Astana:Kazakhstan's minimum auction prices for wind power projects have fallen significantly, by 34%, between 2018 and 2025. The prices decreased from 17.39 tenge ($0.0389) per kilowatt-hour (kWh) in 2018 to 11.49 tenge ($0.0257) per kWh in 2025, as reported by the National Energy Report. This report was prepared by the Kazenergy Association in cooperation with S and P Global.
According to Trend News Agency, the introduction of a renewable energy auction system has greatly contributed to the reduction in electricity prices for renewable energy projects, compared to the prior system of preferential fixed tariffs. This change has allowed Kazakhstan to take advantage of the global decrease in renewable energy technology costs.
The average annual decrease in auction prices for wind power projects was 5.7%, while solar power projects saw a reduction of approximately 3.7% per year from 2018 to 2025. The report highlights that the decline in prices was not uniform. For wind power plants, the minimum auction price dipped to a record low of 6.90 tenge ($0.0154) per kWh in 2024, before increasing to 11.49 tenge ($0.0257) per kWh in 2025.
For solar power, prices stabilized at around 14 tenge per kWh in recent years. Notably, the minimum auction price for solar power was 13.89 tenge ($0.0311) per kWh in 2023, 14.22 tenge ($0.0318) per kWh in 2024, and 13.85 tenge ($0.0310) per kWh in 2025.
The report also mentions that in 2023, Kazakhstan's government added direct negotiations with selected foreign investors to the auction system to expedite new renewable energy capacity. These projects are slated to bypass competitive bidding procedures, operating under intergovernmental agreements.
Five projects with a combined 3.9 gigawatts (GW) capacity are planned by 2030. They include incentives like 25-year electricity purchase agreements, guaranteed regulatory stability, US dollar-denominated electricity prices, and exemption from the electricity balancing market. Among them, three projects, each with a 1 GW capacity and battery energy storage systems, are being developed by Abu Dhabi Future Energy Company PJSC (Masdar), TotalEnergies SE, and CPIH.
Additionally, two projects totaling 900 megawatts (MW) are being developed under direct investment agreements with China Energy Overseas Investment Co. Ltd (800 MW) and PetroKazakhstan Inc. (100 MW).
Kazakhstan is also advancing two major hybrid power generation projects outside the auction system. In 2026, a 247 MW hybrid power plant was commissioned in Mangystau with Eni SpA. A second project, in collaboration with Power Construction Corporation of China (PowerChina), is expected in 2029, enhancing an Almaty region wind power facility from 60 MW to 810 MW, with a 310 MW hydropower plant to stabilize electricity supply.
Currency conversions were made using the exchange rate of $1 = 447.14 tenge, as of November 9, 2026, from the National Bank of Kazakhstan.