On 16 February 2025, amendments to the Rules for organising and conducting auctions for renewable energy source projects came into effect. These changes were introduced by the Order No. 454 of the Acting Minister of Energy of the Republic of Kazakhstan dated 11 December 2024. On 3 March 2025, minor amendments to the Rules were also made by Order No. 114 of the Minister of Energy of the Republic of Kazakhstan.
According to these amendments, renewable energy sources (RE) are divided into two categories based on installed capacity:
- RE facilities with an installed capacity of up to 499 MW, and
- RE facilities with an installed capacity of over 499 MW.
RE projects with an installed capacity below 499 MW will continue to be regulated by the previous rules, while additional requirements have been introduced for RE projects exceeding 499 MW.
Additional requirements for participation in auctions for RE projects over 499 MW:
- Confirmation of Experience - Participants must demonstrate experience in investing, constructing, and commissioning RE facilities with a capacity of at least 100 MW in Kazakhstan. This experience includes directly or indirectly owning at least 20% of the shares (or equity) in a legal entity that owned the facility at the time of its commissioning.
- Ownership Structure - Participants must provide a detailed ownership structure up to the ultimate beneficiary, confirming that at least 51% of the final ownership belongs to Kazakhstani residents.
Furthermore, the winner must simultaneously construct and commission an energy storage system with a capacity of at least 30% of the RE facility's capacity. This system must ensure power output for 2 hours throughout the duration of the power purchase agreement (PPA). In addition, legislators have stipulated that the transfer of rights and obligations under the PPA is prohibited, ensuring that these responsibilities remain with the original project developer throughout the agreement's term.
The changes also affect the mechanics of the auctions and the amount of financial security required for applications. Therefore, now participants may modify their previously submitted bids by submitting a new bid with a lower price than the previous minimum bid before the application deadline. However, the volume of the previously submitted bid cannot be changed. The financial security amount for participation in auctions for projects exceeding 499 MW is set at KZT 5,000 per 1 kW.
Overall, these amendments prevent foreign developers without prior experience in Kazakhstan's RE projects from participating in auctions for facilities over 499 MW. These changes aim to ensure the successful implementation of major RE projects while promoting local participation and expertise in Kazakhstan's renewable energy sector.
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