Who will build new hydropower plants in Kazakhstan

This week, regular auctions for the selection of HPP projects were held in Kazakhstan (the total installed capacity was supposed to be 350 MW). At auctions, the winner is the company that will offer to build the facility at the lowest tariff for the electricity generated by it. All projects that go through auctions are built not at the expense of the state budget, but at the expense of the investors themselves. The applicant companies for the construction of the HPP participate in auctions with their land plots where it is planned to build a station.

Auction on November 12th

According to the results of the auction held on November 12 for the selection of projects for the construction of hydroelectric power plants (HPPs) with a total installed capacity of 100 MW, the companies that offered electricity tariffs close to the maximum won, according to the organizer of the auction, KOREM company.

“On November 12, 2024, auctions were held to select projects for the construction of hydroelectric power plants for all zones of the Unified Electric Power System of the Republic of Kazakhstan (with the exception of the Tentek River) with a total installed capacity of 100 MW… The starting maximum auction price was 41.23 tenge/kWh (excluding VAT). There is a decrease in the price range of applications from 41.23 to 40.93 tenge / kWh (excluding VAT),” the published message says.

In particular, four companies were admitted to participate in the auction, which submitted 10 price offers during the trading session. The total declared amount of capacity from the participants amounted to 101 MW, therefore, the amount of installed capacity selection at the auction was increased to 101 MW. Thus, all the applicant companies became winners at the auction, having received the right to build a hydroelectric power station at an indicator of the cost of generated electricity close to the maximum marginal tariff.

In particular, according to the results of the auction, Baskan Irrigation registered in Almaty (electricity generation by hydroelectric power plants) will build a hydroelectric power plant with a capacity of 30 MW at a price of 41.22 tenge per kWh (excluding VAT), which is only one tiyn lower than the starting price. All other companies participating in the auction received less profitable contracts.

Basket Irrigation is owned by EnergyBridge Ltd, a private company registered in the Astana International Financial Center (AIFC). (the activities of holding companies and the production of electricity by hydroelectric power plants), which in turn is owned by the private company PowerBridge Limited, Kairat Orazbekov and Alain Baigazin. The PowerBridge Limited registered in the AIFC (other financial services, financing in various sectors of the economy, investment activities) is owned by the private company KAZ Minerals Holding Limited registered in the AIFC (activities of holding companies) and Alain Baigazin. KAZ Minerals Holding Limited is owned by KAZ Minerals International DMCC registered in the UAE (Dubai). Dubai KAZ Minerals International DMCC belongs to Kazakhstan Trianon Limited, the ultimate co-owners of which are Vladimir Kim and Oleg Novachuk. 63.5% of the KAZ Minerals copper group belongs to entrepreneur Vladimir Kim, who ranks fourth in the list of the richest Kazakhstanis, according to Forbes, with a fortune of $3.6 billion. 36.5% of KAZ Minerals is owned by Oleg Novachuk, who ranks 34th in the list of the richest Kazakhstanis, according to Forbes, with a fortune of $265 million.

According to the results of the auction, the winner was also the company “Korinskaya HPP-2” registered in the Zhetysu region with a hydroelectric power station project with an installed capacity of 18.5 MW and an auction price of 40.93 tenge per kWh. The same company won another lot – a hydroelectric power plant with a capacity of 26 MW at a price of 40.99 tenge per kWh. “Korinskaya HPP-2” (type of activity – electricity generation by hydroelectric power plants) belongs to Energia Zhetysu (activities of other parent companies), owned by Valentina Komarova, Evgeny Nemytov, Vadim Nemytov, Elena Viktorovna Sycheva, Elena Valeryevna Sycheva and Zhanna Sailibekova.

Another winner was KALZHYR RIVER ENERGY registered in Ust-Kamenogorsk with a 16 MW HPP project and a tariff of 40.94 tenge per kWh. KALZHYR RIVER ENERGY is owned by a private company Verum Holding Ltd registered in the Astana International Financial Center (AIFC). (activities of holding companies) and Birzhan Mautzhanov. Verum Holding Ltd. Owned by the UAE-registered VERUM-FZCO.

In turn, Cascade NRG will build a 10.5 MW HPP at a price of 41 tenge per kWh. Cascade NRG, registered in the Turkestan region (production of electricity by solar power plants, production of electrical distribution and regulatory equipment, other retail trade outside stores) is owned by Eskeldinskaya HPP (its owners are listed below), Aziz Mukhtasimov, Nikolai Kim and Asem Zhilkibayeva.

Auction on November 11

On November 11, tenders were held for the construction of hydroelectric power plants with a total capacity of 200 MW. Nine companies submitted 10 proposals for 220.9 MW, so the total capacity was increased to this level. During the auction, the price range of applications decreased from a maximum of 41.23 tenge to 37 tenge per kWh excluding VAT.

Baskan Irrigation was among the winners again – the company will build a hydroelectric power station with a capacity of 30 MW at a price of 37.99 tenge per kWh. This is again one of the highest tariffs.

Among the winners was also “Korinskaya HPP-2”, which received the right to build a hydroelectric power station at 18.5 MW at 37 tenge per kWh and another HPP with a capacity of 26 MW at 37.49 tenge per kWh.

The company “Hydropower” registered in Almaty (electricity generation by hydroelectric power plants) will build a hydroelectric power station with a capacity of 18.2 MW at a price of 37.01 tenge per kWh. The sole owner of the company is Bayan Baybolatova.

ADM Energy, registered in Almaty (construction of power transmission lines and telecommunications), won the right to build a hydroelectric power station with a capacity of 12 MW at 37.05 tenge per kWh. The sole owner of the company is Dimash Alishpanov.

The Eskeldinskaya HPP, registered in the region of Zhetysu (electricity generation by hydroelectric power plants), will build a hydroelectric power station with a capacity of 23.2 MW at 37.3 tenge per kWh. The owners of the company are Sergey Tsoi, Almas Zhangasinov, Aibek Umbetalin, Asem Zhilkibaeva and Aziz Mukhtasimov.

The company “Kalzhyrgidro” registered in Almaty (production of electricity by hydroelectric power plants) received the right to build a hydroelectric power station with a capacity of 19 MW at 37.35 tenge per kWh. Its participants are the Dutch Stream Energy Holdings B.V. and Yerzhan Adilov.

Zhetysu “National Energy Company “Zharyk Energy” (transmission of electricity), registered in the region, will build a hydroelectric power station with a capacity of 10.5 MW at 37.4 tenge per kWh. Its sole owner is Sanzhar Arystanbekuly.

Registered in the region Zhetysu “BOROHUDZIR Hydroelectric power station” (electricity generation by solar power plants) will build a hydroelectric power station with a capacity of 10.5 MW at 37.8 tenge per kWh. Its co-owners are Sergey Tsoi and Almas Zhangasinov, who are co-owners of Eskeldinskaya HPP.

The consortium of KOKSU HYDRO and Qamqor Energy will be engaged in the construction of a HPP with a capacity of 53 MW at a price of 41.21 tenge per kWh. KOKSU HYDRO registered in Almaty (other construction works requiring special qualifications) is owned by Baurzhan Ospanov. Ruslan Zhapsarbayev owns the Qamqor Energy company registered in the Zhetysu region (electricity sales), the Kursiv newspaper reports.

Auction on November 13

On November 13, 2024, RES auctions were held for all zones of the UES of the Republic of Kazakhstan (with the exception of R.Tentek) for the selection of hydropower projects with a total installed capacity of 30 MW.

4 companies were admitted to participate in the auction, 10 price offers were submitted by the participants during the trading session. The declared total capacity from the auction participants amounted to 37.9 MW.

The maximum auction price during the auction for the selection of HPP projects in 2024 was 41.23 tenge/kWh (excluding VAT). The decrease in the price range of applications was from 41.23 to 10 tenge/kWh (excluding VAT).

According to the results of the auction, the following companies were identified as winners:

• LLP “DALA SOLAR” the installed capacity of the project is 1 MW, the auction price is 10 tenge/kWh (excluding VAT);
• LLP “DALA SOLAR” installed capacity of the project 1 MW, auction price 28.8 tenge/kWh (excluding VAT);
• Myrzashol Kus LLP installed capacity of the project is 2 MW, auction price is 32.5 tenge/kWh (excluding VAT);
• Azhur LLP installed capacity of the project is 2 MW, auction price is 33.95 tenge/kWh (excluding VAT);
• LLP “DALA SOLAR” installed capacity of the project 1 MW, auction price 81 tenge/kWh (excluding VAT);
• LLP “Sary Aigyr-Kuat” installed capacity of the project is 7 MW, auction price is 35 tenge/kWh (excluding VAT);
• Koksu Kuat LLP installed capacity of the project is 2 MW, auction price is 35.99 tenge/kWh (excluding VAT);
• LLP “VES Tolkyn” installed capacity of the project is 5 MW, auction price is 40.5 tenge/kWh (excluding VAT).

In order to comply with the requirements of the Rules for Organizing and Conducting auctions, representatives of the Ministry of Energy of the Republic of Kazakhstan and USAID participated as observers.

Auction on November 14

On November 14, 2024, RES auctions were held for all zones of the UES of the Republic of Kazakhstan (with the exception of R.Tentek) for the selection of projects for the construction of hydroelectric power plants with a total installed capacity of 20 MW.

5 companies were admitted to participate in the auction, 11 price offers were submitted by the participants during the trading session. The declared total capacity from the auction participants amounted to 23.23 MW.

The maximum auction price during the auction for the selection of HPP projects in 2024 was 41.23 tenge/kWh (excluding VAT). The decrease in the price range of applications was from 41.23 to 38 tenge/kWh (excluding VAT).

The winners of the auction:

• Smart ReEnergy LLP installed project capacity of 1 MW, auction price 38 tenge/kWh (excluding VAT);
• Koksu Kuat LLP installed capacity of the project 4.2 MW, auction price 39.99 tenge/kWh (excluding VAT);
• LLP “Cascade of Karatal HPPS” installed capacity of the project is 9.9 MW, auction price 40 tenge/kWh (excluding VAT);
• Smart Energy LLP installed capacity of the project is 1 MW, auction price is 40.01 tenge/kWh (excluding VAT);
• Electrical Energy LLP installed capacity of the project is 1 MW, auction price 41.17 tenge/kWh (excluding VAT);
• Turan Energy LLP installed capacity of the project is 2.2 MW, auction price is 41.18 tenge/kWh (excluding VAT).

In order to comply with the requirements of the Rules for organizing and conducting auction bidding, representatives of the Ministry of Energy of the Republic of Kazakhstan, JSC “Institute for Development of Electric Power Industry and Energy Conservation”, USAID and AIFC participated as observers.

The register of winners of RES auctions can be found on the official Internet resource of the organizer of the auction: https://vie.korem.kz/rus/analitika/restr_pobed/