Astana. January 30. KazTAG – Details of the agreement between Kazakhstan and Saudi Arabia on the wind power plant (WPP) in Dzungarian Gate have become known, the agency’s correspondent reports.
“The Government of Kazakhstan, ACWA Power (a Saudi Arabian-listed joint-stock company) and Samruk-Kazyna National Welfare Fund JSC have entered into an agreement on principles, dated March 1, 2023, for the design, development, engineering, procurement, supply, construction, commissioning, testing, ownership and operation of one or more wind farms with a total capacity of approximately 1,000 MW and a battery storage system with a total capacity of approximately 600 MWh and an installed capacity of approximately 300 MW at Dzungarian Gate, Zhetysu region, Republic of Kazakhstan. The Developer and Co-Developer will invest approximately $1.5 billion in the project,” the agreement, the text of which was obtained by KazTAG, says.
The funds are planned to be invested “including by attracting external financing based on lending with the right to foreclose exclusively on the collateral.”
“ACWA Power (a joint stock company listed in Saudi Arabia) (and/or its wholly-owned subsidiary, directly or indirectly) and JSC Sovereign Wealth Fund Samruk-Kazyna (and/or its wholly-owned subsidiary, directly or indirectly) shall establish a special purpose vehicle under the laws of the Republic of Kazakhstan (the “Project Company”). For the purposes of implementing the Project, the Project Company, as a seller, shall enter into an electricity sale and purchase agreement with LLP “Settlement and Financial Center for Support of Renewable Energy Sources” as a buyer in relation to the sale of electricity generated within the framework of the Project (the “SFCES”),” the document says.
In addition to the wind farm and battery plant, the project includes the construction of a distribution point, as well as an overhead power line approximately 300 km to the KEGOC substation in Aktogay.
“Buyer will pay Seller the following: (a) Electricity Fee calculated at a rate of $0.0281 per kWh; (b) Storage Fee calculated at a rate of $5.4 million per month for 300 MW of storage capacity; and (c) Transmission Interconnection Fee at a fixed rate of $4.98 million per month. In addition, Buyer shall pay Seller an annual advance deposit of $0.29 million per day for the applicable number of days for permitted unavailability with respect to the Transmission Interconnection Facilities,” the document specifies.
The agreement is calculated for 25 years from the start of operation of the DKPE project.
It is noteworthy that the reasons for signing the agreement include “the desire of the parties to strengthen and deepen relations in the energy sector.”
At the same time, the Kazakh side is ready, in the interests of the Arab company, to actually “adapt” the regulatory framework to its needs, to provide land, the rights to land use of which the project developer has the right to provide as collateral in favor of financial institutions, and to ensure, within legal limits, the free movement of the developer’s investments and payments related to investments in Kazakhstan and abroad.
The agreement was signed on behalf of the Kazakh side by Energy Minister Almasadam Satkaliyev, and on behalf of Saudi Arabia by Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud.
Let us recall that on October 31, 2024, President Kassym-Jomart Tokayev held the 36th plenary meeting of the Foreign Investors Council, following which it became known that specific agreements had been reached on the implementation of 43 GW of “green” projects in Kazakhstan, including with ACWA Power .
Photo source: Photo from open sources.
https://kaztag.kz/ru/news/stali-izvestny-detali-soglasheniya-s-saudovskoy-araviey-po-ves-v-dzhungarskikh-vorotakh
