Construction of biogas power plant in Kazakhstan: construction criteria and state programs for biogas sector development

piblished on 25 June 2024

Hereby we kindly pay your attention on the special provisions concerning with construction of biogas power plant in Kazakhstan. Firstly, we would like to consider a meaning of biogas power plant in Kazakhstan, consider-ing that biogas pertains to renewables¹.

So, power plant is an energy facility designed to produce electricity and heat, containing a building part, energy conversion equipment and necessary auxiliary equipment², and there is interesting fact that the Kazakh legislation does not directly establish a meaning of biogas power plant despite of biogas sector relates to renewables.

However, the Kazakh standard establishes a meaning of biogas set which is a complex of equipment and devices designed for preparation and processing of biowaste into biogas and effluent, including digester and biowaste processing units³ as well we might note that this standard indicates such meaning as bioenergetics set which is a complex of equipment designed to produce biogas and convert its energy into other forms of energy⁴.

In this regard we can make own personal meaning of biogas power plant because the Law of the Republic of Kazakhstan „On supporting the use of renewable energy” does not directly establish this meaning, and summarizing of the above-mentioned meanings we under-stood that biogas power plant is an energy facility intended to produce electricity and heat energy. Therefore, it is known fact that biogas power plant produces 2 types of energy, viz. (1) electricity and (2) heat energy.

So, we would like to describe the amount of auction price limits for electricity produced by biogas power plant as one of the supports in renewables and tariff for heat energy produced by biogas power plant. Regarding the amount of auction price limits, this amount is KZT 32,23 per one kilowatt-hour without VAT in accordance with Order of the Minister of Energy of the Republic of Kazakhstan dated 30 January 2018 No. 33. This amount is higher than the amount of auction price limit for electricity produced by wind power plants, but lower than the amount of auction price limit for electricity produced by solar power plants and hydroelectric power plants.

As well the auction price limits are subject of annual indexation under formula established by the Resolution of the Government of the Republic of Kazakhstan dated 27 March 2014 No. 271. However, this indexation is applied in case if the energy produced company concludes typical Power Purchase Agreement with Settlement and Financial Center for Support of Renewable Energy Sources LLP which is a purchaser in centralized electricity market. Regarding the heat energy produced by biogas power plant, there shall be noted that this energy is selling to the energy supply company by the energy produced company under the contract, and the energy produced company is exempted from paying for heat transmission services of energy transmission company. The costs of heat energy produced by biogas power plant are included in the tariff of the energy supply company in accordance with the procedure established by the Kazakh legislation on natural monopolies⁵.

So, there are spreading the provisions of the Kazakh legislation on natural monopolies for establishment of the amount of tariff for heat energy produced by biogas power plant con-sidering that heat energy production is regulated activities as well the energy produced company is a subject of natural monopoly⁶, i.e., tariff for heat energy produced by biogas power plant is not regulated by the Law of the Republic of Kazakhstan „On supporting the use of renewable energy”. In this regard, in accordance with the Kazakh legislation on natu-ral monopolies methods of tariff formation are as follows: (1) approval of a tariff by an au-thorized body, (2) tariff setting by a subject of natural monopoly, (3) determination of tariff on the basis of a concluded public-private partnership agreement, including a concession agreement⁷. Therefore, there are different commercial conditions for electricity production and heat energy production by biogas power plant.

The second known fact is a necessity of using of fertilizer by biogas power plant, and as consequences it’s required to regulate a method of waste management, i.e., to comply with the local green requirements. The provisions of waste management are regulated by the Ecological Code of the Republic of Kazakhstan. In this case, there shall be noted that energy utilization principle and principle of waste recovery are not applicable considering that fermentation residues have already gone through the anaerobic fermentation process⁸. Taking in account of the rules for classifying waste we understood that principle of burial of fermentation residues is applicable as well we understood that there are guidelines that recommend the exclusion of biodegradable waste from landfills and the development of measures for its disposal, including composting of organic waste, according to our survey results, there are no other regulations governing composting and/or the disposal of fermentation residues at the moment. There is only provision according to which local authorities are obliged to organize measures to stimulate the reduction of biodegradable waste disposal, including measures for its treatment, in particular by composting and recycling, includ-ing for biogas and/or energy production⁹.

Secondly, we would like to pay your attention on technical complexity of biogas power plant as construction facility in accordance with requirements of the Kazakh legislation. It’s required to consider that the legislation of Kazakhstan regulates certain provisions related to the state of protection against harmful effects of hazardous production factors, viz. provisions related to industrial safety. Considering the fact that the methane concentration in a biogas power plant might vary depending on the type of power plant, the feedstock used and the biogas generation process, the methane content can range from 50 percent to 70 percent (depending on the volume). The main components of biogas, in addition to the above, are also carbon dioxide (CO₂) and trace gases such as hydrogen sulphide (H₂S), moisture and impurities. Based on the above, there is a risk of methane ignition in the biogas power plant, as me-thane might be subject to spontaneous combustion under certain conditions.

Based on the fact that methane itself is present in the biogas plant as a combustible substance, and based on the fact that oxidizing agents are present, there is always a risk of ignition, therefore we consider that methane is a combustible substance.

The relevant conditions might be established in biogas power plant, and these conditions prevent the possibility of spontaneous combustion of methane. It includes good ventilation and smoke extraction to ensure that there is no build-up of gas and controlling and monitoring the concentration of methane and other gases in biogas power plant. In addition, modern biogas power plants are usually equipped with safety systems and automatic devices to prevent hazardous situations.

In this case Article 70 of the Law of the Republic of Kazakhstan „On Civil Protection” estab-lishes the relevant attributes of hazardous industrial facility and one of which is production, use, processing, formation, storage, transport (pipeline), destruction of an explosive (a sub-stance which, under certain types of external influence, is capable of rapid self-propagating chemical transformation with the release of heat and the formation of gases). In accordance with the above-mentioned attribute biogas power plant is recognized as hazardous industrial facility and based on this recognition as well biogas power plant is object of the first (increased) level of responsibility. Therefore, in case of biogas power plant construction there shall be noted that this plant is hazardous industrial facility and object of the first (increased) level of responsibility, and it’s recommended to consider the relevant require-ments of the Kazakh construction standards and rules.

Also, there shall be noted that biogas power plant might be recognized as strategic object in case if its capacity is more 50 megawatts¹⁰ as well shares of the companies that owned strategic object are recognized as strategic objects. However, considering placement plan of renewables in accordance which a maximum capacity of biogas power plants is 6.4 megawatts, we understood that theoretically biogas power plant might not be recognized as strategic object.

Thirdly, to our opinion there is significant condition such as governmental programs in the field of biogas development as type of renewables. In Kazakhstan there are different estab-lished governmental programs related to development of different fields, and the more ap-plicable programs for biogas sector are (1) Kazakhstan-2050 Strategy, (2) Strategic Devel-opment Plan of the Republic of Kazakhstan until 2025 and (3) Concept of Transition of the Republic of Kazakhstan to a Green Economy.

Regarding the Kazakhstan-2050 Strategy in which contains a challenge of global energy security because hydrocarbon economy is gradually coming to an end, and new era is coming, so renewables will improve human life. Regarding the Strategic Development Plan of the Republic of Kazakhstan until 2025 in which contains seventh task related to green economy and environmental protection. In accordance with this task new generation sources will be introduced in the power sector, including renewables. The volume of clean energy will increase twofold through the construction of 13 hydroelectric power plants, 34 wind power plants and 12 solar power plants.

Regarding the Concept of Transition of the Republic of Kazakhstan to a Green Economy, this program contains provisions an updating of municipal solid waste treatment and storage standards using new technologies such as anaerobic, composting or biogas to solve the municipal solid waste problems.

Therefore, the above-mentioned programs do not directly establish the relevant levers and tools of development and support for investors in the field of biogas, as well we would like to note that construction of biogas power plant is costly despite of cheapness of raw materials.

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¹ In accordance with Article 1.1-4 of the Law of the Republic of Kazakhstan “On supporting the use of renewable energy”
² In accordance with subclause 22 of clause 2 of the Electric Grid Rules approved by Order of the Minister of Energy of the Republic of Kazakhstan dated 18 December 2014 No. 210
³ In accordance with clause 2.2.9 of section 2 of ГОСТ Р 52808-2007, IDT Untraditional technologies. Energetics of biowastes. Terms and definitions
⁴ In accordance with clause 2.2.8 of section 2 of ГОСТ Р 52808-2007, IDT Untraditional technologies. Energetics of biowastes. Terms and definitions

⁵ In accordance with Article 9.6 of the Law of the Republic of Kazakhstan “On supporting the use of renewable energy”
⁶ In accordance with Article 4 of the Law of the Republic of Kazakhstan “On natural monopolies”
⁷ In accordance with Article 15.24 of the Law of the Republic of Kazakhstan “On natural monopolies”
⁸ In accordance with Article 324 of the Ecological Code of the Republic of Kazakhstan
⁹ In accordance with Article 351 of the Ecological Code of the Republic of Kazakhstan
¹⁰ In accordance with Article 193-1.2 of the Civil Code of the Republic of Kazakhstan