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For the 2020 auctions, the following starting auction price limits were set:

• WPP – 21,69 tg/kWh;
• SPP – 16,97 tg/kWh;
• HPP – 15,48 tg/kWh;
• BioPP – 32,15 tg/kWh.

In total, 8 auctions were planned and held: 4 for small ones without documentation, 2 for large ones without documentation, and 2 for large ones with documentation. Auctions were held in normal mode, while 2 auctions were declared invalid due to insufficient number of participants (large HPP and BioPP).

27 Kazakhstani and foreign companies from 4 countries took part in the auctions: Kazakhstan, Russia, the Netherlands and Germany. The total volume of requests received from auction participants was 493.9 MW, it means that the volume of request exceeded the volume of supply by 2 times. In particular, for the WPP, SPP and small HPP projects, the volume of request exceeded the volume of supply by about 2 times, but the greatest interest from investors was in the WPP, in which the volume of request exceeded the volume of supply by 5 times (table 1).

Table 1. Results of auctions for the selection of RES projects in 2020

Auctions without documentation in 2020

In general, 16 RES projects with a total installed capacity of 147.95 MW were selected in the 2020 auctions, including 64.95 MW of WPP, 60 MW of SPP, and 23 MW of small HPP. 60% of the offered auction capacity was selected by the auction winners.

On November 9, 2020, an auction was held without documentation for small HPP projects with an installed capacity of 20 MW in the Northern and Southern zones. 8 companies were allowed to participate in the auction. During the trading session, participants submitted 27 price offers with a single project capacity from 1 to 5 MW. The total volume of applications submitted was 23 MW. The maximum auction price for the selection of HPP projects in 2020 was 15.48 tg/kWh (without VAT). During the trading session, the price range of the auction was from 15.20 to 14.98 tg/kWh (without VAT).

In accordance with paragraph 56-1 of the «Regulations of organizing and conducting auctions, including qualified requirements for auction participants, the content and procedure for submitting an application, types of financial security for an application to participate in the auction and the conditions for their deposit and return, the procedure for summing up 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 (hereinafter referred to as - the auction Rules), two participants of the auction accepted the offer at the price of 13.48 tg/kWh (without VAT). In this regard, the auction price range was from 15.20 to 13.48 tg/kWh (without VAT).

On November 10, 2020, an auction was held without documentation for small SPP projects with an installed capacity of 15 MW in the Northern and Southern zones. 5 companies were allowed to participate in the auction. During the trading session, participants submitted 49 price offers, with a single project capacity from 1.2 to 10 MW. The total volume of applications submitted was 36.15 MW. The maximum auction price for the selection of SPP projects in 2020 was 16.97 tg/kWh (without VAT). During the trading session, the price range of requests received from auction participants ranged from 16.9 to 14.99 tg/kWh (without VAT).

On November 11, 2020, an auction was held without documentation for small WPP projects with an installed capacity of 15 MW in the Northern and Southern zones. 5 companies were allowed to participate in the auction. During the trading session, participants submitted 13 price offers, with a single project capacity from 4.95 to 10 MW. The total volume of applications was 29.8 MW. The maximum auction price for the selection of WPP projects in 2020 was 21.69 tg/kWh (without VAT). During the trading session, the price range of bids received from auction participants ranged from 21.69 to 21.09 tg/kWh (without VAT).

On November 23, 2020, an auction was held without documentation for small BioPP projects with an installed capacity of 10 MW in all zones of the UPS of the Republic of Kazakhstan. This auction was declared invalid according to the condition specified in subparagraph 2) of paragraph 51 of the auction Rules, the number of participants registered and admitted to the relevant auctions in the trading system is less than two.

On November 24, 2020, an auction was held without documentation for large WPP projects with an installed capacity of 50 MW in the Northern and Southern zones. 6 companies were allowed to participate in the auction. During the trading session, participants submitted 44 price offers, with a single project capacity of 50 MW. The total volume of applications was 300 MW. The maximum auction price for the selection of WPP projects in 2020 was 21.69 tg/kWh (without VAT). During the trading session, the price range of requests received from auction participants ranged from 21.65 to 15.9 tg/kWh (without VAT).

On November 25, 2020, an auction was held without documentation for large HPP projects with an installed capacity of 100 MW in the Northern and Southern zones. This auction was declared invalid in accordance with the condition specified in subparagraph 2) of paragraph 51 of the auction Rules, the number of participants registered and admitted to the relevant auctions in the trading system is less than two. The list of winners of auctions without documentation in 2020 is presented in table 2.

Table 2. Results of auctions for the selection of RES projects without documentation in 2020

As part of the project implementation, LLP "FSC for RE" has developed pre-project documentation for these projects, which includes the necessary calculations, assessment of resource potential, land purchase/lease costs, power distribution scheme and technical conditions for connection, etc.

Auctions with documentation for SPP projects in 2020

On December 8, 2020, an auction was held with documentation of the installed capacity of 20 MW near the city of Kentau in the rural district of Iassy in the Turkestan region. 3 companies from 2 countries took part in the auction: Russia, Germany. During the trading session, the auction participants submitted 48 price offers, as a result of which the starting auction price – 16.97 tg/kWh (without VAT) decreased by 14.1% and amounted to 14.58 tg/kWh (without VAT).

On December 10, 2020, an auction with documentation of the installed capacity of 20 MW was held near the city of Aralsk, Kyzylorda region. 2 companies from Russia took part in the auction. During the trading session, the auction participants submitted 2 price offers, resulting in a starting auction price of 16.97 tg/kWh (without VAT). decreased to 16.96 tg/kWh (without VAT). The list of auction winners with documentation for 2020 is shown in table 3.

Table 3. Results of auctions for the selection of RES projects with documentation in 2020

As a result of this year's auctions, the maximum reduction in the auction price for WPP projects was 26.7%, SPP-14%, and small HPP-13%. This is a good result, confirming that auctions provide a reduction in prices and allow you to determine the market prices for electricity from renewable energy facilities (figure 1).

Figure 1. Price reduction at auctions in 2020

The list of winners of auctions for the selection of RES projects in Kazakhstan in 2020 is presented in table 4.

Table 4. List of winners of auctions for selection of RES projects in Kazakhstan 2020

Note: * - Small (from 0.1 to 10 MW inclusive), large (over 10 MW)
Representatives of the Ministry of energy of the Republic of Kazakhstan, ALE "KazEnergy", ALE "KEA", the European Bank for Reconstruction and Development, USAID, UNDP and FSC of RE LLP took part in the auction as observers. Observers noted that the auction was held in accordance with the approved regulatory legal acts and confirmed the clarity of the electronic trading system of the auction organizer – JSC "KOREM".