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ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of March 27, 2014 No. 271

About approval of Rules of determination of flat fares and the marginal auction prices

(as amended on 10-05-2018)

According to subitem 7-1) of article 5 of the Law of the Republic of Kazakhstan of July 4, 2009 "About support of use of renewable energy resources" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of determination of flat fares and the marginal auction prices.

2. This resolution becomes effective after ten calendar days after day of its first official publication.

Prime Minister of the Republic of Kazakhstan

S. Akhmetov

Approved by the Order of the Government of the Republic of Kazakhstan of March 27, 2014 No. 271

Rules of determination of flat fares and marginal auction prices

1. General provisions

1. These rules of determination of flat fares and the marginal auction prices (further - Rules) are developed according to subitem 7-1) of article 5 of the Law of the Republic of Kazakhstan "About support of use of renewable energy resources" (further - the Law) and establish procedure for determination of flat fares and the marginal auction prices for the electrical energy made by objects for use of renewable energy resources.

2. In these rules the following basic concepts are applied:

1) the auction price - the price of purchase by settlement financial center of the electrical energy made by object for use of renewable energy resources, determined following the results of biddings and which is not exceeding the level of the corresponding marginal auction price;

2) biogas - the methane, monoxide of carbon and (or) hydrogen received from biomass as a result of its fermentation or gasification;

3) biomass - organic not fossil materials of biological origin;

4) the purchase agreement of electrical energy settlement financial center on support of renewable energy resources (further - the purchase agreement) - the purchase and sale agreement of the electrical energy made by objects for use of renewable energy resources, concluded between the settlement financial center acting as the buyer and the power making organization acting as the seller;

5) settlement financial center on support of renewable energy resources (further - settlement financial center) - the legal entity created by the system operator and determined by authorized body, performing according to the procedure, provided by the Law, centralized purchase and sale of the electrical energy made by objects for use of renewable energy resources and delivered in power networks of single electric utility system of the Republic of Kazakhstan;

6) authorized body in the field of the state statistics - the state body performing management, and also cross-industry coordination in the field of the state statistics within the competence;

7) flat fare - rate for purchase by settlement financial center of the electrical energy made by objects for use of renewable energy resources, according to the procedure, established by the Law;

8) authorized body - the central executive body performing management and cross-industry coordination in the field of support of use of renewable energy resources;

Marginal 9) the auction price - the maximum size of the auction price of electrical energy.

Other concepts and determinations used in these rules are applied according to the current legislation of the Republic of Kazakhstan.

3. Flat fares affirm the Government of the Republic of Kazakhstan on representation of authorized body for each of the following types of renewable energy resources:

1) energies of sunlight;

2) wind energy;

3) hydrodynamic energy of water;

4) the energy received when using biogas.

4. The government of the Republic of Kazakhstan has the right to adjust levels of earlier approved flat fares annually.

5. The act of the Government of the Republic of Kazakhstan of adjustment of the approved flat fares becomes effective not earlier than in two years after its first official publication in the periodic printing editions distributed in all territory of the Republic of Kazakhstan, in the Kazakh and Russian languages.

For stimulation of implementation of objects for use of renewable energy resources of low power, and also providing areas with electricity with less favorable natural, climatic, technical or other conditions for development of renewable energy resources flat fares are differentiated depending on installed capacity of objects for use of renewable energy resources.

6. The act of the Government of the Republic of Kazakhstan of adjustment of the approved flat fares does not extend to the purchase agreements signed by settlement financial center until its enforcement.

6-1. The marginal auction prices affirm authorized body for each of the following types of renewable energy resources:

1) energies of sunlight;

2) wind energy;

3) hydrodynamic energy of water;

4) the energy received when using biogas.

The marginal auction prices affirm as tenge.

2. Procedure for determination of flat fare

7. The authorized body creates the offer on approval of flat fares by carrying out comparative analysis of rates for the electrical energy made due to use of the renewable energy resources operating in other states of the world.

The list of the states is determined by authorized body in coordination with accredited consolidation of the subjects of private entrepreneurship performing activities in the field of use of renewable energy resources and National chamber of entrepreneurs of Kazakhstan.

8. When forming the offer on approval of flat fares the authorized body also takes the following factors into account:

1) indicators of development of electrical energy in the Republic of Kazakhstan and its acquisitions because of limits of the Republic of Kazakhstan;

2) indicators of consumption of electrical energy in the Republic of Kazakhstan and its realization out of limits of the Republic of Kazakhstan;

3) indicators of development of electrical energy in the Republic of Kazakhstan objects for use of renewable energy resources;

4) the international obligations of the Republic of Kazakhstan on decrease in emissions of greenhouse gases;

5) the target indicators provided by documents of System of state planning of the Republic of Kazakhstan;

6) availability of the subsequent annual indexation of flat fares.

9. Flat fares affirm as tenge.

10. The offer of authorized body according to flat fares before its entering into the Government of the Republic of Kazakhstan needs to be discussed at public hearings with participation of representatives of authorized body, authorized body on realization of state policy in the field of support of use of renewable energy resources, authorized body in the field of natural monopolies, authorized body in the field of strategic and budgetary planning, National chamber of entrepreneurs of Kazakhstan, and also accredited associations of the subjects of private entrepreneurship performing activities in the field of traditional and renewable power.

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