The capacity market was finally launched on the 1st January 2019 in Kazakhstan to encourage investment for the renovation of old, as well as the construction of new, power infrastructure facilities.
Because of relevant amendments in the Power Law, all generating companies in Kazakhstan must maintain a specific generating capacity and, correspondingly, the participants in the wholesale power market (such as industrial consumers) have an obligation to pay for the availability of the specific generating capacity.
Author: Shaimerden Chikanayev is a partner at GRATA International Law Firm. He can be contacted at email@example.com.
This article was first published in Islamic Finance news Volume 16 Issue 13 dated the 3rd April 2019.