Renewables
Kazakhstan proposes new renewable power purchase agreement terms
Kazakhstan is updating its renewable energy regulations to reduce off-take risks and launch storage auctions.
Key points
- Proposed amendments allow certain generators to sell electricity to the Financial Settlement Center.
- The government is preparing to introduce competitive auctions for energy storage capacity.
- Kazakhstan aims to expand its renewable energy infrastructure significantly over the next decade.
What happened
According to pv magazine, authorities in Kazakhstan are revising regulations governing clean energy power purchase agreements to attract greater financial backing for wind and solar installations. The proposed updates seek to enhance contractual certainty and mitigate investment hazards.
Under the planned adjustments, power plants delivering electricity through bilateral agreements for a minimum of 36 months would qualify to transfer their output to the Financial Settlement Center for Renewable Energy Support. This entity functions as the single electricity purchaser and operates as an arm of the national grid operator, Kegoc JSC.
This alternative arrangement aims to protect generators if existing bilateral contracts lapse or buyers halt purchases. By cutting counterparty risks, the framework intends to improve revenue visibility and encourage project funding. However, specific pricing structures, contract lengths, and sales terms remain omitted from the initial proposal, leaving crucial details about project bankability unconfirmed.
Alongside these contract adjustments, the administration is preparing competitive auctions for energy storage. While this framework is designed to bring clarity to private investors, essential elements such as procurement volumes, technical requirements, and timelines are still pending.
Government data indicates that large-scale solar project pipelines reached approximately 900 MW by the end of October. Installed solar capacity stood at 1.37 GW in April, contributing to a total renewable capacity exceeding 3.7 GW. Renewables presently constitute 8.5% of the national electricity mix, while the state targets the addition of at least 8.4 GW of renewable infrastructure by 2035, including roughly 1.8 GW of solar generation.
Why it matters
For energy investors and policymakers across emerging markets, Kazakhstan's regulatory shift highlights the critical role of state-backed off-takers in mitigating financial risk for capital-intensive infrastructure. Securing reliable long-term revenue streams remains a primary challenge for independent power producers globally, particularly in developing sectors where counterparty defaults can stall deployment.
Data from the World Bank shows that fuel exports accounted for 54.5% of Kazakhstan's merchandise exports in 2025, underlining the economic imperative for fossil-dependent nations to diversify their energy portfolios. As countries strive to expand renewable integration while maintaining grid stability, transparent mechanisms for energy storage procurement and power purchase agreements will serve as vital precedents for attracting private capital to the energy transition.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
11.0% of electricity in Kazakhstan was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
