Corporate PPA and Emissions Registration for Green Electricity - Institutional Development

The results of the study show that the mechanisms introduced to stimulate investment in 2011-2013 have proven their effectiveness - the capacity of renewable energy plants has grown from 94 MW (2011) to more than 1800 MW (2020), which has led to the growth of renewable energy sources to 3% of the share in the structure of electricity production. However, for further growth of renewable energy sources, there are a number of fundamental issues that require a systemic solution: 1) the need to create a Balancing Capacity Market, 2) investments to maintain reserve capacities, 3) the need to establish market tariffs, 4) modernization of existing and construction of new plants. Moreover, the current growth rates may be insufficient to achieve carbon neutrality goals.

BDC Consulting LLP, together with Renovatio and EDPR, have entered into a partnership in Kazakhstan to develop a 120 MW solar power plant located in the Kyzylorda region and directly connected to the KEGOC power grid.

The commercialization strategy will be based on a private Power Purchase Agreement (PPA) directly with the buyer. Although the Kazakh legal framework allows for private direct long-term agreements on the supply of renewable energy, there are no known precedents for this in the Republic of Kazakhstan. At present, all existing renewable facilities are involved through state support schemes (auctions for concluding PPAs with LLP "Settlement and Financial Center for Support of Renewable Energy Sources"). Therefore, LLP "BDC Consulting" is currently developing a business case for the implementation of this first-of-its-kind project with the support of a group of first-class external consultants.

Kazakhstan is actively implementing measures to regulate greenhouse gas emissions to achieve its goals of transition to a "green economy".

The use of renewable energy by industrial enterprises allows for a reduction in the volume of emissions that are subject to taxation. Moreover, tariffs also become competitive because environmental charges are zero. Developing a business towards renewable energy sources can increase shareholder value. The company achieves impressive results in strengthening its position on the stock market after abandoning the use of fossil fuels.

BDC Consulting LLP provides consulting services on registration of emissions by industrial enterprises when using "green electricity" to reduce their carbon footprint. Consulting concerns: gradual reduction of emissions, subsidies, carbon taxes, tariffs, mandatory disclosure of information related to the impact on the environment, and other regulations.