Kazakh government to support investors on alternative energy projects

Business Materials 26 April 2018 10:52 (UTC +04:00)

Baku, Azerbaijan, April 26

By Ali Mustafayev – Trend:

Government of Kazakhstan will support the investors, engaged in renewable energy projects of the country, the Minister of Energy of Kazakhstan Kanat Bozumbayev said at a press conference, Kazakh media outlets reported.

"The current system of state support has been developed in the Law "On Support for the Use of Renewable Energy Sources (RES) ". The mechanism of fixed tariffs at the initial stage of renewable energy development allowed to quickly launch the renewable energy market and launch several types of renewable energy sources, including wind, solar and hydro power plant, for the production of electrical energy. As of today, there are 58 operating renewable energy objects with a total capacity of 343 megawatts in Kazakhstan," the minister said during a conference in Astana.

He added that the mentioned tariffs will be indexed annually, taking into account the exchange rate difference of the national currency to the US dollar, and inflation.

"The law also specifies that renewable energy will be a priority in the transmission of electricity through networks, and provides support for the allocation of land. We will hold auctions transparently on the electronic platform, which will allow the participants to offer their electricity tariffs during the three-hour trading session, and win the projects, offering the lowest tariff and sign a contract," said Bozumbayev.

The minister added that the share of renewable and alternative energy sources in Kazakhstan is planned to be increased to 50 percent by 2050.

"At the same time, we understand that in the medium term, we can make only the first steps, increasing the share of renewable energy in the total output of the country to 3 percent in the next three years," he said.

Presently the share of renewable energy in Kazakhstan’s energy market amounts to 1.1 percent.