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Kazakhstan has awarded 170MW of PV in its first solar auction with winning prices ranging between KZT 18.6-22.9 (US$0.051-0.063)/kWh.

A total of 20 companies submitted 28 applications for projects of capacity between 10-100MW. The ceiling price for the auction was KZT 32/kWh.

The results released by Kazakhstan Electricity and Power Market Operator (JSC KOREM) were as follows:

Bidderprice KZT/kWhprice US$/kWhCapacity (MW)
JSC Hydroenergy18.6 0.050850
Avelar Solar Technology18.80.051420
Avelar Solar Technology22.50.061550
Shell Kazakhstan B.V. Branch22.90.062550

Avelar Solar Technology, part of Russian firm Hevel Group, secured 15-year power purchase agreements (PPAs) for 70MW of solar in southern Kazakhstan for which commissioning is set for 2019/20.

In a release, Igor Shakhray, CEO of Hevel Group, said: "This tender was a highly competitive one and our victory means that we have entered an international market not only as PV modules supplier, but also as a power company competing with major international players. 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."

JSC KOREM has plans to hold auctions this year for in total: 290MW of solar, 620MW of wind, 75MW of hydro and 15MW of bio power.

In other news, The European Bank for Reconstruction and Development (EBRD) is providing US$35 million in project financing for a new 28MW solar plant in Kyzylorda in southern Kazakhstan. The solar park project will be implemented by Nomad Solar, a special purpose company incorporated in Kazakhstan and owned by French company Total Eren and the UAE-based firm Access Infra Central Asia. The respective loan and project support agreements were signed yesterday in Brussels.

Tags: auction, hevel, kazakhstan, prices