Kazakhstan is working to improve its regulatory framework for renewable energy power purchase agreements (PPAs) in a bid to attract more investors and lenders. The proposed changes aim to increase contractual certainty, reduce investment risks and facilitate financing for new wind and solar projects.

Under the proposed amendments, power generation facilities that have supplied electricity under bilateral contracts for at least 36 months would be eligible to switch to selling their output to the country’s single electricity purchaser, the Financial Settlement Center for Renewable Energy Support (RFC), a subsidiary of Kazakhstan’s national grid operator, Kegoc JSC.

The mechanism would provide generators with an alternative offtake arrangement if their existing bilateral PPAs expire or their buyers stop purchasing electricity. By reducing counterparty and electricity sales risks, the proposed framework aims to improve revenue predictability, boost investor confidence and facilitate project financing.

However, the proposed provisions do not specify the pricing arrangements, contract duration or other terms governing electricity sales to RFC. These details will be critical in determining whether the mechanism improves project bankability.

The government is also preparing to introduce competitive auctions for energy storage capacity.

The planned auction framework is expected to provide greater clarity for private investment in energy storage. However, key details such as procurement volumes, contract structures, technical requirements and implementation timelines, have yet to be confirmed.

Kazakhstan’s pipeline of large-scale solar projects reached around 900 MW at the end of October, according to government figures.

The country’s installed solar capacity reached 1.37 GW in April, when total renewable energy capacity exceeded 3.7 GW. Renewables currently account for 8.5% of Kazakhstan’s electricity mix, according to government figures.

Kazakhstan aims to install at least 8.4 GW of new renewable energy capacity by 2035, including approximately 1.8 GW of solar.