Integrated renewable energy groups and their role in Kazakhstan's electricity market

published on July 3, 2025 

1. Structure of Kazakhstan’s electricity market

Kazakhstan’s electricity market operates on two levels: the wholesale market for electricity and capacity, and the retail electricity market. For international investors and stakeholders in renewable energy, the wholesale market is of particular importance.

2. Concept and requirements of the group

An integrated renewable energy group is a legally defined cluster of market participants whose electricity generation includes at least 25 percent from renewable sources. The group operates at a single grid connection point and must be officially registered with the Ministry of Energy of the Republic of Kazakhstan.

The group consists of:

Power producers using renewable or flexible generation facilities,
Consumers drawing electricity within the group,
System operator KEGOC;
Operator of the centralized trade market KOREM JSC; and
Single purchaser of electric energy RFC LLP
A central administrator responsible for coordination.

To form such a group, a legal entity must hold at least 25 percent of the shares or interests in the participating companies. This entity is required to submit a formal registration application to the Ministry of Energy.

3. Role of the group administrator

The administrator of the integrated renewable energy group plays a key operational and regulatory role. Responsibilities include purchasing electricity from affiliated producers and supplying it to internal consumers or trading it on the balancing energy market.

Electricity can only be sold to the major off-taker RFC LLP if a government-approved tariff has been granted. Furthermore, the administrator is required to implement an automated commercial metering system that transfers hourly consumption data to the national grid operator KEGOC.

4. Regulatory requirements for producers and consumers

All group members are subject to clear regulatory obligations:

Power producers may sell their electricity exclusively to RFC LLP or to the group’s own administrator. Selling to other market participants in the wholesale or retail sector is prohibited.

Consumers must be registered participants of the wholesale market and officially listed as part of the integrated renewable energy group. If they consume power from both internal and external sources, they are required to pay transmission fees under a contract with KEGOC.

Group members are also permitted to design, construct, and operate high-voltage transmission lines (220 kV or more), provided the energy transmitted is used exclusively within the same administrative-territorial unit and that KEGOC's technical standards are fully observed.

5. Strategic relevance for investors and the energy market

Integrated renewable energy groups play a central role in the integration of renewables into Kazakhstan’s energy infrastructure. They enhance grid stability, support environmental objectives, and create a framework for sustainable energy investments.

For investors – especially German companies focused on the green transition – this model offers several advantages:

Regulated and structured access to the wholesale electricity market,
Coordinated operations under a single management structure,
Eligibility for state support and incentive schemes,
Long-term potential for infrastructure and renewable energy investment.

6. Conclusion

The integrated renewable energy group represents an innovative and strategically important model within Kazakhstan’s energy sector. It enables synergy among producers and consumers, promotes efficient resource use, and strengthens Kazakhstan’s attractiveness as a destination for green investment.

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