Background

The objective of the project is to promote private sector investment in renewable energy sources in Kazakhstan to achieve the country’s 2030 and 2050 renewable energy targets. The project targets both large-scale and small-scale renewable energy sources. The goal of this project is to achieve transformation of the energy market in Kazakhstan by significantly increasing the scale of the use of renewable energy sources in electricity production, thereby increasing the share of renewable energy in the country's power generation mix from 1.1% in 2017 to 10% by 2030. To achieve its objective, the project includes activities to support renewable energy projects that are expected to bring about a collective GHG emission reduction of at least 460,000 tonnes of CO2. In addition, by the end of the project, the project would have supported the commissioning of 9.5 MW of direct, small-scale renewable energy system (RES) that will produce about 500 GWh of electrical energy.

The project is comprised of three components:

  • Component 1 – Large-Scale Renewable Energy: Policy and Financial Derisking Measures
  • Component 2 – Renewable Energy for Life: Policy Derisking
  • Component 3 – Renewable Energy for Life: Financial Derisking and Incentives

This consultancy assignment is part of Activity 1.1.1. under Component 1/Output 1.1. of the DREI Project.

Duties and Responsibilities

  1. Conduct an analysis of the preparation and conduct of RES auctions. The analysis should be carried out to cover the following:
  • Legal aspects;
  • Financial aspects;
  • Technical aspects;
  • Administrative aspects.
  1. Prepare information and analytical report based on the results of the analysis, with conclusions and recommendations to strengthen future auctions;
  1. Analyze the past RES auctions for the period 2018-2020 considering the following criteria:
  • Simplicity and information content of the registration procedure for participants on the trading platform, as well as the trading procedure itself;
  • Information content of the developed methodological support for holding auctions;
  • Reliability of the trading system;
  1. Prepare information and analytical report based on the results of the analysis of past auctions, with conclusions and recommendations based on lessons learned and points to consider and take into account for future auctions.
  1. Propose a mechanism for calculating tariff indexation for renewable energy projects for the period of construction of facilities (from the moment of the conclusion of the PPA and until the moment the facility is put into operation).
  1. Propose several approaches (at least two) to calculate the IRR (internal rate of return) for various renewable energy technologies based on various estimates for the marginal auction price for subsequent rounds of auction tenders for various types of renewable energy sources (based on the results of RE resource assessments in various regions of the country);
  1. Develop and propose alternative schemes for registration and transfer of the land plot/plots to the auction winner according to a simplified procedure as part of the preparation of the so-called. RES projects with documentation taking into account land legislation, for example, registration of plots for a special company SPV;
  1. The results of the work done should be presented and submitted for joint discussion at the Ministry of Energy of the Republic of Kazakhstan with the participation of interested parties, including the operator of the electricity and capacity market “KOREM” JSC, “FSC for RES support” LLP, associations. Conduct 2-3 rounds of joint discussions, incl. discussions of preliminary reports, before the final delivery of the work.

The Contractor must use the previously completed work within the framework of the UNDP / GEF Project "Derisking Renewable Energy Investment in Kazakhstan": "Recommendations on the methodology of RES auctions in Kazakhstan", "Research on the risks of investing in renewable energy in Kazakhstan".

For more detailed information, please refer to Terms of Reference 

Competencies

III. Competencies:

  • Excellent knowledge of legislative and other regulatory documents in the field of electricity, including renewable energy;
  • Excellent presentation and reporting skills;
  • Availability of a certificate of professional attestation, if applicable;
  • A list of similar services performed with the indication of the Customer, the name of the services/works, the year of the provision of services and the cost (if available)
  • Excellent knowledge of the Russian language.

Required Skills and Experience

. Academic Qualifications:

  • Master's degree in economics/management;

II. Years of experience:

  • At least 7 years of experience in the development of social and economic development plans;
  • At least 5 years of experience in the development of feasibility studies, business plans for projects in the field of renewable energy.
  • At least 5 years of experience as a consultant for the implementation of infrastructure (energy) projects, including renewable energy projects;
  • Experience in the preparation of analytical studies and methodological developments in the field of RES and the development of standards, methods, regulatory and technical documents in the field of RES.