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ARTICLE · 27 FEBRUARY 2023

Kazakhstan's Grid Connection, Transmission, And Curtailment Risks

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PPA in Kazakhstan is executed with the Financial Settlement Center, which is an offtaker and only pays for the energy. The grid operator is a separate entity and is not a party to the PPA...

KazakhstanEnergy and Natural Resources
Raushana Chaltabayeva
Raushana Chaltabayeva

PPA in Kazakhstan is executed with the Financial Settlement Center, which is an offtaker and only pays for the energy. The grid operator is a separate entity and is not a party to the PPA, although it signs the grid connection, transmission and other kinds of arrangements with the project company. This structure causes confusions and is not investor friendly in a general mechanism for allocating risks. Apparently, in a model form of the PPA available in Kazakhstan, the below risks are not addressed at all.  

The connection to the electrical grid is one of the risks for the developer of a renewable energy project in Kazakhstan. The distribution of electricity will be delayed if the project cannot be connected on schedule, and this will further cause payment defaults for the energy delivered

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