QAZAQ GREEN.  On November 24, 2022, Kazakhstan held an auction for RES for the northern zone of the Unified Energy Network of Kazakhstan to select the wind power plants with a total installed capacity of 50 MW, KOREM JSC reports. 

Nine companies were allowed to participate in the auction; during the bidding session, participants submitted 30 price bids, with a unit capacity of projects ranging from 15 to 50 MW. The total volume of bids submitted was 415 MW. The marginal auction price to select the WPP projects in 2022 was 21.53 KZT/kWh (excluding VAT). During the trading session, the price range of bids received from the auction bidders was between 21.53 and 12.98 KZT/kWh (excluding VAT). 

Under Paragraph 8-1 of the Rules for Organisation and Conduct of Auction Bidding, which includes qualification requirements for auction bidders, the content and procedure for submitting an application, types of financial security for the auction bid, and the conditions for their payment and return, the procedure for conducting the results and determining the winners, approved by Order No. 466 of the Minister of Energy of the Republic of Kazakhstan dated December 21, 2017, the auction bidding for the selection of projects for construction of solar and wind power plants is conducted according to information on the possibility of connection to the grid connection points and reserved land plots for the planned construction of facilities specified in the schedule.

According to the schedule of 2022 auction bidding, approved by Order No. 243 of the Minister of Energy of the Republic of Kazakhstan dated July 18, 2022, the quantity of new connections for this auction bidding is two.

Thus, according to the results of the auction, the following companies were determined as winners:

Orkan LLP (Kazakhstan) with an installed capacity of the project - 15 MW, auction price - 12.98 KZT/kWh (excluding VAT). The project will be located in Gabit Musrepov district of the North Kasakhstan region.

Afrik LLP (Russian Federation) with an installed capacity of the project - 35 MW, auction price - 15.96 KZT/kWh (excluding VAT). The project will be located in Gabit Musrepov district of the North Kazakhstan region.

Representatives of the Ministry of Energy, Kazakhstan Electric Power Association, Kazenergy, and UNDP in Kazakhstan attended the auction as observers. They noted that the auction was held in accordance with the approved regulatory legal acts and confirmed the transparency of the electronic trading system of the auction organiser - KOREM JSC.

The maximum reduction of the auction price was 40%, which is a good result. Auction bidding is aimed at selecting the most efficient projects and establishing market-based competitive prices for electricity produced by RES facilities.

The next auction is scheduled for November 28, 2022, to select wind power projects with a total installed capacity of 50 MW.