It was declared by Director General of the Association of Renewable Energy of Kazakhstan Arman Kashkinbekov to the LS economic periodical
“On paper, that is the Ministry of Energy list according to the submitted developers’ bids, the plan of 3% is being fulfilled. But actually and practically, we cannot speak about such indices. It is because the basic problems of the industry have not been solved yet. These are: steadiness of the regulating law concerning development of efficient rules in transition to auction system, devaluation risk for the national currency (KZT), and lack of large-scale financing in KZT and support of small-scale power generation,” he clarified.
The Association CEO added that Kazakhstan is the world’s ninth country in area possessing immense potential in renewable energy.
“We have potential in solar, wind, hydro and bio energy. And in the XXI century, they must already start operating in the country,” marked Kashkinbaev.
According to him, investments from private companies – both foreign and national ones - are needed for installation of RES.
“This will make the industry more long-term sustainable and economically efficient. For it, the steps proposed by our Association after EXPO should be adopted,” clarified Kashkinbaev.
In the speaker’s opinion, an independent agency for ‘green’ energy should be established which would start pursuing an independent policy in the field, and also elaborate the state program of the industry development.
“The working plan is needed where the key issues of the industry and suggested ways of solution thereof would be designated by blocks, with the responsible agencies and national companies. The issues of investment attraction must also be solved,” explained Kashkinbaev.
Meanwhile, according to the Ministry of Energy information, an expert working group was already summoned by results of EXPO-2017 consisting of businessmen, public officials and officers of other industries. The group selected 105 projects from 24 pavilions of various countries in such lines as energy and nuclear projects, ecology, and oil and gas; they possess sufficient technological and economic potential to be implemented in Kazakhstan. By now, more scrupulous studies of the ideas are being conducted before implementation thereof in the country.
It was marked at the Ministry of Energy that under the EXPO-2017 Exhibition, various agreements were reached in the field of RES development in Kazakhstan. Thus, a Memorandum of Understanding and Support of RES Projects was signed by EBRD and the Ministry of Energy on allotment of US$ 200 M for RES projects in Kazakhstan with raising of additional US$ 480 M from other financial organizations.
Implementation of projects in wind power generation is also planned with the ENI and General Electric companies. Besides, EBRD financing was received for the project of construction of the 50 MW capacity second phase of the ‘Burnoye Solar’ power station in Zhambyl Region. By similar principle, the agreement was signed on lending for construction of the 50 MW ‘Baikonur Solar’ station and 100 MW ‘Astana EXPO-2017’ wind power station in Akmola Region. The Chinese Sany Group will also invest into wind energy: the Group together with ‘Zheruyik Energo’ will construct a wind farm of the 50 MW capacity in Shelek Corridor of Enbekshikazakh District of Almaty Region.
Besides, Kazakhstan managed to involve the biggest Saudi Arabian ACWA Power Company in RES projects implementation in the country.
In their turn, the National Nuclear Center and ITER (International Thermonuclear Experimental Reactor) signed the Agreement of Cooperation. In the meantime, the Austrian Institute of Technology and Finnish Kauko International Group concluded a memorandum of cooperation in ‘green’ technologies. The Administrations of Almaty city, Almaty Region, Extended Liabilities Operator and Association of Kazakhstani Environmental Organizations also agreed to cooperate.
According to Minister of Energy Kanat Bozumbaev, in development of RES in the country the world’s largest companies will be engaged, such as: Aqua Power, Shell, Ani-Agip, General Electric and a Chinese company.
He clarified that despite today’s costliness of solar and wind energy, the prices are gradually going down and the demand grows.
“Take for example, solar energy: the KW/h price was KZT 34, it is more than US 10 cents. We consider it expensive. It is clear that prime cost of this energy comprises the necessity of investment payback and depreciation of equipment which is not produced in Kazakhstan in sufficient volumes. Plus the cost of the facilities involved in such projects. Nevertheless, we can see that auctions have been held in the recent 12 or 18 months in Chile, Mexico, the United Arab Emirates, Saudi Arabia and a number of other countries. The auctions demonstrate that in the result of reverse auctions (suppose, the largest companies participate therein) an average power price amounts to about two cents and a half. In other words, as far back as two years ago, the price amounted to 4 - 5 cents and today it is 2.5 cents; say, at the last auction in Dubai. In the similar fashion, Kazakhstan follows the same path. President has signed amendments to the “Law on Energy” and “Law on Supporting Renewable Energy Sources” where introduction of auction system is provided for,” marked Minister at the conference on energy transformation issues.
He added that Kazakhstan has recognized the importance of transition to ‘green’ economy.
“We take part in global initiatives on climate change problems under Paris Agreement. In pursuance of the Agreement at the national level, our country has set the goal to reduce the emissions volume by 15% as compared with the volume of 1990, by 2030. With support from Green Climate Fund and EBRD, we hope to enhance investment into renewable energy sources and implement the strategy of transition to ‘green’ economy,” concluded Kanat Bozumbaev.