Kazakhstan’s power market operator JSC KOREM has announced the culmination of auctions for renewable energy projects. Auction for solar projects has resulted in the lowest tariff of KZT14.58 (~$0.034)/kWh.

According to the auction schedule approved by the Republic of Kazakhstan’s Ministry of Energy, auctions were held for a total capacity of 250 MW – wind (65 MW), solar (55 MW), Hydropower (120 MW), and biogas (10 MW).

In the auction held, 16 renewable projects were selected with a total installed capacity of 147.95 MW, including 64.95 MW of wind power projects, 60 MW of solar power projects, and 23 MW of small hydropower projects.

The solar projects in the latest auction for 20 MW held on December 8^th were awarded to the Russian heterojunction solar cell and module manufacturer Hevel Group. Hevel made an offer of KZT16.96 (~$0.040)/kWh and KZT14.58 (~$0.034)/kWh, making it the lowest bid in a solar auction in Kazakhstan’s renewable energy timeline. Hevel also won the bid to develop another 20 MW of solar quoting a tariff of KZT16.96 (~$0.040)/kWh.

The 40 MW solar projects won by the Hevel Group controlled by Ream Management will become online in 2022. The lowest bid secured new contracts increasing Hevel Group’s portfolio in Kazakhstan to 288 MW of solar projects. Hevel’s operational solar energy portfolio in Kazakhstan consists of eight projects with 248 MW capacity. The company’s largest PV project, Nura (100 MW), began commercial operation in May this year.

In all, 27 companies from four countries – Kazakhstan, Russia, the Netherlands, and Germany took part in the auctions.

Last year, the European Bank for Reconstruction and Development (EBRD) had approved ~$329 million (₹23.6 billion) for the Kazakhstan Renewables Framework to support its drive as a regional leader to promote renewable energy. Previously, EBRD partnered with the United Nations’ Global Climate Fund (GCF) for the construction of a new 30 MW solar power project at Zhangiz-tobe, located in the country’s eastern region. The financing package approved by the EBRD included a local currency loan of up to $11.7 million and a loan of $5 million from the GCF. EBRD also financed a 50 MW solar power project in southern Kazakhstan with a loan of up to $40.4 million and another $10 million from the GCF.

To date, the EBRD has invested over ~$9.1 billion (~₹654 billion) through 262 projects in the economy of Kazakhstan. The EBRD is the largest international investor in Kazakhstan’s economy outside of the oil and gas sectors and has an extensive presence in the country.

Recently, two solar projects – a 75 MW project ‘M-KAT’ in the country’s Zhambyl region and a 20 MW project Nomad in the Kyzylorda region, owned by Total Eren, went online.