News Kazakhstan

News Kazakhstan20.06.2024

New Renewable Energy Law stimulates small-scale generation selling surplus electricity in Kazakhstan

QAZAQ GREEN. President Kassym-Jomart Tokayev has signed the Law of the Republic of Kazakhstan "On Introducing Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Support for the Use of Renewable Energy Sources and the Electric Power Industry," according to Akorda.

This law aims to enhance further the mechanisms supporting and developing the energy sector.

The law introduces the concept of "small-scale facility for the use of renewable energy sources" - technical devices with a capacity of no more than 200 kilowatts, producing electricity and/or heat using renewable energy sources (RES).

Owners of small-scale RES can use the electricity and/or heat energy generated by these facilities for their own needs and sell any surplus electricity to an energy-supplying organization.

Surplus electricity will be bought by energy-supplying organizations at a marginal price (without differentiation by consumer groups) set by the Committee for Regulation of Natural Monopolies of the Ministry of National Economy.

To ensure the purchase of electricity generated by small-scale RES and eliminate barriers to grid access, energy-supplying organizations are required to conclude power purchase agreements and energy-transmission organizations must provide unimpeded access to their grids.

Small hydropower plants with a total capacity of no more than 10 megawatts, commissioned before 1 July 2023, are permitted to sell their electricity directly to power supply companies, bypassing a single purchaser system. Electricity generated by SHPPs will be purchased by power-supplying organizations on a priority basis at a marginal tariff set by the Ministry of Energy, which will be re-approved every seven years.

The law adjusts the conditions for concluding investment agreements for the modernization, reconstruction, and/or expansion of generating plants using gas as an alternative fuel type.

The law introduces crediting for the construction, reconstruction, and modernization of power grids owned by regional power grid companies that are public utilities, using budget funds. The crediting rules will be approved by the Ministry of Energy in coordination with the Ministry of Finance.

The full text of the law is published in the press.

 

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