In Kazakhstan, it is proposed to allow the population, SMEs and farms to independently generate electricity and sell it. If the relevant bill is adopted, every citizen will be able to install renewable energy technology with a capacity of no more than 200 kilowatts. Moreover, you can use your own electricity for your own purposes, and if there are surpluses, they can be sold to an energy transmission organization, Kazinform agency correspondent reports.

In September 2023, in his message to the people of Kazakhstan, President Kassym-Jomart Tokayev instructed the Government to focus on energy efficiency and the introduction of "green" technologies. The goal is to reduce the key indicators of energy consumption and energy intensity by at least 15% by 2029.

— We should focus on the development of a "green" economy. It is obvious that in the long term, a global transition to clean energy is inevitable. According to international analysts, about a third of global capital investments already fall on renewable energy projects, the President said.

According to him, a lot of work has also been done in Kazakhstan, a new Environmental Code and a Strategy for achieving carbon neutrality by 2060 have been adopted. The share of renewable energy in Kazakhstan's total generation has grown to almost 5% over the past five years.

The Head of State believes that the structure of Kazakhstan's energy balance will inevitably change in the coming years. Therefore, it is necessary to improve approaches to the management of the entire energy industry: from generation to sales.

In March 2024, the Majilis is considering a draft law "On amendments and additions to certain legislative acts of the Republic of Kazakhstan on support for the use of renewable energy sources, electric power industry and natural monopolies." Deputy of the Mazhilis Baurzhan Smagulov shared his opinion on this issue.

— Baurzhan Amirzhanovich, tell us why it became necessary to adopt separate amendments to support renewable energy sources?

— Hello. I would like to start with what became the starting point for the adoption of this bill. In May 2021, the head of state held a meeting on the development of the electric industry. Every year, a large number of new housing is built in Kazakhstan, new enterprises are put into operation. Therefore, our energy consumption is increasing every year.

At the same time, we do not save electricity in any way. Energy intensity indicators in Kazakhstan are three times higher than in the OECD countries. And what does it take to fix this situation? It is necessary to introduce modern technologies and energy-efficient materials.

In general, the law we are talking about today was adopted back in 2009. Over 15 years, 37 amendments have been introduced into it. That is, new circumstances appear every year, something changes, so the Government or deputies initiate various innovations to make the law more effective.

Now our task is to focus on the introduction of renewable energy sources. The Head of State set the task that by 2030 renewable energy sources should account for 15% of the total energy balance of the country.

— Tell us about the main novelties of the bill. Are new concepts being introduced?

— First of all, I would like to tell you about small-scale renewable energy facilities. This concept is being introduced for wider use of "green" technologies by individuals, businesses, as well as peasant and farm enterprises. Also, this bill will fix the rules for connecting small-scale renewable energy facilities to the general electric grid for authorized bodies.

Previously, these rules did not exist, so there were various barriers to suppliers of "green" energy. Now these barriers are eliminated. That is, the authorized body must approve a standard contract for the purchase and sale of electricity from net consumers.

For reference: a net consumer of electric energy is an individual or legal entity that provides fully or partially its own consumption of electric energy from an object for the use of renewable energy sources owned by it, connected to a distribution electric network and equipped with systems for separate accounting of electric energy consumption from the network and supply volumes to it.

Secondly, the bill provides for an increase in the installed capacity of a small—scale renewable energy facility from 100 to 200 kilowatts in order to stimulate the use of renewable energy technologies by the population, SMEs, peasant and farming enterprises. And thirdly, it is an exemption from payment for the transmission of electric energy for net consumers in order to simplify barriers to the development of small-scale renewable energy technologies.

— And what will the whole process of connecting small-scale renewable energy facilities to the network look like? How will Kazakhstanis be able to generate electricity themselves and sell its surpluses?

— The process will be structured as follows: you receive technical conditions from the energy transmission organization, install a small-scale renewable energy facility. Next, set up a bidirectional counter. On the one hand, it will count how much electricity you have consumed, on the other hand, how much you have generated.

As I have already said, the maximum capacity of a small-scale renewable energy facility is increased to 200 kilowatts. For example, you consumed 100 kilowatts of electricity in a month, and generated the same 200 kilowatts. This difference in the remaining 100 kilowatts is bought from you by an energy transmission organization at a tariff set by the Committee for Regulation of Natural Monopolies.

If you have generated 200 kilowatts of electricity and consumed 250, then you will need to pay utility bills only for the missing 50 kilowatts.

— If I want to install renewable energy sources and sell the surplus to an energy transmission organization, then should I open some kind of sole proprietor or something else?

— Surpluses can be sold at a marginal price without differentiation by consumer groups of the energy supply organization, which is subject to state price regulation. It is not necessary to open a sole proprietorship for this.

It should be understood that Kazakhstan has many measures to support and develop "green" technologies. And they are quite effective. But specifically, this bill is aimed at the development of small renewable energy facilities and is intended for the population, small and medium-sized businesses, as well as peasant and farm farms.

— Can I install renewable energy technology in an apartment building? For example, on the roof.

— This is also possible, but such actions need to be coordinated with your partner.

If we take international experience, then there are many houses in Europe or Turkey where renewable energy facilities are installed on the roof. We have implemented such projects in Almaty and Turkestan region in a pilot mode. Now it needs to be scaled throughout Kazakhstan.

— The draft law also contains provisions concerning the so-called small hydroelectric power plants. What is meant by small hydropower plants, are there many of them in Kazakhstan, and what are these amendments aimed at?

— Now hydroelectric power plants with a capacity of up to 10 megawatts will be considered small hydroelectric power plants. In the new bill, we have provided that now they can sell the generated electricity to unregulated energy supply organizations. The fact is that since July 1, 2023, a single electricity buyer has been operating in Kazakhstan. All generating stations sell their electricity to this organization, which then distributes electricity throughout the country.

Unfortunately, small hydropower plants cannot compete in this market. But until the middle of last year, they already had sales markets. Therefore, we have created conditions for small hydropower plants where they will be able to sell their electricity to unregulated energy supply companies.

— I would also like to know the details of budget lending within the framework of this bill.

— You need to understand that the technical condition of the racks is in a deplorable state. They critically need to upgrade their infrastructure. There, the deterioration of equipment reaches 70-80%.

Therefore, the new law provides for budget lending to regional electric grid companies (REC). We have three communal properties — in Astana, Kyzylorda and Uralsk. There are also private racks. Both of them will have the opportunity to take out a loan within the framework of budget lending.

For communal RECs, loans will be provided at a minimum interest rate for 20 years. There is an overpayment actually only for loan servicing. For commercial RECs, lending through the DBK line is provided at 7%.