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Changes made by the Ministry of energy of the Republic of Kazakhstan in the current year to the "Rules for organizing and conducting auctions, including the qualification requirements for auction participants, content and procedure for submitting an application, types of financial security of the application for participation in the auction and conditions for their entry and return, the procedure for summing up and determining the winners" (hereinafter – the RES Rules) had a positive effect and allowed auction participants to accept the offer this year in accordance with paragraph 56-1.

A clear example of the changes introduced to the RES Rules was the results of auctions for the selection of HPP projects, held on November 9 this year with a total installed capacity of 20 MW. In accordance with paragraph 56-1 of the RES Rules, two auction participants accepted the offer at the price of 13.48 tg/kWh (without VAT), and therefore the price range of the auction was from 13.48 to 15.20 tg/kWh (without VAT). The introduction of this rule served as an incentive for companies to participate in auctions this year and, in turn, affected the number of winners of auctions for the selection of HPP projects - instead of 6 winners, 8 winners with a total volume of 23 MW were determined.

Based on the results of the auction for the selection of SPP projects held on November 10, 2020 with a total installed capacity of 15 MW, 2 winners out of 5 participants were determined in the amount of 20 MW at auction prices of 14.99 tg/kWh (without VAT) and 15.62 tg/kWh (without VAT).

Based on the results of the WPP type auction held on November 11, 2020 with a total installed capacity of 15 MW, 2 winners out of 5 participants were determined in the amount of 14.95 MW at auction prices of 21.09 tg/kWh (without VAT) and 21.53 tg/kWh (without VAT).

Current year there is a low activity of participants by the type of BioPP according to the auction data. In this regard, the auction for the selection of BioPP projects with a total installed capacity of 10 MW, held on November 23, 2020, was declared invalid in accordance with the condition specified in subparagraph 2) of paragraph 51 of the "Rules for organizing and conducting auctions, including the qualification requirements for auction participants, content and procedure for submitting an application, types of financial security of the application for participation in the auction and conditions for their entry and return, the procedure for summing up and determining the winners" approved by the order of the Minister of Energy of the Republic of Kazakhstan dated December 21, 2017, No. 466, the number of participants registered and admitted to the relevant auctions in the trading system is less than two.

Based on the results of the auction for the type of WPP held on November 24, 2020 with a total installed capacity of 50 MW, the winners were determined 1 winner out of 6 participants in the amount of 50 MW at the auction price of 15.9 tg/kWh (without VAT).

According to the results of the auction for the type of HPP held on November 25, 2020 in Kazakhstan, the auction for the selection of RES projects without documentation was completed. These auctions this year ended with the selection of projects for hydroelectric power plants with a total installed capacity of 100 MW. Auction was declared invalid in accordance with the condition specified in subparagraph 2) of paragraph 51 of the "Rules for organizing and conducting auctions, including the qualification requirements for auction participants, content and procedure for submitting an application, types of financial security of the application for participation in the auction and conditions for their entry and return, the procedure for summing up and determining the winners" approved by the order of the Minister of Energy of the Republic of Kazakhstan dated December 21, 2017, No. 466, the number of participants registered and admitted to the relevant auctions in the trading system is less than two.

During the auction without documentation, held in November 2020, representatives of the Ministry of Energy of the Republic of Kazakhstan and ALE "KazEnergy", ALE "KEA", USAID and the European Bank for Reconstruction and Development participated 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".

In Kazakhstan, auctions for the selection of RES projects without documentation were held in the conditions of the COVID-19 epidemiological situation. Regardless of the situation, there was interest from potential investors, which is confirmed by the increase in the number of auction participants. In compare with the auctions of 2019, this year there was an increase in participants in auctions without documentation by 7.5%.

We would like to express our gratitude to everyone who participated in the auctions. We wish you successful implementation of your projects and hope for our further productive cooperation. We invite all participants of the 2020 auctions who did not become winners to participate in the 2021 auctions.

We also want to express our gratitude to the Ministry of energy of the Republic of Kazakhstan, JSC NC "Kazakh Invest", LLP "FSC RE", the UNDP and USAID programs for their assistance in organizing the auction in 2020.

On December 8 and 10, 2020, we are waiting for auctions with documentation for the type of SPP 20 MW each. We invite all investors to participate in these auctions.

Best regards, JSC "KOREM".