Kazakhstan wind power auction prices drop 34% over seven years

The Kazenergy Association and S&P Global reported that Kazakhstan reduced its minimum auction prices for wind power projects by 34% between 2018 and 2025.

This shift occurred after the country moved from a system of preferential fixed tariffs to a renewable energy auction system. The new system allowed Kazakhstan to take advantage of falling global costs for renewable energy technology. The report shows that wind power prices fell by an average of 5.7% each year during this period.

Solar power prices saw a smaller annual decline of about 3.7%. While wind prices hit a record low in 2024 before rising slightly in 2025, solar prices have remained mostly stable at around 14 tenge per kilowatt-hour in recent years. To speed up the expansion of renewable energy, the Kazakh government began negotiating directly with foreign investors in 2023 instead of using only competitive bidding.

These direct agreements include five projects with a total capacity of 3.9 gigawatts planned for 2030. These projects offer incentives such as 25-year purchase agreements and prices set in US dollars. Several companies are involved in these large scale projects, including Abu Dhabi Future Energy Company PJSC, TotalEnergies SE, CPIH, China Energy Overseas Investment Co. Ltd, and PetroKazakhstan Inc. Kazakhstan is also building hybrid power plants to stabilize the grid.

One such plant in the Mangystau region opened in 2026, and another project in the Almaty region involving a hydropower plant and a wind facility is expected to finish in 2029.