Kazakhstan, located at the heart of the Eurasian continent, is the world’s largest landlocked country. In September 2019, China and Kazakhstan formed a permanent, comprehensive strategic partnership, boosting high-level bilateral ties and unlocking significant investment potential. The country boasts abundant renewable energy resources, particularly wind and solar power. Its Ministry of Energy introduced a competitive auction scheme for renewable energy projects in 2018 and has since issued annual project schedules that enable foreign businesses to secure development rights through a lowest-price winning mechanism.
2025 auction schedule
Wang Jihong
Senior Counsel
Zhong Lun Law Firm
On 10 February 2025, Kazakhstan’s Ministry of Energy officially approved its 2025 auction schedule for renewable energy projects. A total of 1,810MW of renewable energy capacity will be allocated through the auction of 13 projects, covering multiple sectors: four wind power projects (one featuring energy storage); four solar projects; four hydropower projects; and one biomass project. Auctions will be conducted in phases, with the first round of registration commencing on 2 April 2025 and the final round closing on 4 November 2025. The 2025 schedule imposes quotation caps, specifically KZT22.68/kWh (KZT0.044/kWh) for wind power projects, solar PV at KZT34.61kWh, hydropower at KZT41.23/kWh and biomass generation at KZT32.23/kWh.
Pre-qualification conditions
On 11 December 2024, Kazakhstan’s Ministry of Energy issued Order No. 454, revising the prequalification requirements for applicants in renewable energy projects. The new regulations, effective from 16 February 2025, classify applicants into two categories based on the project scale: either with a capacity of not more than 499MW; or above.
Foreign entities are eligible for projects totalling 499MW and below. Applicants must provide the following prequalification documents:
-
- A certified copy of the company’s articles of association;
- A certified copy of the national registration certificate for the legal entity;
- A certified copy of the appointment letter for the chief executive officer;
- A letter of authorisation (in the case the designated representative is not the chief executive officer);
- Basic information of the legal entity, including email address, telephone number, bank details and registered address;
- A financial guarantee confirmation letter;
- A certified copy of the grid connection technical specification approved and issued under the Grid Code, or alternatively a selection scheme of grid connection points as specified in the auction terms;
- A certified copy of the land title deed obtained under the Land Code, or alternatively a selection scheme of land parcels as specified in the auction terms;
- A certified copy of the grid operator’s approval for distribution schemes with a declared capacity of 5MW or above, issued in accordance with the Grid Code, or alternatively a selection scheme of grid connection points as specified in the auction terms; and
- A confirmation letter on the auction documents.
Chen Haobi
Associate
Zhong Lun Law Firm
Foreign applicants may submit legally equivalent documents from their home jurisdiction, with notarised Kazakh or Russian translations.
Renewable energy projects exceeding 499MW impose stricter requirements on applicants. Apart from the above-mentioned (1) to (6) stipulations, applicants must demonstrate experience in investing in, constructing and commissioning projects with an installed capacity of 100MW or more in Kazakhstan.
At least 51% of its ultimate beneficial owners’ shares must be held by citizens of the Republic of Kazakhstan and/or Kazakhstani legal entities without any foreign participation, meaning that these projects are limited to entities controlled by Kazakhstani citizens.
The successful applicant must also concurrently develop and commission an energy storage system at 30% of the project’s capacity, capable of delivering continuous power for two hours. The power supply must be maintained throughout the duration of the power purchase agreement, while the rights and obligations under the agreement are non-transferable.
Auction process
By order of the minister of energy No. 280, dated 7 August 2017, the joint-stock company Kazakhstan Electricity and Power Market Operator (KOREM) is designated as the auction organiser. Auctions will be conducted via the KOREM’s e-commerce platform, with the specific steps detailed below:
-
- Applicants must first register on the KOREM’s trading system, sign the auction organisation and service agreement, and remit the service fee to the organiser;
- Applicants then submit prequalification documents online to complete their registration;
- The KOREM reviews and approves applicants’ documentation and grants them eligibility to the auction;
- On auction day, the KOREM opens its auction platform during designated hours to receive and process submissions;
- The successful applicant will finalise a power purchase agreement, based on the submitted quotation, with the Settlement and Financial Centre for Support of Renewable Energy Sources of Kazakhstan (FSC), with a performance guarantee submitted to the FSC.
- Within five working days of the KOREM’s notification, Kazakhstan’s Ministry of Energy will include the successful applicant in the list of approved renewable energy facility locations and energy production entities.
Investors in Kazakhstan’s renewable energy project auctions must follow the specified process and meet the required prequalifications. As the auction rules are continually updated, prospective applicants for 2025 or subsequent rounds should closely monitor the Ministry of Energy’s latest policies, stay abreast of any changes, and complete registration and document preparation on the trading system in advance to respond promptly when the registration portal opens.
Wang Jihong is a senior counsel and Chen Haobi is an associate at Zhong Lun Law Firm.
Zhong Lun Law Firm
22-31/F, South Tower of CP Center
20 Jin He East Avenue
Beijing 100020, China
Tel: +86 10 5957 2288
Fax:+86 10 6568 1022
E-mail: wangjihong@zhonglun.com
chenhaobi@zhonglun.com
www.zhonglun.com