COUNTRY | Kazakhstan
REGION | Asia
SECTOR | energy
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 2: Operation and maintenance, 2: Technological innovation, 3: Environmental Impact Assessment, 3: Environmental Impact Mitigation, 3: Emissions, 5: Job creation, 5: Capacity and institutional building, 6: Financial & debt sustainability, 6: Policy
Overview
Cost: USD 57.639 million
Size: 50 MW
Parties involved (public and private): Risen Energy (China) Co. Ltd. (The Developer), EBRD and Green Climate Fund (Lenders), Risen Energy (Hong Kong) Co. Ltd. (EPC Contractor), Financial Settlement Centre (the Offtaker).
Relevant contractual details (type, length etc.): 15 year PPA.
Context: Kazakhstan possesses significant renewable energy resources, however, currently over ca. 70% of electricity in the country is produced by coal-fired power plants constructed during the Soviet times. Development of Chulakkurgan Solar was fully in line with the country’s decarbonisation and attraction of FDI strategy.
Aim(s) of the project: The development of the Project is expected to have the following impact: Annual GHG emission savings; adding renewable electricity capacity to the grid; attraction of private investment; and job creation. The project is also aligned with Sustainable Development Goals through affordable and clean energy and climate action.
Timeline
The Project construction started in September 2019 and was completed in Q1 2020. The Project is expected to generate clean, sustainable electricity for 30 years.
Relevance to QII
As the first tracker based solar PV in Kazakhstan, Chulakkurgan Solar promoted technological innovation in the sector. This has translated into successful capacity building of the local staff, who were hired to operate the plant. The development of the Project further brought Kazakhstan to compliance with the Paris Agreement that calls for economy-wide target of 15%-25% reduction in GHG emissions by 2030 compared with 1990 levels.
Benefits
Chulakkurgan Solar is the first tracker-based project in Kazakhstan. The plant was successfully commissioned in Q1 2020 and has been supplying electricity to the grid since April 2020.
The Project is expected to produce emission savings in the amount of 66,998 tonnes of CO2 per annum. The Project supports the Kazakhstan’s targets on renewable energy generation, thus contributing to Kazakhstan’s shift to cleaner and more diversified energy balance away from coal dependency.
Metrics
Success is monitored via the following benchmarks:
- Annual savings of 66,998 tCO2 emissions.
- 50MWp of solar capacity introduced with Chulakkurgan Solar.
Name of Institution
EBRD
Website URL