• Kazakhstan has selected 4 companies and awarded 170 MW of solar power capacity in all under its first solar power auction
  • Lowest winning bid of KZT 18.6 ($0.051) per kWh was offered by JSC Hydroenergy Company that won 50 MW
  • Hevel Group won 20 MW for KZT 18.8 ($0.052) per kWh and 50 MW for KZT 22.5 ($0.062) per kWh through its subsidiary Avelar Solar
  • Shell Kazakhstan bid KZT 22.9 ($0.063) per kWh to win 50 MW capacity in the auction

The Joint-Stock Company Kazakhstan Electricity and Power Market Operator (JSC KOREM) has awarded 170 MW of total solar capacity in the country’s first solar auction, picking out only four winners out of 20 interested companies.

The lowest winning bid of KZT 18.6 ($0.051) per kWh came from JSC Hydroenergy Company that won 50 MW capacity. Russia’s Hevel Group secured rights to develop 70 MW capacity in Southern Kazakhstan through its subsidiary Avelar Solar Technology LLC. It won 20 MW for a price of KZT 18.8 ($0.052) per kWh and 50 MW for KZT 22.5 ($0.062) per kWh.

Hevel said it has been awarded 15-year PPAs for all its awarded capacity that will be commissioned in 2019-2020. “This tender was highly competitive one and our victory means that we have entered an international market not only as PV modules supplier, but also as an power company competing with major international players,” said Igor Shakhray, CEO of Hevel Group. “CAPEX of solar power plants in Russia after the last bidding round is already at a competitive level and we will continue to decline it by investing in R&D, developing new advanced technologies and launching new products.”

Oil giant Shell’s local presence, Shell Kazakhstan B.V. Branch was awarded 50 MW for a price of KZT 22.9 ($0.063) per kWh.

Kazakhstan plans to hold auctions for 1 GW of renewable energy capacity in 2018. Of this, solar has been allocated 290 MW, of which JSC KOREM has now allocated 170 MW (see Kazakhstan Launches 1 GW Tender).

Hevel Solar and Shell apart, Indian EPC firm Sterling and Wilson too is eyeing the market, aiming for 200 MW of PV capacity by 2020. It recently announced the company is expecting to receive bids for 180 MW of projects in the month of October 2018 in Kazakhstan (see Sterling And Wilson Eyes Kazakhstan PV Market).

The European Bank for Reconstruction and Development (EBRD) has approved $35 million loan and project support agreement for a 28 MW PV project in the country (see $35Mn EBRD Loan For Kazakh PV Project).