MGM auctions

Organization and Conduct of Auctions for the Selection of Projects for the Construction of Newly Commissioned Generating Units with a Flexible Generation Mode

In accordance with the instruction of the Head of State, Kassym-Jomart Tokayev, dated January 26, 2021, the Republic of Kazakhstan is implementing a set of measures aimed at commissioning new regulating electric power capacities for the development of flexible generation.

To achieve this objective, an auction mechanism was introduced, whereby auctions are organized and conducted by the auction operator through an electronic trading system based on the auction method. The primary objective of this mechanism is to select the most efficient projects for the construction of newly commissioned generating units with a flexible generation mode, as well as to determine an individual tariff for the electric capacity availability service for each winning project.

The introduction of the auction mechanism has made it possible to identify promising sites for the construction of new generation facilities and to create favorable conditions for attracting both domestic and foreign investors.

The construction of flexible generation capacities is of strategic importance for the country's power system. Such facilities ensure оперативе regulation of electricity generation in response to changes in electricity demand, improve the reliability and stability of the power system, and contribute to the uninterrupted supply of electricity to the population and industrial enterprises.

Furthermore, the implementation of projects for the construction of flexible generation facilities promotes investment, facilitates the introduction of modern technologies, supports the development of the energy sector, and creates new jobs. In the long term, this enhances energy efficiency, strengthens the state's energy security, and lays the foundation for sustainable socio-economic development.

Auction Organization and Administration Services

As the auction organizer, KOREM JSC provides auction organization and administration services for the selection of projects for the construction of newly commissioned generating units with a flexible generation mode, which include:

• registration of participants in auctions for the selection of projects for the construction of newly commissioned generating units with a flexible generation mode;
• organization and conduct of auctions for the selection of projects for the construction of newly commissioned generating units with a flexible generation mode;
• training and instruction for trading operators of auction participants on the operation of the electronic trading system for auctions for the selection of projects for the construction of newly commissioned generating units with a flexible generation mode;
• maintaining the electronic trading system in continuous operational condition to ensure the conduct of auctions for the selection of projects for the construction of newly commissioned generating units with a flexible generation mode.

The fee for the auction organization and administration services provided by KOREM JSC amounts to KZT 2,200,000 (two million two hundred thousand tenge), excluding VAT, and shall be paid by each auction participant.