A new HPP auction will be held in Kazakhstan in November

In November, it is planned to hold an auction for hydroelectric power plants (HPPs) with a total capacity of 350 MW in the Republic of Kazakhstan, chief expert of the Renewable Energy Development Department of the Ministry of Energy Sanzhar Takenov told Kursiv.

“We haven’t had all the auctions this year yet. We are planning to play a hydroelectric power station in November. At the end of the year, the list of winners and estimated dates will already be known.… In November, we will have 350 MW exhibited,” he told Kursiv.

According to him, we are talking about the possibility of building several hydroelectric power plants with a total capacity of 350 MW. These planned facilities are not divided by regions, but traditionally HPPs are being built in the south and east of Kazakhstan. The starting price at the upcoming HPP auctions will be 41.23 tenge per kWh. At the auction in June, companies had to reduce this price to 10-36.5 tenge per kWh excluding VAT in order to win the auction.

The applicant companies for the construction of HPPs participate in auctions with their land plots where it is planned to build a station, while for SES and WPP the land is provided to the winners of auctions after the auction. All projects that go through auctions are built not at the expense of the state budget, but at the expense of the investors themselves. Thus, investors prepare all documentation, including design and estimate documentation (PSA), feasibility study (feasibility study) and so on. After their preparation, the dates when the HPPs can be launched become known.

At RES auctions, the winner is the company that will offer to build the facility at the lowest tariff for the electricity generated by it. According to the representative of the Ministry of Energy, the period between the holding of the HPP auction and the direct launch of the station takes about five years. Thus, the winners of the auctions in 2024 are expected to launch a hydroelectric power station in 2029-2030.

In particular, the companies that won the summer auctions, according to him, are still busy concluding contracts with the Settlement and Financial Center for the Support of Renewable Energy Sources (RFC RES is a single electricity buyer, owned by the State Property and Privatization Committee of the Ministry of Finance). After the company enters into an agreement with the RFC on renewable energy, the Ministry of Energy receives information about the planned launch date of the HPP.

“Because in practice, half of them do not sign contracts with the RFC: someone refuses, someone cannot fulfill the requirements of the contract with the RFC. But at the same time, before the auction, they are aware of what requirements they have,” Takenov said.

According to him, this year it is expected to launch two HPPs with a total capacity of 17.9 MW in Almaty and Zhetysu regions.

“In June, 50 MW were selected. 10 MW, 20 MW, 8 MW. These 350 MW – let’s see how the auctions will be held, how many participants there will be,” the representative of the Ministry of Energy reminded.

Summer auctions for hydroelectric power plants were held with great business interest amid an increase in the starting price. Entrepreneurs have been asking for an increase in the electricity tariff for several years, as they faced difficulties in implementing projects.

    “They have the complexity of the structure itself (construction. – “Italics”) hydroelectric power plants, because someone is building a reservoir, a dam. Mostly up to 35-40 MW (no construction required. – “Italics”) dams, and who is higher – they already need a dam. Those who have above 34-40 MW need a dam,” Takenov said.

According to him, entrepreneurs put pipes with generators to generate electricity or containers into the river stream, from which the water then falls down, twisting the blades.

The Ministry of Energy of the Republic of Kazakhstan has previously developed a plan for the placement of renewable energy facilities. According to it (as specified by “Italics”, both existing and planned facilities are included in the plan), two small hydroelectric power plants with a total capacity of 0.83 MW operate in Almaty. At the same time, a hydroelectric power station with a capacity of 46.9 MW operates on the Bolshaya Almatinka River.

There are five hydroelectric power plants with a total capacity of 66,705 MW operating in the East Kazakhstan region, including the one owned by the LCPP Company in the Ridder city, Turgusun 1 in the Altai district and Zaisanskaya HPP in the Zaisansky district. According to the contracts concluded with a single buyer, according to the results of the auction, it is planned to launch four hydroelectric power plants with a total capacity of 58.3 MW, including a hydroelectric power plant with a capacity of 1.4 MW of Europa Solar in Katon-Karagai district in 2027, a hydroelectric power plant with a capacity of 6.9 MW of FTR-Green-LTD in Zaisan district in 2029, a hydroelectric power plant with a capacity of 50 MW “Turgusun-2” in the Altai region in 2029.

According to the plan, seven HPP projects with a capacity of 64.58 MW are operating in Almaty region, including projects from Kazelectroenergia, Energia Alemi, EC Energy Qazaqstan and Hydro-Power in Enbekshikazakh district, Konayev and Company in Raiymbek district. According to the concluded contracts with a single buyer, according to the results of the auctions, it is planned to implement three HPPs with a total capacity of 38.1 MW, including HPPs with a capacity of 33.1 MW and 2 MW by Zharyk Su LTD and Altyn Hydro in Enbekshikazakh district in 2029-2030, respectively.

“Hydroelectric power station with a capacity of 3 MW of Tolkyn WPP LLP in Zhambyl district in 2024. There are 5 HPP projects with a capacity of 14.68 MW in Zhambyl region, including: LLP “Hydropower Company”, LLP “Remkommstroy”, LLP “Taraz Greenpower Dzhenko” and LLP “FaB stroy” in Merkensky district, LLP “A&T-Energy” in Shusky district,” the Ministry of Energy told Kursiv.

According to the concluded contracts with a single buyer of electric energy, according to the results of the auction in Zhambyl region, it is planned to launch a hydroelectric power station with a total capacity of 19.3 MW, including a hydroelectric power station with a capacity of 18 MW and 1.3 MW of Taraz Greenpower Jenko and FaB Stroy in Merken district in 2029-2030, respectively.

There are seven hydroelectric power stations with a total capacity of 15.175 MW operating in the Turkestan region. In particular, it is the station of the company “Kelesgidrostroy” in Saryagash district, “Aksu-Energo” in Sairam district, Salem Consulting and SEC “Yntymak” in Kazygurt district, “Ak-su Kuat” in Tolebi district.

According to the concluded contracts with a single buyer, according to the results of the auction, it is planned to implement 12 HPP projects with a total capacity of 33.51 MW. In particular, we are talking about a 2 MW hydroelectric power station of the Jasyl Qyat company, a 4 MW TOWERGO hydroelectric power station in the Tolebi district with launch in 2025, a 2 MW Antares engineering hydroelectric power station (in 2026) and five hydroelectric power stations with a total capacity of 18.01 MW of Dala Solar in the city Kentau (in 2029). In addition, it is planned to launch a hydroelectric power station with a capacity of 2 MW by Azhur in Tulkubassky district in 2029, a hydroelectric power station with a capacity of 2 MW by Yntymak-Energo, a hydroelectric power station with a capacity of 3.5 MW by SEC Yntymak in Saryagashsky district (in 2029).

According to the plan, nine HPPs with a total capacity of 104.725 MW operate in the Zhetysu region. In particular, these are hydroelectric power plants with a capacity of 2 MW of the company “Aksu HPP”, “Kainar-AKB” in Aksu district, “Cascade KGES”, LLP “Korinskaya HPP” in Eskeldinsky district; “Kainar-AKB”, “Firm Tamerlane” and “Lepsy HPP” in Sarkandsky district.

According to the concluded contracts with a single buyer of electric energy, following the results of auctions, it is planned to implement 12 HPP projects with a total capacity of 157 MW. Among them are the hydroelectric power station with a capacity of 26 MW of the Korinskaya HPP-2 company in Eskeldinsky district (in 2025), the hydroelectric power station with a capacity of 14.9 MW of Baskan Power (in 2024), the hydroelectric power station with a capacity of 10.02 MW of Alt Energy (in 2029) and the hydroelectric power station with a capacity of 15 MW of the Mt & K company in Sarkandsky district (in 2029). In addition, these are hydroelectric power plants with a capacity of 4.9 MW “TK-Bridge XXI”, hydroelectric power plants with a capacity of 3 MW “Zhabykgidroresursy” in Alakolsky district (in 2029-2030), hydroelectric power plants with a capacity of 42 MW “Energobildservice”, hydroelectric power plants with a capacity of 8.6 MW “NEC “Zharyk Energy” in Kerbulaksky district (in 2029-2030), hydroelectric power plants with a capacity of 12.8 MW of Bekzat, 4.8 MW of Verkhne Talaptinskaya HPP in Koksu district (in 2029-2030), 9.9 MW of Cascade Karatal HPP in Tekeli (in 2029-2030).

In the North Kazakhstan region there is one hydroelectric power station with a capacity of 2.46 MW of the North Kazakhstan branch of the republican state enterprise “Kazvodkhoz” in the Shal Akyn district.

Zhanbolat Mamyshev (“Italics”)