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  • Kazakhstan seeks price decrease for renewable energy

Kazakhstan seeks price decrease for renewable energy

5 July, 2019 15:40
The Law “On Support for the Use of Renewable Energy Sources” was inked in Kazakhstan 10 years ago, in July 2009. Since then the Kazakh Government has been working jointly with international organizations to gradually rise the share of renewable energy to strike a balance in the traditional energy dominant market and to make RES tariffs cheaper. Now 700 MW of renewable energy is generated by 74 facilities around the country.

Energy Vice Minister of Kazakhstan Sungat Yessimkhanov accentuated on the indicators of renewable energy development.

“Being the new area of energy, there are clear indicators for clear understanding in what way renewable energy needs to be developed - 3% by 2020, 10% by 2030”, he said.

Yessimkhanov pointed out the active progress in renewable energy development over the last couple of years and expressed hope that the downward trend in tariffs on renewable energy would facilitate to its further development.

The Vice Minister said due to the low prices for traditional energy sources, Kazakhstan has its own features to develop renewable energy.

A 63 per cent rise has been spotted in renewable energy facilities’ output. As of today, 700 MW of energy is generated by 74 renewable energy facilities in Kazakhstan.

Deputy Governor of Akmola region Marat Igaliyev talked of the Burabay resort zone’s role in attracting tourists, underlining that the resort zone has become number one for CIS countries.

“Since the signing of the law on renewable energy sources, 74 projects have been implemented, including 2 in Akmola region, valued 20 billion tenge”, Deputy Governor said.

Other 6 projects are under implementation, including 5 wind and 1 solar stations for 153 billion tenge.

Aida Sitdikova, Director of the Energy Department, the European Bank for Reconstruction and Development, shared the Bank’s vision on its role in supporting and promoting renewable energy sources and solar energy in Kazakhstan.

She underlines that as of today the Bank and other financial partners have invested over 300 million euros largely in solar generation of Kazakhstan.

“The main thing is that the Kazakh Government continues to gradually work in terms of decarbonization of the Kazakh economy. Kazakhstan has turned into the regional leader in solar energy development and the leader not only in the amount of watt built and financed so far but also in developing the certain technologies, expertise and skills, in particular in building solar, wind and hydro energy”, Aida Sitdikova told.

The role of investors and bold developers, pioneers in developing the renewable energy sector was outlined.

“We forecast that renewable energy will be the driver contributing to renewable energy tariffs fall in the country as other countries see the lower tariffs on renewable energy rather than the tariffs on traditional energy”, the EBRD Energy Department Director stated.

Nurlan Kapenov, the Board Chairman, the Kazakhstan Solar Energy Association, shared on the intention to hold even bigger event next year “Solar Fest Qazaqstan 2020”.

“The charter will be elaborated and adopted – an address to the Government with the issues facing the green energy market. They have to be resolved. Nevertheless, the Government fully supports us and the Energy Ministry is open for dialogue as does the Government. The international financial institutions willing to take active part in our events offer recommendations, wishes”, Nurlan Kapenov said.

He also expressed the willingness of the Kazakhstan Solar Energy Association to muster after one year since the adoption of the charter to assess the one-year work, results.

On the sidelines of the event, the Association put forward a proposal to Kazakh Prime Minister Askar Mamin to celebrate the 4th of July as RES Worker Day.

The Kazakh resort zone of Borovoe is holding the first ever business festival “Solar Fest Qazaqstan” on 4-5 July to mark 10 years since the law to support the use of renewable energy sources was adopted. The event brings together over 300 people from different parts of the world.

Adlet Seilkhanov