Company news

On November 20, 2024, auctions for RES for the construction of BioPP for all zones of the Unified Electric Power System of the Republic of Kazakhstan with a total installed capacity of 10 MW were held.

According to the results of the trading session, 3 companies were allowed to participate in the auction, and 5 price offers were submitted by the participants during the trading session. The declared total capacity from the auction participants was 12.4 MW.

The starting maximum auction price during the auction for the selection of BioPP projects was 32.23 tenge/kWh (excluding VAT).

During the trading session, the price range of bids received from auction participants ranged from 32.23 to 32.14 tenge/kWh (excluding VAT).

In accordance with paragraph 55 of the Rules for the Organization and Conduct of Auctions, the volume of installed capacity selection has been increased from 10 to 11.9 MW.

According to the results of the auction, the following companies were identified as winners:

• Eco Energy Plant LLP the installed capacity of the project is 4.9 MW, the auction price is 32.14 tg/kWh (without VAT);
• Future M-Gas (FMG) LLP, the installed capacity of the project is 7 MW, the auction price is 32.17 tg/kWh (excluding VAT).

In order to comply with the requirements of the Rules for organizing and conducting auctions, representatives of the Kazakhstan’s Energy Ministry, the Kazakhstan Association of Regional Environmental Initiatives EcoJer, the Asian Development Bank and USAID participated as observers.

According to the auction schedule for 2024, approved by the Order of the Minister of Energy of the Republic of Kazakhstan No. 105 dated March 7, 2024, the total installed capacity for the selection of RES projects amounted to 1,270 MW:

• Solar Power Plants (SPP) – 160 MW;
• Wind Power Plants (WPP) – 700 MW;
• Hydroelectric Power Plants (HPP) – 400 MW;
• Bioenergy stations (BioPP) – 10 MW.

The starting auction prices for 2024 were as follows:

• SPP – 34.61 tg/kWh;
• WPP – 22.68 tg/kWh;
• HPP – 41.23 tg/kWh;
• BioPP – 32.23 tg/kWh.

There were 18 auctions planned: 6 for small projects, 12 for large ones. Auctions were held normally in the presence of observers.

According to the results of the auction in 2024, the maximum reduction in the auction price was:

• SPP – 58.91%;
• WPP – 69.6%;
• HPP – 80.6%;
• BioPP – 0.3%.

These results confirm the effectiveness of the auction system in reducing prices and setting market tariffs for electricity from RES facilities.

It is important to note that the entire planned capacity for the construction of new RES projects was successfully distributed at auction this year.