Trend of new developments in renewable energy legislation in Kazakhstan

Published on 5th December 2024

Kazakhstan became the first country in Central Asia to establish an organizational and legal framework for transitioning to a „green economy” and took the first step towards developing renewable energy sources in its energy system by adopting the Law „On Supporting the Use of Renewable Energy Sources” in 2009.

With vast renewable energy potential, Kazakhstan needs to create and develop mechanisms to ensure sustainable economic growth and affordable electricity in the country through legal and regulatory tools in the renewable energy sector. As such, the Republic of Kazakhstan's Law „On Supporting the Use of Renewable Energy Sources” of July 4, 2009, became a foundational document stimulating the development of renewable energy in the country. Over 15 years, numerous amendments and additions have been made to advance this sector, with the key achievements being:

Introduction of a single buyer system for renewable energy sources.
Implementation of auction-based trading to determine auction prices, which are subject to indexation.
Adoption of the Concept for transitioning to a „green economy.”
Ratification of the Paris Agreement.
Declaration of the „Year of Renewable Energy.”
Setting a goal to achieve a 15 percent share of renewable energy in the energy balance by 2030.
Approval of the Strategy for Carbon Neutrality by 2060.
Promotion of international cooperation for sustainable development within the framework of the Green Bridge Partnership Program (GBPP).
Financing the construction, reconstruction, and modernization of power grids, etc.

In 2024, the Republic of Kazakhstan signed the Law „On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Thermal Power, Electricity, and Regulated Services,” aimed at further improving the mechanisms for supporting and developing the energy sector. These changes directly affected the law.

Thus, a new term was introduced to support the development of small-scale renewable energy generation— „small-scale renewable energy facility.” These are technical devices with a capacity of up to 200 kilowatts (inclusive), intended to produce electric and/or thermal energy using renewable energy sources, along with associated facilities and infrastructure that are technologically necessary for the operation of the small-scale facility.

To guarantee the purchase of electricity generated by small-scale renewable energy facilities and eliminate barriers to grid access, energy supply organizations are now obligated to conclude power purchase agreements, and energy transmission organizations are required to ensure unhindered access to their networks.

To increase the share of the country's hydropower potential, small hydropower plants with a total capacity of no more than 10 megawatts, commissioned before July 1, 2023, are permitted to sell the electricity they generate directly to electricity supply organizations, bypassing the single buyer system.

Regarding the sale of electricity generated by renewable energy facilities by power-producing organizations through a bilateral power purchase agreement (Private PPA) with consumers, the requirement to apply the maximum tariffs for electricity, approved by the Order of the Minister of Energy of the Republic of Kazakhstan dated December 14, 2018, No. 514, has been introduced. Previously, there was no such requirement for applying maximum tariffs.

Thus, the legislative changes of 2024 create conditions for the accelerated development of renewable energy in Kazakhstan, encouraging both small businesses and large market players to adopt renewable energy.