Expert opinion

Expert opinion21.12.2022

A new trend for the development of microgeneration based on small-scale renewable energy facilities

Dyusenbai Turganov, Deputy of the Majilis Parliament of Kazakhstan

Currently, there is a global trend towards decentralization of power industry. Development of this trend is facilitated by improving technologies, availability of financial opportunities and various incentive programs, as well as public awareness of environmental issues.

According to the International Energy Agency, total installed capacity of home installations (rooftop solar installations with unit capacity up to 10 kW) in the world reached 58 GW* in 2018, and it is planned that by 2024 this figure will be increased by 2.5 times.

Development    of distributed generation (micro-generation) based on small-scale RES facilities, used primarily to meet own needs of households and small and medium­sized businesses, not only contributes to achieving energy security of the country, reducing CO2 emissions within the framework of commitments made under the Paris Agreement, but also improving comfort of citizen's homes, especially in rural areas. It is possible to use various renewable energy technologies - solar panels, solar collectors, heat pumps, boilers running on straw (more than 100 units are successfully operated in the North Kazakhstan region).

The state, having taken a course to expand use of renewable energy and having adopted international commitments to reduce emissions, was focused on the development of relatively large commercial projects in the field of RES. However, the sector of small-scale renewable energy facilities remained without proper legal regulation and, accordingly, support schemes due, on the one hand, to non-developed regulatory framework, on the other hand, to excessive bureaucratic barriers in terms of integrating small-scale facilities into the grid.

It is obvious that there is already a steady trend to increase total installed capacity of decentralized systems, both commercial and industrial, and installations for households.

It should be noted that for consumers, the use of small-scale projects brings a lot of positive aspects. Firstly, when used, the cost of generated electric energy will not depend on cost of energy carriers. Secondly, reduced energy consumption saves resources in medium and longterm. Thirdly, improving comfort of living and fire safety.

In this regard, the Head of State gave instructions on development of small-scale renewable energy sector at the meeting, dedicated to development of electric power industry on May 26, 2021. Pursuant to these instructions, through deputy initiative, I initiated amendments to the legislation of the Republic of Kazakhstan on support for use of renewable energy sources, electric power industry and natural monopolies.

These amendments to the legislation suggest:

•       Introducing the concept of small-scale renewable energy project;

•       Exemption of net consumers from the rules governing activities of energy-producing organizations;

•       Enabling net consumers not to register as individual entrepreneur at installing small-scale renewable energy facilities and generating energy by such facilities;

■       Expansion of support mechanism in the form of targeted aid;

■       Regulation of relationship between net consumers and energy transmission and supply organizations in terms of connecting small-scale RES to the grid, metering of generated electricity, purchase of electricity, etc.;

• Empowering authorized state body and local executive bodies with the competence to regulate issues of connecting small-scale RES and monitoring theirfunctioning.

With current cost levels of electric/thermal energy, use of such systems is not entirely economically profitable without special support measures, but in medium term, use of these systems will be more than justified.

I believe that proposed amendments to legislative acts will contribute to development of small-scale renewable energy projects sector, promoting popularization of renewable energy sources among the country's population and their wider application.

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