Kirgizstan to Clear up Renewables Potential Investors’ Doubts



The government of the Kyrgyz Republic has drafted and proposed a document that is intended to remove all barriers to the current development of the country’s renewable energy sector.

The Regulation on the conditions and procedure for the implementation of activities for the generation and supply of electricity based on renewable energy sources includes the solution of issues that raise doubts among potential investors.

In particular, the lack of a regulatory framework for renewable energy and the current high electricity tariffs are prominent. The latter is the most significant factor, as it significantly increases the payback period of a project.

Thus, the Regulation defines the stages of implementation of renewables-based projects: inclusion of enterprises in a special register; granting land plot titles for construction; preparation of design and estimate documentation; obtaining the necessary licensing and permits; setting tariffs for power delivery; establishing a payback period; conclusion of a power supply agreement; plant construction; facility acceptance and commissioning.

However, what the tariff for electricity generated using renewable sources will be is not specified in the draft regulation. At the same time, it is assumed that investors will be provided with tariff preferences for a period no more than 10 years. However, the mechanism is not specified in the document either.

Meanwhile, experts believe that the approval of the Regulation will give an impetus for the development of a promising direction of energy in the Republic, where there are all natural conditions for the development of sustainable power-engineering industry: water-abundant rivers (hydro power), a high number of sunshine hours per year (photovoltaic power), sites where winds constantly blow (wind power).