Main Barriers to the Development of Small-Scale Renewable Energy Projects in Kazakhstan

5 August 2019

According to the numerous studies, Kazakhstan has an inexhaustible potential of solar, wind, geothermal energy and bioenergy. In this regard, the prospects for the development of the renewable energy industry in Kazakhstan are enormous, and it is proved by the launch of the first projects, coupled with the successful completion of the first auction for the selection of renewable energy projects (RE) sessions. However, such first pilot projects and auction projects of large generation are attractive due to payback taking into account mass production and, it is worth noting that the necessary legislative framework has been made in Kazakhstan and it is directed for the development of large-scale renewable energy projects.

Small-scale projects for the production of renewable energy sources have a completely different amount of risks relative to their counterparts, large-scale renewable energy projects. Small generation means the production of electricity by households or small businesses (SMEs) with the ability to sell surplus to the network, which also performs the functions of a battery, that is, storage and transmission of electricity produced.

Unfortunately, at the moment, small-scale RE projects are implemented on the basis of the general state policy of the Republic of Kazakhstan in relation to all RE projects and do not have separate regulatory and incentive mechanisms with the exceptions as presented below.