RENEWABLE ENERGY IN KAZAKHSTAN

Transcription

1 RENEWABLE ENERGY IN KAZAKHSTAN Ainur Akhmetova International Law Firm Integrites Kazakhstan CHINA GERMANY KAZAKHSTAN NETHERLANDS RUSSIA UKRAINE UNITED KINGDOM 1 ST FLOOR, SUCCESS BUSINESS CENTER, 1/1, ZHANDOSSOV STREET, ALMATY, , KAZAKHSTAN +7 (727) /84/85, kz@integrites.com,

2 ADDITIONAL INFORMATION: In the event you are interested to get information that is more detailed on this topic you can contact one of the following lawyers: AKTAU: ANUAR MEDEUOV Representative in Aktau Tel./Fax: +7 (7172) Mob.: +7 (701) (707) amedeuov.integrites.com ALMATY: KURMANGAZY TALZHANOV Managing Partner Tel./Fax: +7 (727) /84/85 ext. 201 Mob.: +7 (701) ktalzhanov.integrites.com DUMAN AKHMETOV Partner Tel./Fax: +7 (727) /84/85 ext. 204 Mob.: +7 (707) dakhmetov.integrites.com ASTANA: AINUR AKHMETOVA Acting Head of Astana Branch Office Tel./Fax: +7 (7172) Mob.: +7 (701) aakhmetova.integrites.com ATYRAU: ANUAR MEDEUOV Representative in Atyrau Tel./Fax: +7 (7172) Mob.: +7 (701) (707) amedeuov.integrites.com KARAGANDA: AITKAZY TALZHANOV Head of Karaganda Branch Office Tel.: +7 (7212) Fax: +7 (7212) Mob.: +7 (701) atalzhanov.integrites.com SVETLANA SHTOPOL Partner Tel./Fax: +7 (727) /84/85 ext. 210 Mob.: +7 (701) sshtopol.integrites.com 2

3 This information is intended as a general guidance only and cannot be used as a special legal opinion. RENEWABLE ENERGY IN KAZAKHSTAN Kazakhstan is among the world leaders in the variety and quantity of mineral resources. As the most significant among those for the country s economy are oil and gas, coal and other ore minerals, which is why the legal framework in these economic sectors is so well-developed, historically the government has been less focused on the development of alternative energy sources. For instance, at present the majority of power stations in Kazakhstan run on natural gas, coal or oil derivatives. However, the recent crisis in the world economy and the awareness of the need to reduce the energy intensity of the economy and the environmental impact have led the leadership of the country to actively focus on the creation of favorable conditions for the use of renewable energy sources ( RES ). The concept of RES Under Kazakhstan law, RES mean: sources of energy which are renewable through natural processes, including: the energy of solar radiation energy; wind energy; the hydrodynamic energy of water; geothermal energy (the heat of soil, ground water, rivers and water bodies); and manmade sources of primary energy resources: biomass; biogas; and other fuels from organic waste used in electric and/or thermal power generation. THE STATE SUPPORT INCLUDES: 1. The preferential fixed tariffs on the electric power for objects of RES for a period of 15 years. The approved fixed tariffs are subject to annual indexation taking into account inflation in the order determined by the Government of RK. 2. Reservation and priority when granting the land plots for construction of facilities of RES. 3. Obligatory connection of objects for use of RES to networks power transferring organizations. the New and reconstructed objects using RES have the right for easy and nondiscriminatory access to the next technically realized point of connection to electric networks of the power transferring organizations. the Network company has to cover all cost of connection of an object of RES (including strengthening of network), except costs of a power line between power plant and network, and also other components on the party of the new producer of the electric power. 4. Priority transfer of the electric energy made with use of RES. 5. Obligatory purchase of the electric power made with use of RES. 3

4 6. Exempt of RES from a payment for power transmission on networks. 7. Release from responsibility for balancing for the RES separate producers; The Special balancing group for all RES. 8. Absence of Licensing. 9. granting to the legal entities which are carrying out design, construction and operation of objects for use of RES, investment preferences and privileges and also various measures of support: exemptions from tax; custom duties; state natural grants; investment subsidies (compensation up to 30 percent of the actual costs); Stability guarantees at change of the legislation of the Republic of Kazakhstan. 10. Measures of the state support of subjects of industrial and innovative activity: financing, including joint financing, projects, leasing financing; providing guarantee certificates and guarantees on loans; crediting through financial institutions; subsidizing of a rate of remuneration on the credits issued by financial institutions and coupon remuneration on bonds; implementation of investments into Charter Capitalauthorized capitals; the guaranteed order; granting innovative grants; providing with the qualified personnel resources; providing with engineering and communication infrastructure; granting the land plots and rights of subsurface use; support in domestic market; attraction of foreign investments; and development and promotion of export of the domestic processed goods, services. FUTURE PERSPECTIVES OF RES In a word, today use of RES has become the important and obligatory direction of development of power of the future. Kazakhstan in this plan possesses all necessary resources. Taking into account deficiency of the electric power in the country, especially in the southern regions, broader application of alternative sources is of particular importance. Inefficiency of centralization of power supply in the conditions of the huge territory of Kazakhstan occupying 2,7 million sq.km, and low population density (5,5 persons/sq.km) leads to essential losses of energy at its transportation. Therefore, use of RES will allow to lower costs of electricity supply of the remote settlements, to save considerably on construction of new power lines. Small hydroelectric power stations the most actively developing direction of use of RES in the Kazakhstan. So, five small hydroelectric power stations with total rated volume about 20 MW have been entered into the period from the 2007th on the 2010th in Almaty region. Construction of such hydroelectric power stations working without retaining dams at the small rivers is one of the important directions of increase in energy efficiency of the Kazakhstan economy. According to the experts, the best result will bring a construction of cascades of safe small hydroelectric power stations on the rivers of the Southern Kazakhstan. 4

5 In long-term prospect wind power has the largest potential. In the territory of 50 thousand sq.km that makes 2% of the area of Kazakhstan, the average annual speed of wind exceeds 7 m/s. Opportunities only of these territories are enough for development of 1 trillion kwh a year that many times over blocks needs of the republic for the electric power. The total annual energy potential of wind in Kazakhstan is estimated at the level of 1,8 trillion kwh, and its density in a number of places makes 10 MW on sq.km. In particular, regions of Northern, Central, Western and Southeast Kazakhstan, especially Dzungarian Gate and the Sheleksky corridor where the average annual speed of wind makes 7-9 m/s and 5-9 m/s respectively, and also Astana, Shevchenko Port and Arkalyk have a considerable resource. Their opportunity from the point of view of use in generation of the electric power of air streams can call unique. To the 2020th in the republic will put 34 objects using renewables into operation. The general power of new power plants will make 1362,34 megawatts. Most of all energy will be developed by 13 wind farms 1081 megawatts. 17 hydroelectric power stations will give 205,45 megawatts, and four solar power stations 76 megawatts. The main capacity of hydroelectric power stations is concentrated in the Almatinksky region. In total by 2020 it is planned to construct 11 hydroelectric power stations there. The largest of them, 60,8 megawatts, will appear on the river Shelek. Besides, the hydroelectric power station will be earned in the East Kazakhstan, Jambyl and Southern Kazakhstan regions. Solar energy for production of electricity will be used in the Almaty, Jambyl and Kyzylorda regions. The most powerful power plant on 24 megawatts it is planned to construct in the Jambyl region. A number of projects is already actively financed. So, First Wind Power Plant LLP (the affiliated organization Samruk-Green Energy LLP) and Eurasian Development Bank have signed the contract for opening of a credit line for the sum of 14,2 billion tenge for the purpose of financing of the "turnkey" project of construction of the first large wind power plant in Kazakhstan on Erementau's platform in the 45 MW Akmola region. Development of electric energy of more than 172 million kwh a year without consumption of hydrocarbon fuel will allow to save more than 60 thousand tons of coal and to increase reliability of electrical supplies in the region. Within carrying out the forthcoming EXPO-2017 it is planned to provide power supply of objects of an exhibition due to energy which will be developed by this wind electro station. The role of RES in power of the future will be defined by opportunities of development of new technologies, materials and designs for creation of competitive power stations. Today the cost of RES remains high, however at consecutive development and reduction in cost alternative power engineering will take the place in a world energy balance. Bibliography: 1. The RK Law On support of the use of renewable energy sources, No. 165-IV ZRK dated 4 July The RK Land Code, No. 442-II dated 20 June 2003 (the Land Code ). 3. The RK Water Code, No. 481-II dated 9 July 2003 (the Water Code ). 4. The RK Code of administrative offenses, No. 155-II dated 30 January 2001 (the CAO»). 5. The RK Law On natural monopolies and regulated markets, No. 272-I dated 9 July 1998 (the Natural Monopolies Law ). 5

6 6. The RK Law On the state regulation of biofuel production and turnover, No. 351-IV ZRK dated 15 November The RK Law «On the ratification of the Charter of the International Renewable Energy Agency (IRENA)», No. 82-V ZRK dated 22 March The RK Law On Electric Power, No. 588-II dated 9 July 2004 (the Electric Power Law ). 9. The RK Entrepreneur Code, No. 375-V dated 29 October 2015 (the Entrepreneur Code ) Guidance for Investors (Posobie dlya investorov), IFC, Washington D.C., USA, Legal framework in the area of the use of renewable energy sources in Kazakhstan, White&Case, August