Start of renewable energy auction
The first international auction for the renewable energy projects will be held in Kazakhstan from May 23 to June 7. According to the officials of the Kazakh Ministry of Energy, both domestic and foreign companies are welcomed to participate in the auction. The procedure to participate include online registration and attachments of organizational and solvency documents. 1,000 megawatt will be traded at the auction. Over half of the amount will be generated by the wind power stations while the remaining amount represent solar, hydraulic and biogas plants. The auction mechanism will be as simple as possible, the ministry officials said. A rapid and transparent process excluding human involvement as well as online identification of the cheapest offers are the major advantages of the auction. The trading session will last for three hours.
AINUR SOSPANOVA, DIRECTOR, DEPARTMENT FOR RENEWABLE ENERGY SOURCES, KAZAKH ENERGY MINISTRY:
- I think that the auction mechanism will allow identifying a fairer price for renewable energy in Kazakhstan. There are factors that affect the cost of renewable energy such as the value of our money, the effectiveness of the solar and wind potential, platforms existing in Kazakhstan, the cost of construction and a number of other aspects. As it is a pilot project this year, we will be able to develop more transparent projects selection and attract large international players.
The auction mechanism in Kazakhstan is set to provide fair price for renewable energy sources. Participant who offers the lowest price for the tariff will be the winner and holder of the 15-year contract with the accounting and finance center for the purchase of electricity. The new development has become possible due to the amendments to the law adopted last year. Experts believe that these changes will allow the improvement of investment attractiveness of the alternative energy sector.