Models of PPAs in Kyrgyzstan and the approval process under an investment agreement

Rödl & Partner Kazakhstan has participated in the process of negotiating and signing a model PPA for renewable energy in the Kyrgyz Republic. This concerns the construction of a floating photovoltaic park with a capacity of 620 MW.​
 
Model PPAs are used to establish standard conditions and procedures for the supply of electricity from renewable energy sources and to simplify and standardize the process of concluding contracts between electricity suppliers and buyers.in the Kyrgyz Republic, the buyer of the model PPA is the National Electric Network of Kyrgyzstan JSC.
 
The Cabinet of Ministers has adopted a resolution (No. 183 of April 12, 2024), 
which sets out the framework conditions for the supply of electricity from renewable energy sources.
 
The resolution also sets out the criteria for the separation of PPA samples. These are based on the volume of electrical power generated by the renewable energy plants.
 
There are two categories of PPA models: ​​

• PPA models with a capacity of up to 30 MW 
• PPA models with a capacity of over 30 MW.

Compared to the other models, the PPA is characterized by the following features:

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1. ​​The division of PPA models into two categories enables more precise regulation and support, as this allows the special features and needs of different project sizes to be taken into account.
2. This provision regulates the crediting of the capacity of renewable energy installations and allows the modification and adaptation by mutual agreement of model PPAs with a capacity of more than 30 MW in accordance with the terms of the investment agreement. This allows the PPAs to be adapted to the specifics of the respective projects and investment conditions. This provision ensures flexibility within the framework of the investment agreements.

 
With regard to the investment agreement, the Government of the Republic of Kyrgyzstan has the right to conclude investment agreements^​1 for the implementation of projects that are consistent with state development programs in priority sectors of the economy and social sphere. In this context, renewable energy production in the Kyrgyz Republic is recognized as a sector of the economy and social sphere.
 
By the Resolution of the Cabinet of Ministers of the Kyrgyz Republic No. 183 of April 12, 2024, a legal instrument was created to improve the conditions for investors implementing large renewable energy projects, i.e. renewable energy facilities with a capacity of over 30 MW. 
 
Such an approach simplifies the investment field by supporting the policy of the Kyrgyz Republic in separating PPA models and regulating new and additional separate conditions based on mutual agreements between electricity suppliers and off-takers for PPA models with a capacity of over 30 MW. It is important to note that investors realizing such large renewable energy plants have the possibility to apply international PPA models, making this condition bankable for the investors.
 
On the other hand, such separation may limit the ability of smaller utilities to act as investors.   

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1 Other separate details in the closing conditions of the investment agreement are not prescribed in this article