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Joint-Stock Company Kazakhstan electricity and power market operator

Questions and Answers

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20.06.2019
Regarding the auction in 2019, there will be 2 different auctions 30 MW and 50 MW capacity respectively for PV Solar. Could you please define the abovementioned capacity is "dc" or "ac" capacity?

Good day! Thank you for applying!
Can you define Your question more precisely to allow us to provide a correct answer.

28.03.2019
The auction for 50MW SPP on 27.11.2019 is qualified as a "Project Auction". Does this mean that the winner can only use the reserved land plot and connection point indicated in the Schedule? Could you clarify?

Good day! Your question and interest in RES auction are appreciated!

On November 27, 2019, the Ministry of Energy plans to hold a pilot project auction. In the project auction, investors will be invited to participate in the auction for a specific site, whereto the documents will be attached as follows:

1)  initial data, marketing research on construction of new RES using facility, including the assessment of resource potential;

2)  public hearings results and preliminary environmental impact assessment;

3)  location of the land plot with due regard to technical characteristics and costs for purchase/lease of land, taxes;

4)  scheme of power supply and technical conditions for connection, developed and agreed in accordance with the Grid regulations approved by the Order #210 of the Minister of Energy of the Republic of Kazakhstan dated December 18, 2014 (registered with the Ministry of Justice of the Republic of Kazakhstan under #10899 on April 30, 2015 ).

The winner of the project auction is obliged to use land plot and connection point proposed in the schedule of auction.

The project auction will take place on 27 November 2019, the auctioned installed capacity is 50 MW, land plot – Shaulder settlement, Otrar district, Turkestan oblast with an area of 100 Hectares, point of connection to the electric grid of the Ontustik Zharyk Transit LLP, Shaulder substation (110/35/10 kV), Otyrar district, Turkestan oblast with the restriction on the power input of 50 MW.

The difference between project and zonal auction is that in the project auction besides the payment for participation in the auction, it is necessary to pay a separate amount for the package of documents. According to the draft Rules, three months before the auction, a package of documents should be provided to investors, then the amount for the package of documents will be known. Currently, these works are underway.

Best regards, JSC KOREM

04.10.2018
Regarding this October auctions, is a bid bond issued/ provided from Citibank Kazakhstan accepted?

Good day! Thank you for your interest in the RES auctions.

In accordance with paragraph 49 of the Rules of organizing and holding auction, including qualification requirements for auction participants, the content and procedure for submitting applications, types of financial guarantee for participation in auction and conditions of their deposit and return, the procedure for summing up the results and determining the winner approved the Order of the the Minister of Energy of the Republic of Kazakhstan as of December 21, 2017 No.466, the bank guarantee or the standby letter of credit as financial guarantee is submitted by 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. 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.

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.

For the foregoing reasons, to participate in the RES auction, the Bank guarantees or stand-by letters of credit issued by any resident and non-resident banks of the Republic of Kazakhstan of the corresponding credit rating are accepted.

Best regards, Financial Settelement Center of Renewable Energy

02.08.2018
Dear Manager,\r\n\r\nCould you please provide us with a list of RE projects auction in October 2018?\r\n\r\nSome of our Chinese clients show strong interest in the up-coming auction.\r\n\r\nThank you!
Good afternoon! Thank you for showing interest in our auction for RES. 
You can find this information on our website. The latest news in the section "Industry news".
30.04.2018
If we win the auction as a foreign company , can we transfer all rights of project to our SPV (Kazakh company) which will be established after winning the auction? Could you please explain the transfer process?

Financial Settlement Center signs PPA only with auction winners (Paragraph 60 of Auction Rules). After signing PPA there is chance to change the contractor in accordance with:
- Civil legislation of the Republic of Kazakhstan
- The change of data on the legal entity in the List of energy producing organizations of RES of the Ministry of Energy of the Republic of Kazakhstan.

Best regards, Financial Settelement Center of Renewable Energy

30.04.2018
Can foreign companies participate to the auction? or Do we have to establish a SPV or LLP before participating to the auction;?

Thank you for contacting us!
Both residents and non-residents of the Republic of Kazakhstan can participate in the auctions on selection of renewable energy projects. For foreign companies it is not obligatory to have a special purpose company or limited liability partnership to participate in the auctions.

Best regards, JSC KOREM

16.04.2018
We are translating our company documents into Russian and Kazakh in our home country and we are notarizing and apostille the same documents also in our home country. Is this satisfactory for your authority or do we need another notarization in Kazakhstan as well?

We would like to thank you for your question and interest in the RES auctions. For registration in the trading system of foreign legal entities, it is necessary to submit statutory documents in accordance with the laws of the country where they are registered in with mandatory attachment of notarized translation to each document into Kazakh and Russian languages, the fidelity of which is certified by the notary of their country.

Best regards, JSC KOREM

16.04.2018
How can we receive distant training without coming to Kazakhstan? Is it compulsory to get a training?

Thank you for your question and interest in the RES auction. The Organizer conducts training for working in the trading system at the request of the Applicant. To complete the training, sign up in the trading system, conclude a contract and pay for the Organizer's services.

You may train independently by learning the training materials on the Organizer's website in the Training tab. You can clarify the date and time of distance learning from the operators of the auction at +7 7172 690 730.

Best regards, JSC KOREM

11.04.2018
Hello, This is in reference to the Qualification requirements for auction Participants. Regarding the Power of Attorney to be provided, could you please tell me what wording would be acceptable? Which powers does the COE need to give to the representative? Thanks

Good day!

Please check out the draft and model of the power of attorney to be granted to the applicant's authorized representative at Internal documents of auction organizer tab.

Best regards, JSC KOREM

04.04.2018
Hello How can we receive the contract to participate to the RES auctions? Thanks

Good day!     

First, you should sign up in the trading system database on the Organizer's official website to participate in the auctions for selection of renewable energy sources projects. You as the Bidder should sign up in the trading system with the indication of name of legal entity, actual and legal addresses, initials, e-mail address and you should generate password for entering the Bidder's personal account. Once you entered the personal account using the e-mail address, which is the identifier for entering the trading system and generated password, the Bidder shall upload the constituent documents.

Foreign legal entities provide similar documents in accordance with the laws of the country they are registered with a mandatory notarized translation of each document into Kazakh and Russian language

After the Bidder passes the online registration, the organizer checks, agrees documents package for compliance with requirements, and sends the draft contract for organization and holding of auctions for selection of projects for construction of new renewable energy sources facilities to the Bidder by e-mail for signing.

Best regards, JSC KOREM



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