Financial guarantee of application | Participation in Auction | Аукционы ВИЭ
Joint-Stock Company Kazakhstan electricity and power market operator

Financial guarantee of application

To obtain the participant status to the company planning to participate in  auction, it is required to:

  • get registration on the website of the organizer, sign Agreement and pay for service of the organizer;
  • provide financial guarantee in the name of the Financial Settlement Center (the FSC of RE LLP).

The applicant shall choose one of the following types of financial guarantee, issued with the SWIFT system:

1. a bank guarantee;

2. a standby letter of credit.

Value of financial guarantee for participation in auction is calculated by the applicant himself. Amount of financial guarantee of application is:

  • for zonal auction is 2,000 (two thousand) KZT per 1 (one) kW of installed capacity multiplied by the installed capacity of the RES facility indicated in the application for participation in auction.
  • for project auction is 5,000 (two thousand) KZT per 1 (one) kW of installed capacity multiplied by the installed capacity of the RES facility indicated in the application for participation in auction.

Note.* For example, You plan to participate in zonal auction for selection of RES projects with solar power plant project for 50 MW, then the amount of financial guarantee of application for participation in auction will comprise: 50 000 (kW)*2000(KZT/kW) = KZT 100 000 000.

Financial guarantee is valid for at least 150 (one hundred and fifty) calendar days from the date of the auction and is irrevocable.

In order to obtain financial guarantee of application for participation in auction, the applicant independently chooses the Bank in which he will issue financial guarantee of application for participation in auction.

Please note that in accordance with the auction rules, a Bank guarantee or stand-by letter of credit is provided as financial guarantee of application for participation in auction:

1. from the resident banks of the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "B" by Standard & Poor's or "B-" by Fitch or "B3" by Moody's Investors Service or with the rating of the parent organization (which owns more than 50% of the shares of the resident bank of the Republic of Kazakhstan) not lower than the "BBB" level by Standard & Poor's or "BBB" by Fitch or "Baa2" by Moody's Investors Service;

2. from non-resident banks in the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "ВВВ" by Standard & Poor's, "ВВВ" by Fitch, "Ваа2" according to Moody's Investors Service.

At the same time, a bank guarantee or a standby letter of credit of non- resident banks of the Republic of Kazakhstan must be confirmed by resident banks, by issuing a counter-guarantee for non-residents obligations under subparagraph 1) of this paragraph.

The non-resident banks of the Republic of Kazakhstan with the long-term credit rating in foreign currency not lower than "ВВВ" by Standard & Poor's, "ВВВ" by Fitch, "Ваа2" by Moody's Investors Service may issue bank guarantee or standby letter of credit without corresponding without issuing counter-guarantees.

Note.* When applying to the Bank for financial guarantee of application for participation in auction, be sure to check the compliance of the Bank you have chosen with the criteria provided for in the Rules of the auction.

The financial guarantee for participation in the auction shall be issued in favor of the financial settlement center and shall be submitted to it not later than 2 (two) working days prior to the date of the auction. 

After the issue of financial guarantee of application for participation in auction, the applicant should advise the issued financial guarantee of application for participation in auction in the Partner-bank of the Financial Settlement Center for the support of renewable energy sources:

  • JSC Bank CenterCredit
  • JSC ForteBank

All Bank fees and expenses related to financial guarantee of application for participation in auction for selection of RES projects, including the Beneficiary's bank, shall be paid by the applicant.

Financial guarantee deposited by the applicant in the form of a bank guarantee or a standby letter of credit is returned within 3 (three) working days from the date of submission of a written request sent by a Participant to the financial settlement center in one of the following cases:

1. the Participant did not win the auction in accordance with the results of the auction;

2. the auction winner signed and provided financial guarantee for fulfillment of PPA terms.

If the winner of the auction has evaded the conclusion of the PPA, the financial settlement center shall issue a claim for payment under the relevant bank guarantee or a standby letter of credit.

Please pay attention that preparation of financial guarantee of application for participation in auction is the most labor-intensive and financially expensive procedure connected with preparation for auction, and also You are recommended to contact the Financial Settlement Center for the support of renewable energy sources in advance to exercise this issue.

You can find more information on procedure of issuing the financial guarantee in auction here.

If You have any questions related to procedure for obtaining financial guarantee of application, please contact the the Financial Settlement Center for the support of renewable energy sources – Akhmetova Zamira (7172) 690-106.



Auction key dates