M&A in Renewable Energy in Kazakhstan

05/08/2019

The existing potential for the development of the renewable energy sources (the “RES”) in Kazakhstan is significant. Even though the renewable energy (the “RE”) sector is at an early stage of its development, during the last decade the Government of Kazakhstan has created favorable conditions for the production, transmission and sale of electric and thermal energy produced from the RES.

In terms of intentions formulated in primary legislation – including the renewable energy law, the RES Law – the current provisions are favourable for RE investors, including a power purchase agreement (“PPA”) standard length of 15 years, a purchase obligation on the off-taker Financial Settlement Center (“FSC”), the right to be connected to the network, priority dispatch and exemption from balancing responsibility.