VI. KAZENERGY Eurasian Forum
Wind energy development in the emerging markets including Kazakhstan
Andreas Thomas, Senior Vice President Business Development
October 2011
Wind energy developments in emerging markets
Factors for market development
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Wind as natural and renewable resource
Political commitment and support to start the development of wind energy market
Legal framework with laws, incentive systems and procedures
Technical conditions – national grid system
Partners and conditions for financing projects and related businesses
Wind energy developments in Kazakhstan
Wind as renewable resource
Conditions in Kazakhstan
Wind potential
• Estimated with1820 bn kWh p.a.
• Acc. Results of UNDP wind energy program wind speeds between 5.9 and 9.7 m/s
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Vestas’ site hunt in general and for several projects verifies similar picture
Excellent conditions to develop wind energy in Kazakhstan
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Wind energy developments in Kazakhstan
Political commitment
Leading position in Central Asia in focus
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Political target to be the leading nation in energy and RES in Central Asia
“Electric power industry development program” – 1% or 1 bn kWh of generated power
by RES in 2014 possible
Political support and finance of the UNDP program to develop the wind energy market
Wind energy developments in Kazakhstan
Legal framework as basis for market implementation
Legal law, incentive system and procedures
Legal law
• “Promotion of Utilization of Renewable energies of Republic of Kazakhstan” from
October 2009 with the target of 5% of RES in 2024
Incentive system
• Application for project related tariff with TEO
• Advice from several international organization for fixed feed-in tariff acc. experiences in
countries like Germany, UK, Italy
Procedures
• Regulations available but lack of experiences at implementation
• Clarification on administrative, legal procedures and permitting guidelines
Improvements at tariff system and regulations would support
wind energy development
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Wind energy developments in Kazakhstan
Technical conditions
National Grid System
Best grid conditions
• National and unified grid system
• Clear system at ownerships at high, medium
and low voltage level
• Adequate capacity in whole grid system and
regions with good wind conditions
• Close grid connection points
• Updated technical equipment to avoid
energy losses and inefficiency
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Wind energy developments in Kazakhstan
Grid situation in Kazakhstan
• National Unified system with three independent
systems, but lack of link
• Large remote areas with good wind conditions
• Line losses of 25-50% due to very large
distances
• Aging transmission infrastructure
Program to improve
National Grid System started
Strong partners for financing of market development
National and International partners
Financing for wind energy projects
1. Understanding Capital Supply of Financial
Institutions
• International banks – available
• National, local banks
• Multilaterals available and interested
• ECAs from Western Europe
2. Understanding Customers Capital Demand equity and export financing
3. Matching Capital Supply and Capital Demand
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Wind energy developments in Kazakhstan
Financing of market development projects
• Grid development
• Infrastructure (transport, logistics)
• Production facilities
Multilaterals, e.g. EBRD, IFC available and
interested
Conclusions
Wind as natural and renewable resource
 excellent conditions
Political commitment and support to start the development of wind
energy market
 RES on the political agenda
Legal framework with laws, incentive systems and procedures
 good conditions with improvement
Technical conditions – national grid system
 Program to start improvements
Partners and conditions for financing projects and related businesses
 International and National partners
Excellent conditions to develop
wind energy market in Kazakhstan
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Wind energy developments in Kazakhstan
Thank you for your attention
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