QAZAQ GREEN. On November 13, 2023, the auction bidding process commenced for the selection of Renewable Energy Source (RES) wind power plant projects in the Northern Zone of the Unified Energy System (UES) of Kazakhstan, boasting a cumulative installed capacity of 100 MW, JSC «KOREM» reports.

The Ministry of Energy of the Republic of Kazakhstan approved a marginal auction price of 22.68 KZT/kWh (excluding VAT) for the 2023 RES project selection auction bidding.

Six companies were admitted to participate in the auction, resulting in the submission of 18 price bids during the trading session. The cumulative bid volume reached 450 MW.

"The auction mechanism for selecting RES projects is the most efficient, comprehensible, and transparent tool for green energy development. Over its years of existence, more than 230 companies from 13 countries have participated in the auctions. Today, our auctions are acknowledged by international organizations such as EBRD, ADB, World Bank, UNDP. We anticipate continued development of RES auctions in the future," stated Ainur Sospanova, Chairperson of the Board of the "Qazaq Green" RES Association.

Throughout the competitive auction process, the price range experienced a notable reduction, narrowing from 22.68 to 10.5 KZT/kWh (excluding VAT), marking a record 54% decrease from the auction's price limit for wind power plant project selection.

As a result of auction bidding, the winner became "SANGROW KAZAKHSTAN HOLDINGS" LLP, securing a project with an installed capacity of 100 MW at an auction price of 10.5 KZT/kWh (excluding VAT). The project is slated for development in the Kostanay region.

To adhere to the Rules of Organization and Conduct of Auction Bidding, the representatives of the Ministry of Energy of the Republic of Kazakhstan, National Chamber of Entrepreneurs of the Republic of Kazakhstan "Atameken", Kazakhstan Electrical Power Association (KEPA) and "Qazaq Green" RES Association participated as observers. 

These observers affirmed that the auction bidding was in line with approved regulations and confirmed the transparency of the electronic trading system managed by the auction organizer, JSC «KOREM».

"The auction conducted on November 13 set a record-low tariff for implementing RES projects at $0.023/kWh. Traditionally, we've observed substantial decreases in solar auction prices, but the recent advancements in wind technology and global production capacity bring such results," said Nurlan Kapenov, Chairman of the Board of Directors of the "Qazaq Green" RES Association.

The next auction is scheduled for November 14, 2023, focusing on the selection of wind power station projects with a combined installed capacity of 100 MW.

Reference:

As outlined in the 2023 Schedule of Auction Bidding, sanctioned by the Minister of Energy of the Republic of Kazakhstan through Order No. 187 dated May 23, 2023, the total installed capacity earmarked for RES project selection auction bidding in 2023 is 860 MW, distributed across solar power plants (SPP) - 100 MW, wind power plants (WPP) - 500 MW, hydroelectric power plants (HPP) - 250 MW, and biofuel power plants (BioPP) - 10 MW.