English (UK)
1. Background
Currently, auctions for the allocation of renewable energy (RE) facilities, including solar (SES) and wind (WES) power plants, are conducted in a single stage, which:
- limits access of domestic manufacturers to the RE market;
- reduces the share of local content and multiplier effect in Kazakhstan’s economy;
- creates risks of dependence on foreign suppliers;
- complicates the achievement of sustainable development goals and technological sovereignty of the country.
Meanwhile, clause 129-1 of the Rules for the Activities of Natural Monopoly Entities provides for two-stage procurement procedures aimed at localizing production in Kazakhstan.
2. Proposed Mechanism
- Stage 1 — auction for WES/SES is held among enterprises certified in the domestic manufacturer registry of the Ministry of Industry and Infrastructure Development of Kazakhstan.
- Stage 2 — standard auction (if Stage 1 is not successful).
3. Arguments for Implementation
| No. | Argument | Justification |
|---|---|---|
| 1 | National Interests | Increase the share of Kazakhstani technologies and equipment in the energy sector |
| 2 | Reduced Currency Risks | Reduces dependence on imports and foreign financing |
| 3 | Job Creation | Local projects contribute to employment and regional development |
| 4 | Quality Control and Transparency | Easier to monitor deadlines, quality, and contractual obligations |
| 5 | Alignment with Legislation | Complies with clause 129-1 of the Rules for Natural Monopoly Entities |
| 6 | Compliance with ESG and Just Transition | Supports a fair transition and the national climate agenda |
4. Proposed Amendments
Amend the Rules for the Organization and Conduct of Auction Bidding to include qualification requirements for participants, application content and submission procedures, types of financial guarantees for participation and their terms of deposit and return, as well as procedures for summarizing results and determining winners, approved by Order No. 466 of the Minister of Energy of the Republic of Kazakhstan dated December 21, 2017.