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The auction for RES on the construction of a BioPP was declared invalid
The auction for the selection of projects for the construction of a BioPP with a total installed capacity of 10 MW, held on November 30, 2023, was declared invalid.
According to the results of the trading session, 3 companies were allowed to participate in the auction. The declared total volume of capacity from the auction participants amounted to 10.6 MW, while the total amount of financial support in an equivalent ratio did not exceed 130% of the declared volume. In this regard, guided by subparagraph 1) paragraph 51 of the Rules for the organization and Conduct of auction bidding (when the total volume of installed capacity of applications for participation in auction auctions for sale is less than 130%), the auction was declared invalid.
According to the results of the auction, the winner has not been determined.
In order to comply with the requirements of the Rules for Organizing and conducting auctions, representatives of ALE «KAZENERGY», ALE «Kazakhstan Association of Regional Environmental Initiatives «ECOJER» and UNDP participated as observers.
It should be noted that according to the auction schedule for 2023, approved by the Order of the Minister of Energy of the Republic of Kazakhstan No. 187 dated May 23, 2023, the total installed capacity of auctions for the selection of RES projects in 2023 amounted to 860 MW, of which: SPP - 100 MW, WPP - 500 MW, HPP - 250 MW, BioPP - 10 MW.
For the auctions of 2023 , the following maximum starting auction prices were set:
HPP – 41.23 tg/kWh;
WPP – 22.68 tg/kWh;
SPP – 34.61 tg/kWh;
BioPP – 32.23 tg/kWh.
A total of 16 auctions were planned: 3 – for small projects, 13 – on major projects. Auctions were held in the normal mode, while 2 auctions were declared invalid due to insufficient number of participants (large HPP, small BioPP), of which, the auction for large HPP was held repeatedly and was recognized as having taken place.
According to the results of the auction for RES in 2023, the maximum reduction in the auction price for projects was: SPP – 59.86%, HPP – 57.5%, WPP – 54.23%, BioES – declared invalid. In general, this is a good result, confirming that auctions provide a reduction in prices and allow determining market prices for electric energy from RES facilities.
