News Kazakhstan30.11.2023
Auction for BioPP construction declared invalid
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QAZAQ GREEN. The auction for Renewable Energy Sources (RES) related to the construction of a 10 MW Biomass Power Plant (BioPP) held on November 30, 2023, has been declared invalid.
Following the trading session, three companies were permitted to participate, collectively declaring a capacity of 10.6 MW. However, the total financial support did not surpass 130% of the declared volume, as stipulated by subparagraph 1) paragraph 51 of the Rules for the organization and conduct of auction bidding. Consequently, the auction was invalidated.
Despite the auction results, no winner was determined. To ensure compliance with auction regulations, representatives from KAZENERGY, Kazakhstan Association of Regional Environmental Initiatives 'ECOJER', and UNDP participated as observers.
It's noteworthy that, as per the 2023 auction schedule approved by the Order of the Minister of Energy of the Republic of Kazakhstan No. 187 dated May 23, 2023, the total installed capacity for RES project auctions in 2023 was planned to be 860 MW, distributed among Solar Power Plants (SPP) - 100 MW, Wind Power Plants (WPP) - 500 MW, Hydropower Plants (HPP) - 250 MW, and BioPP - 10 MW.
The maximum starting auction prices for 2023 auctions were set as follows:
· HPP – 41.23 KZT/kWh
· WPP – 22.68 KZT/kWh
· SPP – 34.61 KZT/kWh
· BioPP – 32.23 KZT/kWh
Out of the 16 planned auctions (3 for small projects and 13 for major projects), two were declared invalid due to an insufficient number of participants (large HPP and small BioPP). The auction for large hydropower plants was recognised as valid after a rebidding process.
The results of the RES auction in 2023 showcased the maximum reduction in auction prices for projects: SPP – 59.86%, HPP – 57.5%, WPP – 54.23%, while the BioPP auction was declared invalid. Overall, this outcome underscores the effectiveness of auctions in reducing prices and establishing market prices for electric energy from RES facilities.
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