Kazakhstan’s first solar power auction sees high demand

Kazakhstan’s first solar power auction in 2024 attracted a total demand of 700 megawatts (MW) for constructing a 100-MW solar plant in the southern part of the country, according to a statement from Korem, the auction organizer.

«On Sept. 23, 2024, auctions were held to select renewable energy projects for a solar power plant with a total installed capacity of 100 MW for the Southern Zone of Kazakhstan’s Unified Electric Power System (UES). During the trading session, participants submitted 34 price offers and seven companies were approved to participate. The total value of the submitted applications was 700 MW,» the statement said.

The Ministry of Energy set the maximum auction price for 2024 at KZT34.61 per kilowatt-hour (kWh), excluding VAT. Seven bidders submitted offers ranging from KZT34.61 to KZT15.93 per kWh. The winning bid came from Damona, which plans to build a 100-MW solar power plant in Qonaev, located in the Ili district of the Almaty region, on a 200-hectare site. The electricity sale price will be KZT15.93 per kWh, 54% lower than the starting price.

Damona’s sole participant is Solnechnaya Sistema (Russian for «Solar System»), led by Dmitry Zaitsev and owned by the ML Asia Energy Holding Limited private company. The sole owner of ML Asia Energy is Mikhail Lisyansky and the company is registered with the Astana International Financial Centre (AIFC).

The total announced capacity for auction purchases in 2024 is 560 MW: 100 MW for solar power plants, 400 MW for wind power plants, 50 MW for hydroelectric power plants and 10 MW for biogas power plants. At the beginning of 2024, renewable energy sources accounted for 6% of Kazakhstan’s total electricity production. The country aims to increase this share to 10% by 2030 and 50% by 2050.