SHET-MERKE
River Small Hydro Power Plant
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1. Project Background |
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á Design Flow (Q) = 1000 l/s á Minimal Flow (Qmin) = ~600 l/s á Penstock (water pipe) L = 9.78 km, d = 1m
á Net head = ~220 m á Construction site @ approx. 1670 m a.s.l. á Capacity = approx. 2-4 MW depending on no. of
turbines The water is to be supplied by an existing Soviet-era reinforced
concrete/steel water pipe. The weir/pipe structures were originally built to
supply a nearby reservoir with water for irrigation purposes, however, since
there is no real demand for irrigation the local authorities have a agreed to
transfer water / land use rights to SME A 35 kV transmission line crossing the riverbed at the site of the
proposed SHPP will serve as connection point to the grid. á Special attractivity
of this project is lays in the relative very investment cost by using
existing hydrotechnical infrastructure. á We estimate investment cost at
Û4-500k/MW capacity; á Design, permitting and
construction shall take 12-18 months á Total investment for 3MW
capacity is ~ Û1.5Million |
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2. Regulatory Framework – Feed-In Tariff |
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Presidential decree № 577 ÒOn the Concept of Transition of the
Republic of Kazakhstan to the Green EnergyÓ from May 30th, 2013
As of 12th June 2014, the Government of Kazakhstan
incentivized the development of renewable energy by introducing a
state-guaranteed feed-in tariff fixed for 15 years*
In April 2016 an amendment was passed by the Kazakh
government in response to the devaluation of the national currency (Tenge) in August 2015 whereby the ÒApproved fixed rates .... are subject to annual
indexation based on changes in the exchange rate of the national currency
against foreign currencies...Ó |
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3. General Information about the Shet-Merke Energo LLC – The Local Player |
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Registered in December 2014 with the aim to develop and exploit
renewable energy sources in Kazakhstan The company represents a Joint Venture by the following: ¥ Mr. Sergey Tereshchenko, Prime Minister of
Republic of Kazakhstan from 1991-1993 and prolific entrepreneur particularly
in the agricultural industry ¥ Mr. Akynbekov Amze
Aynabekovich, regional government affiliate and
business associate of Mr. Tereshchenko ¥ Sekom HandelsgmbH, a privately-held Austrian company involved
in trade and renewable energy development Current project portfolio includes the planning, construction and
operation of: ¥ 2 MW SHPP on Shet-Merke river, Raimbek District of Almaty Region ¥ Up to 200 MW Wind Farm at Djungar Gate ¥ Up to 100 MW Wind Farm at Shelek Corridor ¥ Project portfolio may be expanded to include solar energy projects |
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3. Location of
Proposed SHPP |
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4. Project financial indicators |
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Revenue before tax: Amortization: Capital costs: Required investments: Period for payback: Net
discounted income: Discounted
profitability index of investments: Key
risks and measures to reduce and prevent risks: Tax benefits/privileges: |
Û330k/MW/year 2 – 2.5 years Û650k/MW Û1Õ500Õ000 3 years Û4
Million 4.0 at 12% Government
guarantee for tarif and exchange rate 10 years
free of corporate and property tax |
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5. Offer to
investors |
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á Required amount of
investments: Investor participation
form: Guaranteed profit: |
Û1.5M SPV or JV (50%) 100% net revenues for the
first 2 years and 50% after for the next 8 years. i.e. Û700 x 2 + Û350 x 8 =
Û4.2M in 8 years |
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