Kazakhstan government presented draft law on alternative energy

Kazakhstan government presented the draft law on alternative energy to deputies. Kazakhstan Vice-Minister of Industry and New Technologies Bakhytzhan Dzhaksaliyev presented the related amendments to the Majilis, Tengrinews.kz reports. “The main concept of our draft law is based on introduction of fixed rates. This are the fixed rates for the electricity produced by renewable energy sources (RES). Introduction of the fixed rates will become a guarantee for return of invested funds and will help clarify the rates for RES,” Vice-Minister said. Self-cost of alternative energy will be calculated for each Kazakhstan’s region and the investors will be offered to take part in the projects, if they agree with the rates and are confident they will get the returns. “The government will set a rate for purchase of power energy from RES. In every certain case the investor will have to estimate construction, technologies, the costs related to exploitation and decide whether this rate is acceptable and profitable for him. If it is then the investor will start implementing these RES projects. By introducing the rates the government guarantees that it will buy the power produced by RES,” Vice-Minister told Majilismen explaining the government strategy on setting rates for RES. According to the government’s draft law, the rate may be increased or decreased every three years. Considering that the cost of production of alternative energy is much higher than that of traditional one, its cost will be made part of the total price and, according to Dzhaksaliyev, will be insignificant for the users. According to Vice-Minister, fixed rate is not only a motivation for investors, but also a protective mechanism for the energy costs at the Kazakhstan market. It motivation part lies in the guarantee of investments return for the whole period of the project’s payback. 450 MW produced by RES per one electrical network is the maximum that Kazakhstan can afford these days. “Actually, these RES should and can work in Kazakhstan in local networks, i.s. for supply of separate villages. Then the problem with energy supply to remote areas will be solved,” he explained. In general, the draft law On amendments to several legislative acts of Kazakhstan on support of the use of renewable energy sources is aimed at development of RES, support of potential investors in implementation of the projects, increase of transparency and understanding and smooth implementation of RES projects. Besides, the initiator of the draft law suggested to amend article 90 of the Land Code, in particular, by adding it with the words “permitting withdrawal of lands for renewable energy sources”. According to Vice-Minister, 19 RES projects have been implemented so far and more feasibility studies are being made.