On Support of the Use of Renewable Energy Sources

Updated Unofficial translation

The Law of the Republic of Kazakhstan dated 4 July 2009 No. 165-IV.

      Unofficial translation
      Information for users!
      "Adilet" Legal Information System also has a translation of The Law On Support of the Use of Renewable Energy Sources of the Republic of Kazakhstan provided by National Company KAZAKH INVEST JSC. 
      Note of the Republican Centre of Legal Information!
      See Article 12 of this Law of the Republic of Kazakhstan for the order of enforcement.

      This Law determines objectives, forms and directions of support of the use of renewable energy sources.

Chapter 1. GENERAL PROVISIONS

Article 1. The basic definitions used in this Law

      The following basic definitions shall be used in this Law:

      1) auction price is the price for the purchase of electric energy produced by the facility for the use of renewable energy sources, determined on the results of auction sales and not exceeding the level of the corresponding marginal auction price by the calculation and financial center;

      1-1) auction sales is a process organized and conducted by the auction sales organizer in an electronic system based on an auction and aimed at selection of projects on construction of new facilities for the use of renewable energy sources and determination of auction prices of electric energy produced by facilities for renewable energy sources, taking into account the plan of placement facilities for the use of renewable energy sources;

      1-2) organizer of auction sales is a legal entity, determined by the authorized body, carrying out organization and conduct of auction sales in accordance with the procedure provided for by this Law;

      1-3) qualified nominal consumers is a person or a group of persons that include nominal consumers and energy producing organizations using renewable energy sources and owning operating objects (commissioned after January 1st , 2018 and not included in the List of energy generating organizations using renewable energy sources by the authorized body) on the use of renewable energy sources on the right of ownership or on other legal basis, the generated electrical energy of which is fully consumed by this person or a group of persons or sold to consumers at contractual prices in accordance with concluded bilateral treaties;

      1-4) renewable energy sources are energy sources that are continuously renewed due to naturally occurring natural processes, which include the following types: solar energy, wind energy, hydrodynamic energy of water; geothermal energy: heat of soil, groundwater, rivers, reservoirs, as well as anthropogenic sources of primary energy resources: biomass, biogas and other fuels from organic waste used for production of electrical and / or thermal energy;

      2) nominal consumers of electrical energy from renewable energy sources (hereinafter - nominal consumers) are energy producing organizations that use coal, gas, sulfur-containing raw materials, oil products and nuclear fuel;

       subjects of electric energy market, acquiring electric energy from outside the Republic of Kazakhstan;

       hydroelectric power stations with facilities located in one hydroelectric complex, with a total capacity of over thirty five megawatts, with the exception of those commissioned after January 1st, 2016;

      3) tariff for the support of renewable energy sources is the tariff for sale by the calculation and financial center for the support of renewable energy sources of electric energy produced by the facilities for use of renewable energy sources established by the calculation and financial center for the support of renewable energy sources in accordance with the rules of determining the tariff for support of renewable energy sources approved by the authorized body;

      4) the calculation and financial center for the support of renewable energy sources (hereinafter the calculation and financial center) is a legal entity created by the system operator and determined by the authorized body that, in the manner provided for by this Law, carries out centralized purchase and sale of electric power produced by the facilities for use of renewable energy sources and supplied to the electric grids of the unified electric power system of the Republic of Kazakhstan;

      5) an energy producing organisation that uses renewable energy sources - a legal entity that carries out production of electric and (or) heat energy with the use of renewable energy sources;

      6) costs on supporting the use of renewable energy sources – the costs of the calculation and financial center for the purchase of electricity generated by the facilities for use of renewable energy sources, the costs of organizing balancing of electricity production and consumption, the costs of forming a reserve fund and the costs associated with implementation of its activities;

      7) the authorised body on implementation of state policy in the field of support of the use of renewable energy sources - a state body that carries out implementation of state policy in the field of support of the use of renewable energy sources;

      7-1) installation using renewable energy sources - technological and auxiliary equipment with the use of renewable energy sources, designed for generating electric and thermal energy;

      8) an object on use of renewable energy sources - technical devices intended for production of electric and (or) heat energy with the use of renewable energy sources and constructions and infrastructure interrelated with them that are technologically necessary for operation of object on use of renewable energy sources and being in a balance of owner of an object on use of renewable energy sources;

      8-1) target indicators for the development of renewable energy sector is the planned indicator of the share of electrical energy volume generated by renewable energy sources in total volume of electricity production, as well as the total installed capacity of renewable energy facilities, including by types;

      9) targeted assistance to individual consumers (hereinafter - targeted assistance) is compensation of a part of individual consumers costs for the purchase of facilities using renewable energy sources of Kazakhstani production by the state;

      9-1) renewable energy sources of Kazakhstani production - renewable energy sources produced by Kazakhstani producers and:

      defined in accordance with the customs legislation of the Customs Union and (or) the Republic of Kazakhstan as fully produced in the Republic of Kazakhstan;

      defined as subjected to sufficient processing in the Republic of Kazakhstan in accordance with the criteria of sufficient processing established by the legislation of the Customs Union and (or) the Republic of Kazakhstan;

      9-2) reserve fund is a fund formed by the calculation and financial center for the support of renewable energy sources, the money of which is stored in a special bank account and is used only to cover cash gaps and debts of the calculation and financial center to energy producing organizations using renewable energy sources arising due to non-payment or delay of payment by nominal consumers for the electricity supplied by them, produced by facilities for the use of renewable sources of energy;

      10) fixed tariff – a tariff on purchase of electric energy produced by objects on use of renewable energy sources by accounting and finance centre according to the procedure established by this Law;

      11) the authorised body - a central executive body that carries out administration and intersectoral coordination in the field of support of the use of renewable energy sources;

      11-1) maximum auction price is the maximum value of the auction price for electricity;

      12) individual consumer of electric and (or) heat energy (hereinafter - individual consumer) is an individual or legal entity consuming electrical and / or heat energy from the facility for the use of renewable energy sources operating autonomously in non-electrified settlements and (or) settlements where the centralized power supply is economically impractical;

      13) net consumer of electricity (hereinafter - net consumer) is an individual or legal entity who provides fully or partly its own consumption of electrical energy from the facility for the use of renewable energy sources owned by it on the right of ownership or other proprietary right connected to the distribution electric network and equipped with separate accounting systems for the volumes of electricity consumption from the network and the volumes of supply to it, with a total installed capacity of up to 100 kilos, including combined installation of renewable energy sources;

      14) consumption zone of electric energy - a part of unified electric energy system of the Republic of Kazakhstan, which has no restrictions of technical nature, preventing consumption of energy sources produced by object on use of renewable energy sources.

      Footnote. Article 1 is in the wording of the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the Laws of the Republic of Kazakhstan dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after the day its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 2. The legislation of the Republic of Kazakhstan in the field of support of the use of renewable energy sources

      1. The legislation of the Republic of Kazakhstan in the field of support of the use of renewable energy sources is based on the Constitution of the Republic of Kazakhstan, consist of this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. Social relations arising in the field of manufacturing and turnover of biofuel shall be regulated by the legislation of the Republic of Kazakhstan on the state regulation of manufacturing and turnover of biofuel.

      3. Social relations arising in the process of production, transmission and consumption of electric and (or) heat energy and that are not regulated by this Law, shall be regulated by the legislation of the Republic of Kazakhstan on electric power industry.

      3-1. The provisions of this Law regulating the procedure for application of fixed tariffs and auction prices for the purchase of electricity produced by renewable energy sources do not apply to:

      energy producing organizations having facilities for the use of renewable energy sources which operating term exceeded the payback period established in the feasibility study approved and agreed with the authorized body or local executive body;

      hydroelectric power stations with installations located in one hydroelectric complex, with a total capacity of over thirty five megawatts and (or) reservoirs providing more than a daily period of regulation, with the exception of those commissioned after January 1st , 2016.

      3-2. The provisions of this Law relating to qualified nominal consumers apply to a group of persons if one of such persons is established control with respect to another person, and if such persons are under the control of one person.

      Control is understood as the possibility of an individual or a legal entity, directly or indirectly (through a legal entity or through several legal entities) to determine decisions taken by another legal entity through one or more of the following actions:

      1) disposal of more than fifty percent of voting shares (stakes in the authorized capital, units) of a legal entity;

      2) exercising the functions of the executive body of the legal entity.

      A group of persons is treated as a single qualified nominal consumer.

      4. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, then the rules of an international treaty shall be applied.

      Footnote. Article 2 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2013 № 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Chapter 2. STATE REGULATION IN THE FIELD OF SUPPORT OF THE USE OF RENEWABLE ENERGY SOURCES

Article 3. Objectives and forms of state regulation in the field of support of the use of renewable energy sources

      1. State regulation in the field of support of the use of renewable energy sources shall be carried out in order to create favourable conditions for production of electric and (or) heat energy with the use of renewable energy sources to reduce energy consumption of economy and influence of electric and (or) heat energy production sector on environment and increase the use shares of renewable energy sources during production of electric and (or) heat energy.

      2. State regulation in the field of support of the use of renewable energy sources for production of electric and (or) heat energy shall include:

      1) approval and implementation of the plan of placement facilities for the use of renewable energy sources, taking into account the targets indicators for the development of renewable energy sector;

      1-1) establishment of fixed tariffs and marginal auction prices;

      1-2) provision of targeted assistance;

      2) Is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012);

      3) Is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      4) creating conditions for training and education of Kazakhstani personnel and conducting of scientific research in the field of use of renewable energy sources;

      5) technical regulation;

      6) adoption of regulatory legal acts in the field of use of renewable energy sources.

      Footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated15.07.2011 No 461-IV (shall be enforced from 30.01.2012); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 4. Principal directions of state regulation in the field of support of the use of renewable energy sources

      State regulation in the field of support of the use of renewable energy sources is carried out in the following principal directions:

      1) creation of favourable conditions for construction and operation of objects on use of renewable energy sources;

      2) stimulation of production of electric and (or) heat energy with the use of renewable energy sources;

      3) provision of investment preferences to legal entities that carry out the design, construction and operation of objects for the use of renewable energy sources, in accordance with the Entrepreneurial Code of the Republic of Kazakhstan;

      4) creation of favourable conditions for effective integration of objects on use of renewable energy sources into unified electric energy system and heat system and market of electric and heat energy;

      5) assistance in performance of international obligations of the Republic of Kazakhstan on reducing emission of greenhouse gases.

      Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.10.2015 № 376-V (shall be enforced from 01.01.2016); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication).

Article 5. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:

      1) develop principal directions of state policy in the field of use of renewable energy sources;

      2) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      3) - 7) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after the day its first official publication);

      7-1) approve the rules for determining fixed tariffs and marginal auction prices;

      7-2) approve the fixed tariffs;

      7-3) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after the day its first official publication);
      8) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after the day its first official publication);

      9) perform other functions, imposed thereon by the Constitution, this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

      Footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 05.07.2011 No 452-IV (shall be enforced from 13.10.2011); as amended by the Laws of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 6. Competence of the authorised body

      The authorised body shall:      

      1) implement state policy in the field of support of the use of renewable energy sources;

      2) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      3) develops and approves technical regulations in the field of the use of renewable energy sources and makes proposals for the improvement of national standards in the field of design, construction, operation and safety of objects for the use of renewable energy sources for production of electrical and (or) thermal energy;

      4) develops and approves normative legal acts in the field of use of renewable energy sources;

      5) approves the plan of placement facilities for the use of renewable energy sources, taking into account the target indicators for the development of the renewable energy sector;

      5-1) develops and approves the rules for formation of a plan of placement facilities for the use of renewable energy sources;

      5-2) approves the target indicators for the development of the renewable energy sector;

      5-3) develops and approves the procedure for recalculation and redistribution of the corresponding share of electric energy for a qualified nominal consumer based on the results of a calendar year by the calculation and financial center;

      5-4) coordinates the qualified nominal consumers with the type of renewable energy sources, capacity and location of the object for the use of renewable energy sources in accordance with the plan of placement facilities for the use of renewable energy sources and technical capabilities of the unified electric power system of the Republic of Kazakhstan;

      5-5) develops and approves the rules for organization and conduct of auction sales, including the qualification requirements for the auction participants, the content and procedure for filing an application, the types of financial security of the application for participation in the auction and the conditions for their entry and return, the procedure for summing up the results and determining the winners;

      5-6) determines the organizer of the auction sales;

      5-7) determines the terms of the auction sales, planned capacity by the type of renewable energy sources, the proposed zones (areas) of placement facilities for the use of renewable energy sources in accordance with the plan of placement facilities for the use of renewable energy sources;

      5-8) approves the marginal auction prices;

      6) is excluded by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      7) approve the procedure and monitors the use of renewable energy sources;

      8) develops and approves the procedure and terms for determining the nearest point of connection to electric or heat grids and connecting facilities for the use of renewable energy sources;

      8-1) is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 № 159-V (shall be enforced upon expiry of ten calendar days after the day its first official publication);

      9) is excluded by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      9-1) develops and approves a standard agreement on connecting facilities for the use of renewable energy sources, as well as the procedure and terms for its conclusion;

      9-2) develops and approves the rules for formation and use of the reserve fund;

      10) develops and approves rules for the centralized purchase and sale of electric energy produced by facilities for the use of renewable energy sources by the calculation and financial center, the corresponding standard forms of contracts of the calculation and financial center with energy-producing organizations using renewable energy sources, nominal consumers and qualified nominal consumers;

      10-1) develops rules for determining fixed tariffs, develops and approves the rules for determining the tariff for the support of renewable energy sources;

      10-2) is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 № 159-V (shall be enforced upon expiry of ten calendar days after the day its first official publication);

      10-3) develops and approves the rules for formation of a list of energy-producing organizations using renewable energy sources and places it on its Internet resource;

      10-4) is excluded by the Law of the Republic of Kazakhstan dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication);

      10-5) determines the calculation and financial center;

      10-6) approves the rules for functioning of balancing electricity market;

      10-7) develops and approves the rules for providing targeted assistance to individual consumers;

      11) coordinate the interaction of state bodies, subjects of private entrepreneurship and scientific and scientific and technical activity in relation to development and use of renewable energy sources;

      12) carry out international cooperation in the field of the use of renewable energy sources;

      13) carry out other powers provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

      Footnote. Article 6 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2011 No 452-IV (shall be enforced from 13.10.2011); dated 10.07.2012 No. 31-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.01.2014 № 159-V (shall be enforced upon expiry of ten calendar days after the day its first official publication); dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after the day its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 6-1. Competence of the authorised body on implementation of state policy in the field of support of the use of renewable energy sources

      The authorised body on implementation of state policy in the field of support of the use of renewable energy sources shall:

      1) implement state policy in the field of support of the use of renewable energy sources;

      2) carry out monitoring of connection of objects on use of renewable energy sources to electric or heat networks of energy producing organisations in accordance with the legislation of the Republic of Kazakhstan on electric power industry;

      3) carry out other powers provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

      Footnote. Chapter 2 is supplemented by Article 6-1 in accordance with the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 7. Competence of local executive bodies of regions, city of republican significance and capital

      Local executive bodies of regions, city of republican significance and the capital shall:

      1) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      2) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      3) coordinate the projects of construction of facilities for the use of renewable energy sources located in the subordinated territory for production of thermal energy supplied to the centralized heating system;

      3-1) reserve and provide land plots for construction of facilities for the use of renewable energy sources in accordance with the land legislation of the Republic of Kazakhstan and the plan for placement of facilities for the use of renewable energy sources;

      3-2) provide targeted assistance to individual consumers;

      4) carry out other powers imposed on local executive bodies by the legislation of the Republic of Kazakhstan in behalf of local state administration.

      Footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 05.07.2011 No 452-IV (shall be enforced from 13.10.2011); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.12.2014 № 269-V (shall be enforced from 01.01.2015); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication).

Article 7-1. Obligations of participants in production, transmission and purchase of electrical energy produced by renewable energy sources

      1. Energy-transfer organizations, to which grids facilities for the use of renewable energy sources are connected, are obliged to submit information on the volumes of electric power supplied by the facilities for the use of renewable energy sources in their grids, based on the readings of the devices for commercial metering of electrical energy to the calculation and financial center on a monthly basis.

      2. Nominal consumers are obliged:

      1) to conclude annually agreements with the calculation and financial center for the purchase of electric energy produced by energy producing organizations using renewable energy sources in accordance with the standard form and pay not later than thirty calendar days after the end of the month of delivery;

      2) to provide the calculation and financial center with monthly information on the forecast volumes of generation, supply in the grid, delivery to energy transmission organizations or reception from outside the Republic of Kazakhstan of electric energy for ten calendar days prior to the delivery month;

      3) to send information to the calculation and financial center on the forecast volumes of generation, supply in the grid, and the supply to the energy transmission organizations of electric power for the coming year annually, by the 20th of December.

      2-1. Qualified nominal consumers bear the obligations stipulated by subparagraphs 2) and 3) of clause 2, as well as by paragraphs 6, 6-1, 6-2 and 8 of this article.

      Qualified nominal consumers are obliged to conclude annually agreements with the calculation and financial center for the purchase of electric energy produced by energy producing organizations using renewable energy sources in accordance with the standard form.

      3. The Calculation and Financial Center shall:

      1) purchase, in the order established by this Law, from the energy producing organizations using renewable energy sources, the electric energy produced by the facilities for the use of renewable energy sources and supplied by them to the unified electric power system of the Republic of Kazakhstan, at a fixed tariff, acting on the date of conclusion of the contract of sale and purchase between the calculation and financial center and the energy producing organization using renewable energy sources, taking into account the indexation provided for in paragraph 2 of Article 8-1 of this Law and pay not later than fifteen working days after the expiration of the payment period established by for nominal consumers;

      1-1) buy, in the order established by this Law, from the energy producing organizations using renewable energy sources, the electric energy produced by the facilities for the use of renewable energy sources and supplied by them to the unified electric power system of the Republic of Kazakhstan, at auction prices determined by the results of the auction sales, taking into account the indexation provided for in paragraph 2 of Article 8-1 of this Law, and pay not later than fifteen working days after the expiry of the term rate established for nominal consumers;

      2) sell, in the order established by this Law, electric energy purchased from energy producing organizations using renewable energy sources to nominal consumers at a tariff for the support of renewable energy sources in accordance with the zone of electric energy consumption;

      3) determine the predicted for the year ahead costs of supporting the use of renewable energy sources per one kilowatt-hour of electricity produced from all types of renewable energy sources and supplied to the unified electric power system of the Republic of Kazakhstan and publish relevant information on its Internet resource not later than the fifteenth of January of the forecast year.

      4. The calculation and financial center concludes contracts for the purchase and sale of electric power with energy producing organizations using renewable energy sources, which support is carried out in accordance with this Law and the authorized body included in the list of energy producing organizations using renewable energy sources for a period of fifteen years.

      5. The calculation and financial center is obliged to audit the annual financial statements in accordance with the Law of the Republic of Kazakhstan "On Auditing" and present its results to the authorized body.

      6. Energy-producing organizations that use renewable energy sources are obliged:

      1) to provide monthly the calculation and financial center with information on the forecast volumes of generation, supply in the electricity grid for ten calendar days prior to the delivery month;

      2) to provide monthly the calculation and financial center with information on the actual daily output, electricity supply in the grid not later than the fifth day of the month following the delivery month;

      3) to send information to the calculation and financial center on the forecast volumes of electricity generation and supply in the grid for the coming year, broken down by months annually, by the 20th of December;

      4) to submit to the regional electric company and (or) the system operator daily and monthly (for ten calendar days before the beginning of the month) schedules of electricity supply;

      5) to ensure compliance with daily schedules for production of electricity in accordance with the legislation of the Republic of Kazakhstan.

      6-1. Along with the duties specified in paragraph 6 of this article, energy producing organizations that use renewable energy sources with an installed capacity of at least one megawatt are obliged to comply with the operating modes set by the system operator of generating installations of the power plant in accordance with the legislation of the Republic of Kazakhstan.

      6-2. Hydroelectric power stations equipped with reservoirs are obliged to carry out intraday regulation of electric power generation in accordance with the orders of the system operator when implementing centralized operational dispatch management of the unified electric power system of the Republic of Kazakhstan within the framework of the water regime approved by the authorized body in the field of use and protection of water fund.

      7. Energy producing organizations that use renewable energy sources submit an application for concluding a purchase and sale agreement with the calculation and financial center for the purchase of electric energy produced by renewable energy sources within sixty calendar days after their inclusion in the list of energy producing organizations using renewable energy sources.

      The energy producing organization using renewable energy sources provides the following materials and documents to the application for concluding of a contract for the sale and purchase of electricity generated by renewable energy sources:

      1) copies of title documents;

      2) information on the volumes of supplied electricity.

      8. All energy producing organizations that use renewable energy sources, including energy producing organizations that are part of a qualified nominal consumer, must have an automated system of commercial accounting at their facility for the use of renewable energy sources. The automated system of commercial accounting should be able to remotely transmit data to the regional dispatch centers.

      Footnote. Chapter 2 is supplemented by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2013 № 128-V (shall be enforced upon expiry of six months after its first official publication); as amended by the Laws of the Republic of Kazakhstan dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Chapter 3. SUPPORT OF THE USE OF RENEWABLE ENERGY SOURCES

Article 8. Support during designing and construction of objects on use of renewable energy sources

      Footnote. Article 8 is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 8-1. Fixed rate and auction price

      Footnote. The title of Article8-1 in the new wording of the Law of the Republic of Kazakhstan dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

      1. Fixed tariffs shall be approved by the Government of the Republic of Kazakhstan by validity of fifteen years for each type of renewable energy sources, the support of which is provided by the documents of the National Planning System of the Republic of Kazakhstan.

      2. The approved fixed tariffs and auction prices are annually indexed in the manner determined by the Government of the Republic of Kazakhstan.

      The approved fixed tariffs, depending on the structure of project financing and economic feasibility, are subject to annual indexation taking into account the change in the exchange rate of the national currency to foreign currencies in the order determined by the Government of the Republic of Kazakhstan.

      3. In order to achieve the target indicators stipulated by the documents of the state planning system of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan has the right to adjust the levels of previously approved fixed tariffs annually. The Act of the Government of the Republic of Kazakhstan on the adjustment of approved fixed tariffs is put into effect not earlier than two years after its first official publication in periodicals distributed throughout the Republic of Kazakhstan in Kazakh and Russian.

      To encourage the introduction of facilities for the use of renewable energy sources of low power, as well as providing electricity to areas with less favorable natural, climatic, technical or other conditions for the development of renewable energy sources, fixed tariffs are differentiated depending on the installed capacity of renewable energy sources.

      This paragraph does not apply to existing contracts for the sale and purchase of the calculation and financial centre with energy producing organizations that use renewable energy sources.

      Footnote. Chapter 3 is supplemented by Article 8-1 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the Laws of the Republic of Kazakhstan dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 9. Support during sale of electric and (or) heat energy produced by objects on use of renewable energy sources

      1. An energy producing organisation that uses renewable energy sources, shall have the right to sell produced electric energy at its discretion by one of the following options:

      1) to the calculation and financial center at a fixed tariff effective as of the date of concluding the purchase and sale agreement between it and the settlement and financial center, or at the auction price determined on the results of auction sales, taking into account the indexation provided for by paragraph 2 of Article 8-1 of this Law ;

      2) to consumers at contract price according to concluded bilateral agreements in accordance with the legislation of the Republic of Kazakhstan on electric power industry.

      An energy producing organisation that uses renewable energy sources and carries out activity in accordance with subparagraph 2) of part one of this paragraph, shall not have the right to change to sale of produced electric energy by option provided by subparagraph 1) of part one of this paragraph.

      2. Expenses for support of use of renewable energy sources shall be distributed by accounting and finance centre between contingent consumers of electric energy proportionally to share of their release to networks.

      At the same time, the costs of supporting the use of renewable energy sources are not distributed by the calculation and financial center to a qualified nominal consumer, except for the case provided for in paragraph 2-1 of this article.

      2-1. The calculation and financial center, in accordance with the procedure approved by the authorized body, recalculates and redistributes the corresponding share of electric energy to a qualified nominal consumer in the case when the ratio of an annual volume of electricity generation (or volume for a shorter period in the generation of electricity less than one calendar year) by the facility for use of renewable energy sources commissioned by a qualified nominal user, to the volume of supply to the network by a nominal consumer will be less than each of the two following indicators:

      1) the actual indicator of the share electrical energy volume generated by renewable energy sources in the total volume of electricity production;

      2) the target indicator, stipulated by the documents of the System of state planning of the Republic of Kazakhstan.

      3. In case that the amount of money received by the calculation and financial center from the sale of electricity from renewable energy sources in accordance with subparagraph 2) of paragraph 3 of Article 7-1 of this Law is less than or exceeds the amount necessary to recover the costs of supporting the use of renewable energy sources in the current quarter, the calculation and financial center recalculates and redistributes costs between nominal electricity consumers for the next quarter.

      In case of shortage of money from a nominal consumer due to its withdrawal from the market, liquidation, the calculation and financial center distributes the corresponding share of electricity that was calculated for the above consumer to all nominal consumers in proportion to their consumption volume in relation to the total volume of electricity consumption in the Republic of Kazakhstan.

      4. Expenses of contingent consumer on a purchase from accounting and finance centre of electric energy produced by objects on use of renewable energy sources, shall be compensated by customers of electric energy of this contingent consumer, proportionally to the relevant share of volume of purchasing electric energy of a customer in respect of overall volume of electric energy, released into network.

      4-1. The costs of a nominal consumer for the purchase of electrical energy produced by the facilities for the use of renewable energy sources from the calculation and financial center are taken into account when determining the value of the marginal tariff for electricity.

      5. Sale and purchase contracts of heat energy produced by energy producing organisations that use renewable energy sources shall be concluded for the period of no less than the payback period of construction project on use of renewable energy sources, determined in technical and economic justification of construction project on use of renewable energy sources.

      6. All the heat energy produced by an object on use of renewable energy sources and supplied to centralised heat supply system of inhabited locality with parameters that correspond to parameters of coolant in centralised heat supply system, shall be purchased by energy supplying organisations of this inhabited locality.

      The costs of heat energy produced by the facility for the use of renewable energy sources is included in the tariff of the energy supply organization in the order established by the legislation of the Republic of Kazakhstan on natural monopolies.

      Energy producing organisation that uses renewable energy sources shall agree with energy supplying organisation the periods of delivery of heat energy in the centralised heat supply system depending on the sessional nature of heat supply.

      Energy producing organisation that uses renewable energy sources shall be excused from paying services of energy transmitting organisations on transmission of heat energy during supply of heat energy.

      7. Energy transmitting organisations shall provide free access for a transmission through the networks by energy producing organisations that use renewable energy sources, in accordance with the legislation of the Republic of Kazakhstan.

      Energy producing organisations that use renewable energy sources shall be excused from paying services of energy transmitting organisations on transmission of electric energy during supply of electric energy.

      8. Financial settlement of electrical energy imbalances from facilities for the use of renewable energy sources is carried out by the calculation and financial center under the tariff for the support of renewable energy sources in accordance with the rules for functioning of the balancing electricity market approved by the authorized body.

      9. The net-consumer pays the electric power supply consumed by the energy-supplying organization servicing it at its current tariff, consumed during the billing period from the electric grid, minus the volume supplied to the power grid in the same period.

      In case of exceeding the volume of electric energy supplied by the net consumer for the billing period to the electric grid, over the amount of electric energy consumed by it for the same period from the grid, the serving power supply organization pays to the net consumer at its current tariff for sale the supplied electric energy by the net consumer in the volume of the above excess.

      Purchase and sale of electricity from net consumers by the power supply organization is carried out in accordance with the Rules for the purchase and sale of electricity from net consumers, developed and approved by the authorized body.


      10. The state provides targeted assistance to individual consumers in the amount of fifty percent of the cost of installations for the use of renewable energy sources with a total capacity of not more than five kilowatts in the manner determined by the authorized body. The targeted assistance is paid after the commissioning of installation for the use of renewable energy sources.

      11. An individual consumer received targeted assistance on acquisition of installation on use of renewable energy sources, shall not have the right to carry out sale of electric and (or) heat energy produced on this installation to other consumers.

      Footnote. Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the Laws of the Republic of Kazakhstan dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after the day its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 28.12.2016 № 34-VI (shall be enforced from 01.01.2017); dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 10. Support during connection of objects on use of renewable energy sources to electric or heat networks of energy transmitting organisation and transmission of electric and (or) heat energy

      1. Newly constructed facilities for the use of renewable energy sources, as well as reconstructed facilities, irrespective of the commissioning period, are connected to the nearest point of the electric or thermal grids of energy transmission organization, corresponding to the voltage class or the coolant parameters in the common heat supply network.

      1-1. An energy producing organization planning the creation (expansion, reconstruction) of new or existing facilities for the use of renewable energy sources, and an energy transmission organization, to which electrical grids the facilities for the use of renewable energy sources are directly connected, are obliged to conclude a standard agreement on connection of facilities for the use of renewable energy sources in the manner and within the terms specified by the authorized body for implementation of the state policy in the field of supporting the use of renewable energy sources jointly with the authorized body in the electric power industry. At the same time, the concluded contract provides for the responsibility of the energy producing organization that plans to create (expand, reconstruct) new or existing facilities for the use of renewable energy sources and the energy transmission organization, to which electrical grids the renewable energy facilities are directly connected, for failure to fulfill or improperly fulfill its conditions .

      2. Energy transmitting organisations shall provide unimpeded and non-discriminatory determination of the closest access point of electric or heat networks that corresponds to the voltage class or parameters of the coolant in the common heat supply network, and connection of objects on use of renewable energy sources.

      3. In the case of limiting the capacity of electric networks of energy transmission organizations, the priority should be given to the transmission of electrical energy produced by an energy producing organization using renewable energy sources. This requirement does not apply to the periods of liquidation of emergency violations in the unified power system of the Republic of Kazakhstan by the system operator.

      4. When forming daily dispatch schedules for the supply and consumption of electrical energy to the electric grids of the unified electric power system of the Republic of Kazakhstan, supplies from facilities for the use of renewable energy sources shall be included in it in priority order.

      5. In case of expansion and reconstruction of existing electric and heat networks by power transmission organizations to connect facilities for the use of renewable energy sources, the relevant costs are included in the tariffs of energy transmission organizations in the manner established by the legislation of the Republic of Kazakhstan on natural monopolies.

      6. The costs associated with the construction of a network from the facility for the use of renewable energy sources to the point of connection to the network of the energy transmission organization, with connection to the grid, the transfer of energy from the facility for the use of renewable energy sources to the point of connection to the network of the energy transmission organization and measurement of the supplied energy are assigned on the owner of the facility for the use of renewable energy sources.

      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2013 № 128-V (shall be enforced upon expiry of six months after its first official publication); dated 28.04.2016 № 506-V (shall be enforced upon expiry of sixty calendar days after the day its first official publication); dated 28.12.2016 № 34-VI (shall be enforced from 01.01.2017).

Chapter 4. FINAL AND TRANSITIONAL PROVISIONS

      Footnote. The title of Chapter 4 in the new wording of the Law of the Republic of Kazakhstan dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 11. Liability for violation of the legislation of the Republic of Kazakhstan in the field of support of the use of renewable energy sources

      Violation of the legislation of the Republic of Kazakhstan in the field of support of the use of renewable energy sources shall entail liability established by the Laws of the Republic of Kazakhstan.

Article 11-1. Transitional provisions

      The norms of this Law regulating the procedure for application of fixed tariffs for the purchase of electricity produced by renewable energy sources are only applicable to contracts concluded by the calculation and financial center with energy producing organizations using renewable energy sources before the provisions on application of the auction prices.

      Footnote. Chapter 4 is supplemented by Article 11-1 in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

Article 12. The order of the entry into force of this Law

      This Law shall enter into force upon expiration of ten calendar days after the day of its first official publication.

      Footnote. Article 12 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 89-VI (shall be enforced upon expiry of ten calendar days after the day its first official publication).

The President


of the Republic of Kazakhstan

N. Nazarbayev


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