The first auction for selection of Waste-to-Energy projects were successfully held on the trading platform of JSC "KOREM" in the Republic of Kazakhstan.

On this July 15, for the first time in the history of our country, international auctions were held to select Waste-to-energy projects with a total capacity of 100.8 MW.

In 2020, Kazakhstan adopted the first legislative initiatives providing for stimulating measures for waste to energy. Changes are made to legislation of the Republic of Kazakhstan in the field of ecology and energy, which suggest the possibility of implementing the Waste-to-Energy project by processing solid household waste (SHW) into energy. The existing technologies for SHW incineration in the world are safe for the environment.

In order to increase the investment attractiveness of the new waste to energy (WTE) sector and create an integrated waste management infrastructure, it is planned to use a similar mechanism operating in the field of renewable energy sources. Auction bidding mechanism for selection of WTE projects allows creating a competitive field, reducing prices and selecting the most effective projects.

The Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan set the total volume of purchased installed capacity-100.8 MW, broken down by localities (Nur-Sultan-21.1 MW; Almaty-33.3 MW; Aktobe-10.9 MW; Ust-Kamenogorsk-4.5 MW; Shymkent-15.2 MW; Karaganda-15.8 MW.) for auction.

The trading system used the maximum auction price in the amount of 191.9 tenge/ kWh per month (excluding VAT), approved by Order No. 103 of the Acting Minister of Ecology, Geology and Natural Resources of the Republic of Kazakhstan dated April 12, 2021.

During the trading session, an offer of 191.9 tenge/kWh (excluding VAT) from the auction bidder was recorded. In accordance with paragraph 60-17 of the Rules for organizing and conducting auctions, the auction participant accepted the offer of 172.71 tenge/kWh (without VAT). In this regard, the price range of the auction was from 191.9 to 172/1 tenge/kWh (excluding VAT).

Following the auction, the following company was recognized as the winner: Waste2Energy LLP (Kazakhstan) the installed capacity of the project is 100.8 MW, the auction price is 172.71 KZT/kWh (without VAT).

These auctions for selection of WTE projects showed a decrease in the auction price by10% compared to the approved maximum auction price.

Extensions of terms of construction of renewable energy facilities

According to the Ministry of Energy of the Republic of Kazakhstan, an opportunity to extend the deadline for submission of copy of certificate of acceptance of RE facility fora year was given to all renewable energy projects that have existing contracts with the Financial Settlement Center for Renewable Energy.

In order to ensure favorable conditions for implementation of investment projects in the field of renewable energy, on the proposal of the National Chamber of Entrepreneurs of the Republic of Kazakhstan "Atameken", on July 31, 2021, by order of the Acting Minister of Energy No. 252, additions and amendments were made to the Order of the Minister of Energy of the Republic of Kazakhstan No. 164 dated March 2, 2015 "On approval of the Rules for centralized purchase and sale of REF electric energy by Financial Settlement Center".

In particular, in connection with the continuing restrictive measures imposed by the countries to prevent the spread of the COVID-19 coronavirus infection, and the corresponding problems with import of equipment related to downtime at the border and logistics failures, in order to preserve the investment attractiveness of the industry and implement target indicators for development of the renewable energy sector, an additional paragraph was introduced in the order, providing for possibility of extending the deadline for submission of a copy of the certificate of acceptance for RE facility for one calendar year subject to confirmation proving the force majeure circumstances.

At the same time, the validity period of the contract for purchase of RE facilities' electricity by Financial Settlement Center shall be reduced by an equivalent period (one calendar year). Extension of the period shall be executed by an additional agreement to the contract.

For more detailed information about the extension of the deadline for submitting a copy of the certificate of acceptance of RE facility for one calendar year, the Ministry of Energy of the Republic of Kazakhstan recommends contacting the FSC of RE LLP.