 13:01
Activities of enterprises and organizations to be suspended from March 30 to April 5 in Nur-Sultan and Almaty
27 March 2020, 08:30
Housing Construction Savings Bank to grant deferrals to customers automatically, without supporting documents
26 March 2020, 18:42
State Commission on Ensuring the State of Emergency under President of Kazakhstan strengthens restrictions in Nur-Sultan, Almaty and Shymkent
24 March 2020, 15:11
Government considers measures to implement instructions of the Head of State
24 March 2020, 14:34
Birgemiz Public Fund announces the Board of Trustees
22 March 2020, 13:20
Video Digest: Main events of the week, No. 53
21 March 2020, 14:50
Prime Minister Askar Mamin holds telephone conversations with heads of government of Russia, Uzbekistan, Kyrgyzstan and Tajikistan
21 March 2020, 12:34
Askar Mamin congratulates Kazakhstanis on Nauryz
20 March 2020, 17:52
Askar Mamin instructs akims, large enterprises and SMEs to ensure preservation of jobs
20 March 2020, 12:00
Quarantine is not a restriction on providing Kazakhstanis with necessities – Tugzhanov
20 March 2020, 11:53
70% of employees of state organizations in the capital and Almaty switched to remote work
20 March 2020, 11:29
Over 32 billion tenge to be allocated in Kazakhstan to ensure food security
20 March 2020, 09:38
Prime Minister Askar Mamin inspects progress of work on ensuring quarantine regime in Nur-Sultan
19 March 2020, 22:18
Briefing on measures to prevent the spread of COVID-19 in Kazakhstan
18 March 2020, 18:59
Government will ensure price stability and uninterrupted food supply
17 March 2020, 20:36
About restrictions on entry-exit to / from the cities of Nur-Sultan and Almaty
17 March 2020, 18:50
In 2020, Baiterek Holding to support over 19 thousand SME projects
17 March 2020, 16:10
State Commission for Ensuring State of Emergency under the President of Kazakhstan introduces quarantine regime from March 19 in Nur-Sultan and Almaty
17 March 2020, 14:13
Dalenov speaks about measures to support temporarily closed facilities
17 March 2020, 13:50
Prices should return to level of early last week — Bakhyt Sultanov calls on Kazakhstani entrepreneurs
17 March 2020, 13:41
In Kazakhstan, a ban to be introduced on calculating remuneration for delays of more than 90 days on consumer loans of individuals — Madina Abylkassymova
17 March 2020, 13:13
Alikhan Smailov speaks about special procedure for budgeting during emergency
17 March 2020, 12:52
Two hundred thousand jobs to be created in Kazakhstan — Birzhan Nurymbetov on measures to ensure employment of citizens
17 March 2020, 11:36
Kazakhstan created necessary conditions for saturating market with domestic food products — Ministry of Agriculture
17 March 2020, 11:22
By beginning of spring field work, readiness of equipment to be 100% — Ministry of Agriculture
17 March 2020, 11:07
Large trade objects, cinemas and sports facilities to be exempt from tax payment for one year — Ministry of National Economy
17 March 2020, 10:07
Government reviews preparations for spring field work
17 March 2020, 09:52
Government approves anti-crisis package
16 March 2020, 20:34
Prime Minister Askar Mamin holds meeting with heads of retail chains
16 March 2020, 18:27
Government session to be held March 17 in Ukimet Uyi
16 March 2020, 16:59
Prime Minister Askar Mamin holds meeting of State Commission on Ensuring State of Emergency under President of Kazakhstan
16 March 2020, 15:59
Switching from Cooperatives to Associations of Housing Owners: How will monthly size per square meter be calculated
16 March 2020, 15:55
One house – one account: Residents to manage the money themselves
16 March 2020, 15:40
Main idea of ​​creating Associations of Property Owners — to let people manage their own house — interview with Margulan Abdykarimov
15 March 2020, 19:21
No cases of coronavirus infection found in western regions and Kyzylorda region of Kazakhstan
15 March 2020, 19:16
Tugzhanov: All social obligations to be fulfilled in due time
14 March 2020, 21:07
Roman Sklyar and Yerlan Turgumbayev made aerial visual inspection of snow reserves
14 March 2020, 14:10
Video Digest: Main events of the week, No. 52
13 March 2020, 15:09
Prime Minister of Kazakhstan Askar Mamin held telephone conversations with prime ministers of Russia Mikhail Mishustin and Belarus Sergei Rumas
12 March 2020, 20:02
Rapid Response Working Group chaired by Prime Minister Askar Mamin hears reports from akims of regions
12 March 2020, 16:23
Prime Minister Askar Mamin holds meeting of National Commission for Modernization
12 March 2020, 14:12
State will expand measures to support business and entrepreneurship development – Prime Minister Askar Mamin
11 March 2020, 12:00
Procession of the Golden Man continues in India
10 March 2020, 21:55
Rapid Government response and fulfillment of social obligations, or what was discussed at regular session of the Cabinet of Ministers
10 March 2020, 19:44
Prime Minister Askar Mamin holds meeting of Republican Rapid Response Working Group
10 March 2020, 16:21
Optimized funds to be used to ensure social benefits — Ministry of Finance
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan