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Saturday, December 5th, 2020

Largest global companies to be attracted to developing RES in Kazakhstan

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Largest global companies will be attracted to developing renewable energy sources in Kazakhstan. This was announced by Minister of Energy Kanat Bozumbayev at a conference on reshaping the energy industry.

Over the past few years, Kazakhstan has had a pricing system for energy from renewable sources, called fixed tariffs. That is, the Government adopted a fixed cost of buying electricity from renewable sources, � K. Bozumbayev said.

Consider solar energy � the cost of kilowatt-hour was 34 tenge, which is more than 10 American cents. We believe that it is expensive. It is clear that the prime cost of this energy is formed based on the need to return investments, depreciation of equipment, which is not widely produced in Kazakhstan. Also the cost of funds involved for such projects, � the Minister continued.

Nevertheless, we see that in the last year, year and a half, Chile, Mexico, the United Arab Emirates, Saudi Arabia have all held auctions. The auctions show that as a result of reverse auction for example, (such auctions are attended by largest companies), the average price for electricity is about two and a half cents. That is, even two years ago the price was 4-5 cents, today it is 2.5 cents, let’s say at the latest auction in Abu-Dhabi. Similarly, Kazakhstan follows the same path. Two days ago, the President signed amendments to Laws On Electric Power Industry and On Support of Renewable Energy Sources, which provide for the introduction of an auction system, � K. Bozumbayev said.

The Minister also said that the largest global companies � Aqua Power, Shell, Eni-Agip, General Electric and companies from China � will be involved in developing RES in Kazakhstan.

Source: Government of the Republic of Kazakhstan

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