The Ministry of Energy of the Kyrgyz Republic has developed standard-term contracts for the supply of electricity by renewable energy sources

The Ministry of Energy is submitting for public discussion a draft resolution of the Cabinet of Ministers “On approval of standard-term contracts for the supply of electrical energy by renewable energy sources”.

The purpose of the resolution: improvement of legislation in the field of renewable energy sources.

The department proposes to approve:

1) Standard-term contract for the supply of electrical energy to a renewable energy facility with a capacity of up to 30 MW

2) Standard-term contract for the supply of electrical energy to a renewable energy facility with a capacity of over 30 MW.

As stated in the justification certificate, the law of August 9, 2023 No. 174 amended the law “On Renewable Energy Sources”.

Changes have been made to:

raising the status of agreements for the purchase of electrical energy from renewable energy sources by the Cabinet of Ministers decision approval.

This is due to existing international standards and will increase investment attractiveness as a mechanism of state support, according to the Ministry of Energy.

“It should be noted that the Standard-term Contracts for the supply of electrical energy generated using RES differ from the contracts in force today in the electricity supply market. A certain peculiarity is caused by the specificity of such contracts as long-term ones, taking into account the specifics of the preferences provided by law for energy entities using renewable energy sources, as well as investment legislation that guarantees protection of investors from long-term risks,” the document says.

At the same time, the project proposes the approval of two standard-term contracts due to the differences in the technical requirements for renewable energy facilities that use water energy and those that use solar and wind energy.

It should be noted that there are differences in the regimes for regulating the capacity of renewable energy sources; different renewable energy technologies, such as wind, solar installations and small hydroelectric power plants, have distinctive characteristics that must be taken into account in contracts.

These characteristics include variability (volume of generation over time), uncertainty (predictability of generation), and locality (coordination between network and generation). These characteristics are duly reflected in the draft agreements.