On Support of the Use of Renewable Energy Sources

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

Unofficial translation

      Note of the Republican Centre of Legal Information!
      The order of enforcement of the Law of the Republic of Kazakhstan see Article 12

      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) renewable energy sources - energy sources that are continually replenished due to natural processes flowing unforced, including the following types: energy of sunlight, wind energy, hydrodynamic energy of water; geothermal energy: heat of ground, ground water, rivers, basins, as well as anthropogenic sources of primary energy sources: biomass, biogas and other fuel from organic waste used for production of electric and (or) heat energy;
      2) contingent consumers of electric energy from renewable energy sources (hereinafter - contingent consumers) - energy producing organisations that use coal, gas, oil products and nuclear fuel;
      subjects of electric energy market that acquire electric energy beyond the Republic of Kazakhstan;
      hydroelectric power stations with installations located in one hydro system, with a total capacity of more than thirty five megawatt;
      3) tariff for support of renewable energy sources – a tariff for a sale of electric energy produced by objects on use of renewable energy sources by accounting and finance centre on support of renewable energy sources, established by accounting and finance centre on support of renewable energy sources in accordance with the rules of determination of a tariff on support of renewable energy sources approved by the Government of the Republic of Kazakhstan;
      4) accounting and finance centre on support of renewable energy sources (hereinafter - accounting and finance centre) - a legal entity that established by a system operator and determined by the Government of the Republic of Kazakhstan and that carries out centralised purchase and sale of electric energy, produced by objects on use of renewable energy sources and delivered to electric networks of unified electric energy system of the Republic of Kazakhstan according to the procedure provided by this Law;
      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) expenses for support of the use of renewable energy sources - expenses of accounting and finance centre on a purchase of electric energy produced by objects on use of renewable energy sources, expenses for services on organising of production-consumption balancing of electric energy and expenses related to carrying out its activity, determined in accordance with the procedure of price determination, established by the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets;
      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;
      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;
      9) targeted assistance to individual consumers (hereinafter - targeted assistance) - compensation by the state for a part of expenses of individual consumers in relation to acquisition of installations on the use of renewable energy sources from Kazakhstani producers;
      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;
      12) an individual consumer of electric and (or) heat energy (hereinafter - an individual consumer) - an individual that consumes electric and (or) heat energy from object on use of renewable energy sources, operating in autonomous mode in unelectrified inhabited localities and (or) settlements, where the centralised electric supply is economically unfeasible;
      13) a net consumer of electric energy (hereinafter - a net consumer) - an individual that provides wholly or partially its personal consumption of electric energy from object on use of renewable energy sources, connected to electrical distribution systems and equipped by separate accounting system of volumes of consumption of electric energy out of the network and volume of supply into it, owned by him as property;
      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).

      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. Provisions of this Law that regulate procedure for use of fixed tariffs for a purchase of electric energy produced by objects on use of renewable energy sources shall not extend to:
      energy producing organisations, having objects on use of renewable energy sources, operating life of which exceeded payback period, established in technical and economic justification approved by and agreed with the authorised body or local executive body;
      hydroelectric power station with installations located in one hydro system, with a total capacity of more than thirty five megawatt and (or) with basins that provide more than daily period of regulating.
      Conformity of hydroelectric power stations to the specified parameters shall be determined by the authorised body according to rules provided by subparagraph 8) of Article 5 of this Law.
      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.

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 sitting the objects on use of renewable energy sources;
      1-1) establishment of fixed tariffs;
      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).

      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 designing, construction and operation of objects on use of renewable energy sources in accordance with the legislation of the Republic of Kazakhstan on investments;
      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).

      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) adopt regulatory legal acts of the Republic of Kazakhstan in the field of use of renewable energy sources;
      4) approve technical regulations in the field of use of renewable energy sources;
      5) approve the procedure, deadlines for agreeing and approving technical and economic justification and construction projects of objects on use of renewable energy sources for heat supply;
      6) approve the procedure for carrying out monitoring of use of renewable energy sources;
      7) approve the procedure and deadlines of determination of the closest access point to electric or heat networks and connection of objects on use of renewable energy sources;
      7-1) approve the rules of determination of the fixed tariffs and tariff on support of renewable energy sources;
      7-2) approve the fixed tariffs;
      7-3) determine an account and finance centre;
      8) approve the rules of centralised purchase and sale by accounting and finance centre of electric energy produced by objects on use of renewable energy sources, as well as the relevant standard forms of contracts of accounting and finance centre with energy producing organisations that use renewable energy sources, and with contingent consumers;
      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).

      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) develop technical regulations in the field of the use of renewable energy sources and submit proposals on improvement of national standards in the field of designing, construction, operation and technical safety of objects on use of renewable energy sources for production of electric and (or) heat energy;
      4) develop regulatory legal acts in the field of use of renewable energy sources;
      5) approve a plan of sitting of objects on use of renewable energy sources;
      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) carry out monitoring of the use of renewable energy sources;
      8) develop procedure and deadlines of determination of the closest access point to electric or heat networks and connection of objects on use of renewable energy sources;
      8-1) submit proposal to the Government of the Republic of Kazakhstan on determination of accounting and finance centre;
      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);
      10) develop the rules of centralised purchase and sale by accounting and finance centre of electric energy produced by objects on use of renewable energy sources, as well as the relevant standard forms of contracts of accounting and finance centre with energy producing organisations that use renewable energy sources and with a contingent consumer;
      10-1) develop the rules of determination of the fixed tariffs and tariff on support of renewable energy sources;
      10-2) submit proposal on approval of the fixed tariffs to the Government of the Republic of Kazakhstan;
      10-3) keep a record and publish the list of energy producing organisations that use renewable energy sources on its website;
      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).

      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) agree construction projects of objects on use of renewable energy sources for production of heat energy, supplied in a system of centralised heat supply;
      3-1) reserve and provide land plots for construction of objects on use of renewable energy sources in accordance with the land legislation of the Republic of Kazakhstan and the plan of sitting;
      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).

      Note of RCLI!
      It is provided to supplement Chapter 2 by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of six months after 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 tariff

      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. Approved fixed tariffs shall be annually indexed to the rate of inflation according to the procedure defined by the Government of the Republic of Kazakhstan.
      3. In order to achieve the performance targets, provided by the documents of the National Planning System of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan shall have the right to adjust the levels of early approved fixed tariffs once a three years. The act of the Government of the Republic of Kazakhstan on adjustment of early approved fixed tariffs shall enter into force not earlier than one year after its first official publication in periodicals distributed on the whole territory of the Republic of Kazakhstan, in Kazakh and Russian languages.
      The operation of this paragraph shall not extend to effective sale and purchase contracts of accounting and finance centre with energy producing organisations 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).

      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 accounting and finance centre according to the fixed tariff which is in effect on a date of conclusion of sale and purchase contract between it and accounting and finance centre considering indexation provided 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.
      3. In case a sum of money received by accounting and finance centre from the sale of electric energy from renewable energy sources in accordance with subparagraph 2) of paragraph 3 of Article 7-1 of this Law is less or exceeds the value required for compensation for expenses on support of the use of renewable energy sources in a current month, an accounting and finance centre shall perform re-calculation and re-distribute expenses between contingent consumers of electric energy on a following month.
      In case of money deficiency from a contingent consumer for the reason of his quit from a market, liquidation, an accounting and finance centre shall distribute the relevant share of electric energy that was calculated for a consumer mentioned above, to all contingent consumers, proportionally to their volume of consumption in respect of overall volume of consumption of electric energy 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.
      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.
      Expenses for heat energy produced by an object on use of renewable energy sources shall be included in a tariff of energy supplying organisation according to the procedure established by the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets.
      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 regulation of disbalances of electric energy from objects on use of renewable energy sources shall be carried out by accounting and finance centre according to the tariff on support of renewable energy sources in accordance with the rules of operation of a balanced market of electric energy approved by the Government of the Republic of Kazakhstan.
      9. A net consumer shall pay to energy supplying organisation that provides services according to its current tariff for a volume of electric energy consumed by him from electric network during accounting period with the deduction of volume, supplied by a net consumer to electric network within the same period.
      In case of excess of the volume of electric energy, supplied into electric network by a net consumer within accounting period over the volume of electric energy, consumed by him out of network within the same period, an energy supplying organisation that provides services to a net consumer shall pay to net consumer according to a current organisation tariff on sale of electric energy supplied by a net consumer in a volume of excess mentioned above, but not more than five hundred kilowatt-hours per month.
      10. The state shall provide a targeted assistance to individual consumers in amount of fifty percent from the value of installations on use of renewable energy sources with a total capacity of no more than five kilowatt according to the procedure defined by the Government of the Republic of Kazakhstan. Targeted assistance shall be paid after putting into service of installation on 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).

      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

      Note of RCLI!
      It is provided to amend paragraph 1 by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 128-V (shall be enforced upon expiry of six months after its first official publication).

      1. New objects on use of renewable energy sources, as well as reconstructed objects regardless the period of putting into service shall be connected to the closest access point of electric or heat networks of energy transmitting organisation that corresponds to the voltage class or parameters of the coolant in the common heat supply network.
      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.
      Note of RCLI!
      Paragraph 3 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 six months after its first official publication).
      3. In case of restriction of transmission capacity of electric networks of energy transmitting organisations, the priority shall be given to transmission of electric energy, produced by a qualified energy producing organisation.
      Note of RCLI!
      Paragraph 4 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 six months after its first official publication).
      4. Electric generating objects on use of renewable energy sources shall be used in priority during the dispatching of electric power.
      Note of RCLI!
      Paragraph 5 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 six months after its first official publication).
      5. Extension and reconstruction of existing electric and heat networks of energy transmitting organisations for connection of objects on use of renewable energy sources shall be carried out by owner of electric and (or) heat networks with mandatory inclusion of these expenses in the tariffs of energy transmitting organisation according to the procedure provided for by the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets.
      Note of RCLI!
      Paragraph 6 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 six months after its first official publication).
      6. Erection of infrastructural part of objects on use of renewable energy sources to the point of connection shall be carried out by owner of an object on use of renewable energy sources with inclusion of expenses into the value of project.

Chapter 4. FINAL PROVISIONS

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

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

      The President
      of the Republic of Kazakhstan              N. Nazarbayev