From fossil fuels to renewables: Analysing efficacy and impact of auctions to attract investment in resource-rich Kazakhstan

Kazakhstan's renewable energy sector is rapidly evolving, with the government employing auctions as a strategic mechanism to facilitate the transition towards sustainable energy sources. This study examines the key factors influencing the total installed capacity of renewable energy, with a focus on auction mechanisms, regulatory frameworks, innovation competitiveness, investments and trade in energy sector. The analysis includes detailed auction outcomes, which reveal trends in the capacity allocated to various energy types, including solar, wind, hydropower, and biomass. The study highlights strong positive relationships between total installed capacity and factors such as bid price or cost competitiveness, project feasibility and technical capability, risk allocation and contracts, social and environmental support and policy. Through a comprehensive review of auction results, this paper contributes to understanding the impact of policy tools (e.g., auction mechanism) on renewable energy development and provides valuable insights for optimizing auction designs in similar emerging market contexts.