To make this happen, the country created a better environment to attract major investments into the industry, introducing a 15-year feed-in-tariff (FiT) mechanism. In 2018, the country’s energy ministry launched renewable auctions, making selecting projects and investors more transparent and understandable. At the same time, thanks to the auctions, officials in Nur-Sultan can bet on more efficient technologies and projects that will reduce the impact of renewable energy capacity introduction on end consumers’ tariffs.

Salimzhuarova said that the legal framework for green investments has also improved since the government switched in 2017 from feed-in tariffs, payments for the generation of renewable energy to an auction mechanism meant to foster competition, resulting in better projects and prices. Auctions are held at the KOREM open electronic trade system and the lifespan of an auction tariff is 15 years.

Rtemagicc Renewable Tariffs In Kazakhstan 01 Jpg Jpg

The oil and gas rich country announces prices for renewable energy in its new feed-in tariff program.

Kazakhstan has also adopted at the end of August 2013 a new feed-in tariff law – “On Supporting the Use of Renewable Energy Sources” – that will provide support to renewable energy producers. The EBRD has worked with the Ministry of Industry and New Technologies and the Ministry of Environmental Protection to help develop various aspects of the new legislation, beginning with the model for determining the feed-in tariffs. The cost of the programme is estimated at KZT1,100 bn (€ 5.3bn).