Kazakhstan is set to increase the share of renewable energy to 6% by 2025, Kazakh Energy Minister Nurlan Nogayev told a government session on Tuesday
The minister listed the goals on the share of renewables in the country’s electricity generation, as follows: 6% by 2025, 10% by 2030, and at least 50% by 2050. According to him, the installed capacity of renewable energy facilities have grown 10fold in the past six years from 178MW in 2014 to 1,635MW in 2020.
As of today, there are 116 facilities generating energy using renewable energy sources with the overall installed capacity of 1,685MW. Electricity generated from renewables stood at 381.1bn kWh in 2020. In 2021, there are plans to put into operation 23 renewable energy facilities with the total capacity of 381.1MW.
As the Minister of Energy said during the Government meeting, international auctions in electronic format with a total capacity of 1.5 GW were held for renewable energy projects in 2018 - 2020.
For 3 years, 25 auctions were successfully held. The auction was attended by 172 companies from 12 countries, such as: Kazakhstan, China, Russia, Turkey, Germany, France, Bulgaria, Italy, the United Arab Emirates, the Netherlands, Malaysia, Spain.
The auction system made it possible to achieve a significant reduction in prices for "green" energy. The maximum reduction in tariffs for individual projects was 64% for solar power plants, 30% for wind power plants and 19% for hydroelectric power plants.
As a result of the auction, 58 companies signed contracts with the single buyer of renewable energy (Settlement and Financial Center) for 15 years for a total capacity of 1 219 MW. Since the operation of the Settlement and Financial Center, about 626 billion tenge has been attracted to the renewable energy sector and about 81 billion tenge in taxes will be paid from the constructed facilities.
The Minister noted that in recent years, work has been carried out to attract investment to the sector by signing a number of agreements and memorandums with international financial institutions and organizations in the amount of about 240 billion tenge (or 613 million US dollars).
Investors from 10 countries of the world, as well as major financial organizations such as the EBRD, the ADB, the Asian Infrastructure Investment Bank, and the DBK are currently working in the "green" energy sector. Also, major oil companies, such as Eni, Total-Iren, which have already implemented projects in Kazakhstan and have plans for further development of renewable energy projects, came as investors.