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Kazakhstan sets 15-year tariffs for renewable energy 10 апреля 2014, 15:26

Tariffs for renewable energy sources (RES) in Kazakhstan will be approved for 15 years.
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Minister Nurlan Kapparov in the program "Professional Conversation" Minister Nurlan Kapparov in the program "Professional Conversation"

Forms and ways of state support for development of renewable energy use in Kazakhstan have been discussed during Zhanat Yertlesova’s program Professional Conversation on STV Channel with the Minister of Environment and Water Resources of Kazakhstan Nurlan Kapparov, Tengrinews reports.

The Minister reminded that the previous Law on Supporting the Use of Renewable Energy Sources, adopted in 2009, did not envisage fixed rates or provide any guarantees of return on investments. Therefore, the whole system was not working, Mr. Kapparov said.

Several small renewable energy projects that produced 15-20 megawatts of electricity were implemented in Kazakhstan. However, there were no major investments as there no clear rules of the game were set, the Minister shared. Now, with the changes introduced in the Law, fixed rates can be set for a period of fifteen years for each type of renewable energy sources and in accordance with international practices.

Kazakhstan plans to set fixed tariffs for wind stations at 19 tenge per 1 kWh, for solar plants at 29 tenge/1kWh and for biogas plants at 27 tenge/1kWh. These tariffs are higher than those applied to traditional energy sources in Kazakhstan, for example the rates for coal-fueled power plants are at 6.5 to 7 tenge per 1 kWh. "We will introduce limits for renewable energy projects by type for energy sources and location. This will allow to streamline the process of emergence of new generating facilities," Minister Kapparov said.

Mr. Kapparov stressed that during placement of renewable energy facilities priority would be given to the regions experiencing electricity shortages or prone to experiencing them in future.

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