How many years will the wind turbines produced in Kazakhstan be able to serve, when will they be produced, and why will it be necessary to buy metal in Russia for their production? Michael Pauls, General Director of United Energy Aktobe, spoke about the details of the construction of a wind turbine plant in Kazakhstan and plans for the sale of products to abctv.kz.
- Mr. Pauls, tell us a little about your company.
- I am the general director of the United Energy Aktobe project. United Energy is a wind turbine manufacturer in Spain. We bought a license from a German licensor for wind turbines similar to those installed at the first Kazakhstani wind farm in the village of Ereimentau, Akmola region (Ereimentau wind farm 45MW represents a complex of 22 wind turbines with a capacity of 2.05 MW (manufactured by FWT, Germany) and a new own substation 220 / 35KV. - Approx. Author)
- What is the cost of the project and when will the construction of the plant begin?
- We think that the procedure for registering an investment agreement will take place one of these days. Then at the end of September this year, the foundation will be laid, and somewhere in the middle of October the construction of the plant will begin. We have been allocated 18.5 hectares of land in the industrial zone of Aktobe. The agreement on this was signed on August 31, 2017. The total investment amount is 84 million euros. The project is split into segments. Quite a lot of work lies ahead. We plan to launch the first segment next year. This is the production and assembly of the generators themselves. We have already signed several agreements for the supply of wind generators to the Kazakhstani market and their installation in wind farms - the wind farm "Ereymentau-2" (Akmola region) and the wind farm "Karkaralinsk" (Karaganda region). I can say that 500 permanent jobs will be created during the implementation of the project. Plus, jobs will be created at the constructed wind power stations.
- Why the production of wind turbines? It is clear that we are talking about "green" energy, which is predicted for the future. But is this a profitable business at the present time, because electricity produced by alternative sources is not cheap, given the cost of equipment and maintenance?
- Here you can speak in two ways. Yes, this is a costly exercise. But based on the European experience ... For example, if you fly by plane and descend anywhere in Germany, you will see a large number of wind turbines that are even in the sea. In principle, you can see such a picture everywhere in Western Europe. Those people who are in the mood for fast business prove that it is not profitable. Using wind generators is not fast business. This is a long term process. In Europe, he has already paid for himself with interest. There is a manufacturer of wind turbines that enters Kazakhstan, and we are lobbying for its interests. It has its own wind generators, which have been in operation for over 30 years and still generate electricity without any problems. Therefore, time will judge whether a project is profitable or not.
- Based on what was Aktobe chosen for the construction of a plant for the production of wind generators?
- First, support for government agencies and local businesses. The second is the favorable geographical position of the Aktobe region. Near the Caspian Sea. We are actively working on the Caspian region. These are Iran and Azerbaijan, which are potential buyers of the products of our future plant. The third is the proximity of the Russian Federation. We have a very large consumption of metal, and in Kazakhstan, we will not be able to purchase its entire volume. After all, one hundred-meter towers need to be produced from rolled metal of a certain thickness, but here it is very small. We have developed a very warm relationship with the Akim of Aktobe region Berdybek Saparbayev - he has great support for this project. We have not experienced any harassment or bureaucratic problems. Yes, there was a slight hitch, because all this is associated with a large number of components, component parts. And each component must be indicated, a technical description must be attached. Quite a large amount of work has been done, which has now been completed. At the first stage, preparations were made for the signing of an investment agreement. Everything was carried out through the Ministry of Investment and Development. Very strong support was from Kazakh Invest JSC. And now we are starting the second stage - the beginning of construction.
- What is the support of Kazakh Invest JSC and Samruk-Energo JSC?
- Kazakh Invest supports us with documentation. After all, the technical documentation is very complex. It is difficult not only for us, but also for the investment committee. Therefore, support is sensitive here. And I was looking for a partnership with Samruk-Energo for a whole year. And now, finally, we managed to find common ground - now a strategic partnership is being established.
- Were you invited here to implement a project or did you come to the region for some other reason?
- There was no proposal. In general, this is an interesting story. It is rightly said that in life everything is ruled by fate. I was initially invited here to work on a completely different topic. Then one day a man turned to me with a question: "Is it possible for you to organize investment funds from Europe for the construction of a wind farm?" I have known the manufacturer of wind turbines Simon Stefan for six or seven years. I answered him: “Why? The manufacturer will come and talk to him yourself. " I called Simon, and literally a week later he arrived in Astana. From that moment on, the idea of building a plant for the production of wind generators in Kazakhstan arose. Indeed, at the moment the sales market in Europe is very complicated. There are sharks there who shout that there is a free market economy, but in the end it turns out that it is not free for everyone.
- How favorable is the investment climate in the Aktobe region?
- It's hard for me to judge, because we haven't started doing anything yet. The support that is provided, and the fact that they meet us halfway, the fact that we do not stand still and do not wait for the necessary documentation for two or three months, as it happens in Russia, and in Germany, already speaks volumes.
- That is, we, in fact, are much easier to resolve such issues?
- I must say that many issues are resolved rather quickly.
- It turns out that such an investment climate suits you?
- I would say even very suitable.
- Are you, as a foreign businessman, promised any preferences in the implementation of the project?
- If we take the countries you listed and compare with Kazakhstan, where is the investment climate more favorable?
- Understand that an investor will not be afraid to invest money where the currency is stable, there are no swings.
- Does currency volatility scare off potential investors?
- Yes, but in any case, the same indexation of tariffs for the purchase of electricity is a huge step towards the investor. This is another plus for investors working in the power generation sector of wind farms. The cost of 1 kW / h of electricity purchased by the national power grid is 22.68 tenge. This tariff is even higher than in the EU countries. True, it is established for the first few years.
-Green energy costs a lot for the budget.
- But it is promising. You know, sometimes you think about it, because in 10-15 years, when the tariffing ends, when the wind generators pay for themselves, and this is about 10 years, then the energy will be practically free. After all, neither coal nor gas is needed to generate it. As long as the wind blows, electricity will be generated. The guaranteed service life of the unit is 20 years. Not far from Berlin there are wind turbines that are more than 30 years old.
- What's in the future?
- The fact that there will be a plant is great. But we also think over the maintenance of these parks. Accordingly, we need to educate people. An education center will be created. After all, we need specialists not only in the field of wind energy, but also in the field of alternative energy in general. The construction of the test field will follow immediately after the first segment. We have one technology that has never been used anywhere else. This is a 3.34 MW unit. It is located in Spain, but we will install it in the Aktobe industrial zone. Next year, this installation will be certified, and its serial production will begin.
Have you ever thought about whether it is possible to reduce the cost of production using the capabilities of Kazakhstani manufacturers and suppliers?
- Sure. Import substitution issues were discussed at the meeting of the founders. We have set ourselves the goal that in the next three to five years, 90% of all component components will be produced here. Because the production potential in Kazakhstan is huge.
- Who are your potential Kazakh supplier partners?
- I can't say about that yet. Kazakh metal, Aktobe copper concentrate plus products of the Zhezkazgan copper smelter will be used. The prospects are enormous, but we haven’t focused on this yet. While we are conducting careful monitoring. For example, we have many components made of plastic, plexiglass. That is, there is a manufacturer in Kazakhstan who manufactures such products. Although some contacts have already been established. I think when the first components come here, there will be something to talk about in more detail.
- From an engineering point of view, a wind generator itself is a rather complex unit. Probably, after all, there is no technological ability to produce absolutely all components in Kazakhstan?
- Two and a half thousand components in one generator. Some components are not simply absent in Kazakhstan, but they will not be in the near foreseeable future.
- How promising is the Kazakhstan market?
- It depends on us, the producers. In addition, the President of Kazakhstan said that local production will have priority in any scenario. We are not claiming everything, which would of course be great. For us today, Samruk-Energy JSC, as a strategic partner, already means a lot.
- Michael, in how many countries is your company represented?
- Spain, Germany, Switzerland and now Kazakhstan. But production is still only in Spain. And it will, I hope, now also in Kazakhstan.
- How do you look at the Russian sales market? Are Russians interested in your products?
- The Russians, of course, are always interested, but at the level of legislation they stipulate that 35% of the installation can be imported, and the remaining 65% are produced in Russia. This doesn't suit us very well. Although the Russian market is very promising. Even our installation, manufactured in Kazakhstan, must have 65% Russian content, which, of course, does not suit us. We will not agree to this, although negotiations on this topic with Rosatom have been going on for several years. In the meantime, we need to create a base in Kazakhstan. The sales market here is promising, so the investor can count on getting his money back with a profit. But export is a priority.
Source: inbusiness.kz