Auction

Law “ON SUPPORT OF RENEWABLE ENERGY SOURCES USE”

DEFINES THE FOLLOWING:

  • Scheme for the purchase and sale of RES electric power with the Accounting and Finance Center
  • Standard form of the 15-year PPA agreement at the auction tariff in the national currency tenge 
  • Standard form of RES facility connection to electric networks

 

BASIC PRINCIPLES OF THE AUCTION:

The main criterion for determining the winners is the lowest price

The auction is held in the UES zones of the Republic of Kazakhstan taking into account technical limits and RES types

Method of application submission for participation in the auction –Online (organized by KOREM)

Frequency of the auction is determined by the Ministry of Energy of the Republic of Kazakhstan

Bank guarantee is required for admission to trading

 

COMPETITION ASSURANCE

  • All participants are allowed for bidding at auction.
  • The auction schedule is published 3 months prior
  • Method of application submission for participation in the auction –Online
  • The volume of applications must be at least 130% of the declared capacity
  • At least two participants in the auction
  • Reservation of network connection points
  • Reservation of land plots

STATE SUPPORT

 

FINANCIAL SUPPORT

Letter of Credit

Financial support is charged:

In case of failure to enter into purchase agreement with  RFC within the prescribed period.

Bank guarantee

Letter of Credit

Monetary funds

Financial support is charged:

  • In case of failure to provide notice about start of construction within 12 months from the date of agreement – 30% of financial support
  • In case of failure to provide commissioning act for SPP (from the date of agreement) – 24 months, WPP – 36 months, HPP – 48 months, -70 % of financial support + Termination of the agreement.

For the first biddings, marginal auction prices are determined at the level of fixed rates approved by the Resolution of the Government of the Republic of Kazakhstan dated June 12, 2014, No. 645.

Marginal auction prices for subsequent biddings are determined based on the results of previous bidding according to maximum price of the winner.