Caspian Energy Journal Caspian European Club
Wednesday, 14 June 2017 11:30

Kazakhstan switches to system of auctions

Kazakhstan switches to system of auctions

“Auctions of renewable sources of energy increased by 4 times over the last decade – from 6 fixed in 2005 up to 67 last year. It led to record-low prices in several countries, including UAE, Morocco and Egypt.  Fixed rates still remain the most prevailing tool of the regulating policy in more than 78 countries.

IRENA cannot offer a concrete policy for a certain country, but the idea is to discuss different mechanisms and measures”, Head of the Staff of the International Renewable Energy Agency (IRENA) Mohammad El-Farnavani noted at the sessions of the ministerial dialogue  “Renewable energy in Central Asia”, Caspian Energy News ( reports with reference to the Ministry of Energy of RK.

“From the next year Kazakhstan will switch to the mechanism of auctions to develop renewable sources of energy. 44 countries of the world are successfully applying an auctions system but not the fixed system of tariffs and we have included into the draft law that the introduction of the auctions system would start in Kazakhstan from the next year. For instance, 1 kWh of solar energy  now costs 34 tenge. It is more than 10 cents. The auction hosted in Abu-Dhabi several months ago fixed 2.4 cents. I understand that the capital price can be different. Solar days can be lower but not by 5 times. Therefore, we have chosen the way of auctions and will follow it very strictly”, Minister of Energy of Kazakhstan Kanat Bozumbayev said.

Addressing the session were also Deputy Chairman of the State Agency for Alternative and Renewable Sources of Energy of Azerbaijan Nurali Yusifbeyli, Deputy Chairman of the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic Azamat Omorov and Managing Director for Energy and Natural Resources of EBRD Nandita Parshad. 

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Person in charge of the newsline: Fidan Isayeva 

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