New mechanisms for electricity trading in Kazakhstan: Investment Tariff and participation of the National Wealth Fund

For foreign investors, these changes are highly relevant as they affect the conditions for purchasing electricity, long-term contractual commitments, and the predictability of capital recovery.

The first mechanism is the so-called investment tariff. This is an hourly tariff under which wholesale consumers purchase electricity from the “Settlement and Financial Center for Support of Renewable Energy Sources”. It is designed to cover investment commitments for projects that commenced before 1 July 2023. The tariff is calculated according to the formula set out in Government Resolution No. 606 of 12 August 2025. The calculation takes into account the costs of acquiring electricity at the maximum tariff, the expenses of Settlement and Financial Center for Support of Renewable Energy Sources for importing electricity and supporting renewables, as well as the consumption share of the respective beneficiary.​

Eligible beneficiaries are limited to legal entities registered in Kazakhstan, including companies within the Astana International Financial Centre. They must have a direct connection to a generating company’s grid, have launched their project before 1 July 2023, and operate the facility for no more than ten years from commissioning. To be included in the official list of beneficiaries, an application with supporting documentation must be submitted to the Government of Kazakhstan. If approved, the company is granted the right to apply the tariff for a specified period, which cannot exceed ten years and is capped at 31 December 2036.

Recipients of the investment tariff are subject to strict obligations. They are required to submit an annual audit report and a financial and operational analysis in accordance with Kazakhstani auditing legislation. These documents serve to confirm the targeted use of the tariff and to disclose profits prior to dividend distribution. Failure to comply with reporting requirements or evidence of misuse will lead to withdrawal of the tariff and removal from the list of beneficiaries. Furthermore, if the mechanism results in sufficient profits to cover all costs and investment commitments, any surplus must be returned to the Settlement and Financial Center for Support of Renewable Energy Sources. This design ensures not only repayment of investment but also redistribution of excess revenues to reduce end-user electricity tariffs.

The investment tariff enhances predictability, reduces investor risks, and guarantees returns on renewable energy projects. For the state, it is a modernization tool; for investors, it provides long-term planning security within a transparent and legally defined framework.

The second mechanism involves the participation of the National Wealth Fund in electricity trading. Energy producers, in which the Fund directly or indirectly holds at least 25 percent of shares, are entitled to sell electricity under special conditions. Such sales may be made either to other energy producers controlled by the Fund or to KEGOC, the national grid operator. This mechanism is limited to 31 December 2028.

Where electricity is sold to KEGOC, contracts may serve both for KEGOC’s own technical and operational needs and for ensuring cross-border flows and participation in the balancing market. It is particularly noteworthy that when determining the maximum tariff, costs associated with electricity purchased from companies involving the Fund are not considered, creating additional incentives for projects with its participation.

The introduction of the investment tariff and the Fund’s participation creates new legal and economic frameworks that promote investment and support the growth of renewable energy in Kazakhstan. The state benefits from a modernized energy sector, investors enjoy predictable returns, and consumers gain from the prospect of greater supply stability and reduced tariffs.

For German and European companies seeking entry into the Kazakhstani market, these mechanisms present significant opportunities. Nevertheless, compliance with statutory requirements and timelines is critical. Investors should be aware that the investment tariff is limited to 31 December 2036, while the Fund’s participation is limited to 31 December 2028. Strategic planning and timely implementation are therefore essential for a successful market entry.

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