IGAs can be executed for a single project or as an overarching framework for multiple projects and companies. They provide a structured legal environment that supersedes national legislation once ratified by the Kazakhstan Parliament.
Key Benefits of IGAs
- Define the legal framework for RE projects.
- Offer exemptions, benefits, and protections to investors and developers.
- Establish commitments from the Government of Kazakhstan to support project implementation.
- Include detailed term sheets for key agreements such as the Investment Agreement (IA) and Power Purchase Agreement (PPA).
The IGA should contain a number of articles touching on the legal framework for the RE project, providing certain exemptions, benefits and protections for the Project and giving certain undertakings to the Government of Kazakhstan. Sometimes the IGAs also include attachments containing detailed term sheets for the IA and PPA.
Agreements Under the IGA Framework
- Power Purchase Agreement (PPA)
- Agreement for the sale and purchase of electric energy
- Technical dispatching agreements for supply to the grid and energy consumption
- Land lease agreements
- Other supporting contracts
Major RE Projects Implemented Through IGAs
Kazakhstan has already secured several large-scale renewable energy projects under the IGA framework, with international investors committing to developing wind farms integrated with Battery Energy Storage Systems (BESS):
- 1 GW Wind Farm with BESS – Total Energies
- 1 GW Wind Farm with BESS – Masdar
- 1 GW Wind Farm with BESS – Acwa Power.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
