National Power System

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Structure of Kazakhstan Electric Power Industry

The Unified Power System (UPS RK) of the Republic of Kazakhstan is a combination of power plants, transmission lines and substations providing reliable and quality power supply to consumers in the country.

The government regulation in the electric power industry is carried out in order to:

  • meet to the maximum the consumers demand for energy and protect the rights of electricity and heat market participants by creating competitive conditions in the market ensuring the right for consumers to choose suppliers of electrical and thermal energy;
  • ensure reliable and stable operation of the electric power sector of the Republic of Kazakhstan;
  • unify the control over the electric power sector of the Republic of Kazakhstan as a critically important life-support system of economic and social complexes of the country.

The Ministry of Industry and New Technologies of the Republic Kazakhstan is the state authority performing control and management of the electric power industry.

The following issues fall within the competence of the Ministry:

  • implement the state policy in the electric power industry;
  • draw up development programmes for the electric power industry and monitor their fulfilment;
  • elaborate technical regulations in the electric power industry;
  • international cooperation in the electric power industry;
  • within the bounds of its competence elaborate and approve regulatory legal acts of the Republic of Kazakhstan in production, transmission and use of electricity and heat with the exception of technical regulations;
  • elaborate and approve regulatory legal acts, with the exception of technical regulations, regarding maintenance and safety, equipment performance, norms of electricity and heat consumption for technological needs of energy producing, transmission and supply organizations;
  • elaborate and approve technical standard documents in design, construction, maintenance and safety of electric power facilities, and operational, technical and economic characteristics of equipment, norms of electricity and heat consumption for technological needs of energy producers, which are not natural monopolies;
  • approve terms of reference for the development of investment programme;
  • enter into agreements and investment contracts with energy producing organizations;
  • monitor the fulfilment of investment obligations stipulated in agreements and investment programmes specified in investment contracts by energy producing organizations;
  • form a group of energy producing organizations;
  • approve the procedure for determining the guarantee supplier and its areas of responsibility;
  • specify the methodology, procedure and timing of energy assessment;
  • establish the procedure for drawing up the daily schedule of electricity generation and consumption;
  • determine the system operator and the operator of the centralised electric energy market;
  • define the specifics of operation and organization of the wholesale electric energy market for the regions not electrically communicated with the unified power system of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan;
  • perform other functions in accordance with the laws of the Republic of Kazakhstan.

The power industry is supervised and controlled by the public authority for state energy supervision and control - the Committee for State Energy Supervision under the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan.

The Committee for State Energy Supervision shall supervise and control:

  • the fulfilment of technical requirements in the electric power industry under regulatory legal acts of the Republic of Kazakhstan;
  • the operation and technical condition of power equipment of power stations, electric and heat networks, and electrical and heat-reclaiming facilities of consumers;
  • compliance with technical requirements for electricity and heat quality;
  • rational and economical use, optimization of electricity and heat production, transmission and consumption modes;
  • readiness of power stations, electric and heat networks for operation in the autumn and winter conditions.

The Committee for State Energy Supervision shall perform the following functions and tasks:

  • participate in the work of commissions inspecting power utilities to assess the readiness of facilities and equipment for operation in the winter conditions;
  • keep records of investigations of major operation disturbances of  power plants, heat and electric networks that caused the separation of the unified power system of the Republic of Kazakhstan into several parts, massive restriction of consumers in electrical and thermal energy, damage to large power equipment;
  • have access to electric and power units;
  • carry out periodic inspection of technical condition of power equipment of power stations, electric and heat networks, as well as consumers' power equipment;
  • organize qualification tests of knowledge of technical operation and safety rules by heads of the organizations engaged in production, transmission and distribution of electrical and thermal energy and their purchase for resale, control of technical condition and safe operation of electric and power units;
  • organize the energy  expert assessments at power facilities with respect to safe and efficient production, transmission, distribution and use of electrical and thermal energy, monitor the implementation of energy saving policy, inspect the energy efficiency of entities;
  • prepare the proposals on improvement of the legislation of the Republic of Kazakhstan in the electric power industry;
  • organize the elaboration of energy saving programme, regulatory and procedural acts, legal and economic mechanisms;
  • make proposals to owners of organizations about taking disciplinary actions against persons, who enabled accidents, incidents and other gross violations of technical requirements under regulatory legal acts in the electric power industry, or forward the materials to the relevant state authorities to bring administrative or criminal actions in accordance with the laws of the Republic of Kazakhstan against persons guilty of violating the laws of the Republic of Kazakhstan in the electric power industry.

The Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan is the state body performing the management of natural monopolies and regulated markets (including those in the electric power industry) pursuant to the procedure established by the legislation of the Republic of Kazakhstan.

The Agency for Protection of Competition of the Republic of Kazakhstan performs the regulatory and supervisory functions to control and regulate the market entities, protect and promote competition, and protect consumer rights in the activity area of market entities holding a dominate position at a specific product market (including the electric energy market).

The legislative and other regulatory legal acts effective in the electric power sector of the Republic of Kazakhstan:

  • The Law of the Republic of Kazakhstan 'On Electric Power Industry' dated 9 July 2004;
  • The Law of the Republic of Kazakhstan 'On Energy Saving' dated 25 December 1997;
  • Resolution of the Government of the Republic of Kazakhstan 'On measures for further development of market relations in the electric power industry of the Republic of Kazakhstan' No.190 dated 18 February 2004;
  • The Rules for organization and operation of the wholesale electric energy market of the Republic of Kazakhstan;
  • The Rules for rendering services by the System Operator, organization and operation of the system and ancillary services market;
  • The Rules for operation of the balancing electric energy market;
  • The Rules for organization and operation of the centralized electric energy trading in the Republic of Kazakhstan;
  • The Rules for organization and operation of the retail electric energy market, as well as access and provision of services on this market;
  • Grid Code rules.

Pursuant to the Decree of the President issued in October 2008, in order to improve the existing model of national companies management and enhance efficiency of state assets management, the Joint-Stock Company Sovereign Wealth Fund Samruk-Kazyna was established through the merge of Kazakhstan Holding for Management of State Assets Samruk and Kazyna Sustainable Development Fund.

The Sovereign Wealth Fund Samruk-Kazyna is a public holding company owning and managing the national companies in various spheres of economy including electric power industry, telecommunications, transport and national development institutes.

Structure of Kazakhstan Electric Power Industry

The Unified Power System (UPS RK) of the Republic of Kazakhstan is a combination of power plants, transmission lines and substations providing reliable and quality power supply to consumers in the country.

The government regulation in the electric power industry is carried out in order to:

  • meet to the maximum the consumers demand for energy and protect the rights of electricity and heat market participants by creating competitive conditions in the market ensuring the right for consumers to choose suppliers of electrical and thermal energy;
  • ensure reliable and stable operation of the electric power sector of the Republic of Kazakhstan;
  • unify the control over the electric power sector of the Republic of Kazakhstan as a critically important life-support system of economic and social complexes of the country.

The Ministry of Industry and New Technologies of the Republic Kazakhstan is the state authority performing control and management of the electric power industry.

The following issues fall within the competence of the Ministry:

  • implement the state policy in the electric power industry;
  • draw up development programmes for the electric power industry and monitor their fulfilment;
  • elaborate technical regulations in the electric power industry;
  • international cooperation in the electric power industry;
  • within the bounds of its competence elaborate and approve regulatory legal acts of the Republic of Kazakhstan in production, transmission and use of electricity and heat with the exception of technical regulations;
  • elaborate and approve regulatory legal acts, with the exception of technical regulations, regarding maintenance and safety, equipment performance, norms of electricity and heat consumption for technological needs of energy producing, transmission and supply organizations;
  • elaborate and approve technical standard documents in design, construction, maintenance and safety of electric power facilities, and operational, technical and economic characteristics of equipment, norms of electricity and heat consumption for technological needs of energy producers, which are not natural monopolies;
  • approve terms of reference for the development of investment programme;
  • enter into agreements and investment contracts with energy producing organizations;
  • monitor the fulfilment of investment obligations stipulated in agreements and investment programmes specified in investment contracts by energy producing organizations;
  • form a group of energy producing organizations;
  • approve the procedure for determining the guarantee supplier and its areas of responsibility;
  • specify the methodology, procedure and timing of energy assessment;
  • establish the procedure for drawing up the daily schedule of electricity generation and consumption;
  • determine the system operator and the operator of the centralised electric energy market;
  • define the specifics of operation and organization of the wholesale electric energy market for the regions not electrically communicated with the unified power system of the Republic of Kazakhstan on the territory of the Republic of Kazakhstan;
  • perform other functions in accordance with the laws of the Republic of Kazakhstan.

The power industry is supervised and controlled by the public authority for state energy supervision and control - the Committee for State Energy Supervision under the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan.

The Committee for State Energy Supervision shall supervise and control:

  • the fulfilment of technical requirements in the electric power industry under regulatory legal acts of the Republic of Kazakhstan;
  • the operation and technical condition of power equipment of power stations, electric and heat networks, and electrical and heat-reclaiming facilities of consumers;
  • compliance with technical requirements for electricity and heat quality;
  • rational and economical use, optimization of electricity and heat production, transmission and consumption modes;
  • readiness of power stations, electric and heat networks for operation in the autumn and winter conditions.

The Committee for State Energy Supervision shall perform the following functions and tasks:

  • participate in the work of commissions inspecting power utilities to assess the readiness of facilities and equipment for operation in the winter conditions;
  • keep records of investigations of major operation disturbances of  power plants, heat and electric networks that caused the separation of the unified power system of the Republic of Kazakhstan into several parts, massive restriction of consumers in electrical and thermal energy, damage to large power equipment;
  • have access to electric and power units;
  • carry out periodic inspection of technical condition of power equipment of power stations, electric and heat networks, as well as consumers' power equipment;
  • organize qualification tests of knowledge of technical operation and safety rules by heads of the organizations engaged in production, transmission and distribution of electrical and thermal energy and their purchase for resale, control of technical condition and safe operation of electric and power units;
  • organize the energy  expert assessments at power facilities with respect to safe and efficient production, transmission, distribution and use of electrical and thermal energy, monitor the implementation of energy saving policy, inspect the energy efficiency of entities;
  • prepare the proposals on improvement of the legislation of the Republic of Kazakhstan in the electric power industry;
  • organize the elaboration of energy saving programme, regulatory and procedural acts, legal and economic mechanisms;
  • make proposals to owners of organizations about taking disciplinary actions against persons, who enabled accidents, incidents and other gross violations of technical requirements under regulatory legal acts in the electric power industry, or forward the materials to the relevant state authorities to bring administrative or criminal actions in accordance with the laws of the Republic of Kazakhstan against persons guilty of violating the laws of the Republic of Kazakhstan in the electric power industry.

The Agency on Regulation of Natural Monopolies of the Republic of Kazakhstan is the state body performing the management of natural monopolies and regulated markets (including those in the electric power industry) pursuant to the procedure established by the legislation of the Republic of Kazakhstan.

The Agency for Protection of Competition of the Republic of Kazakhstan performs the regulatory and supervisory functions to control and regulate the market entities, protect and promote competition, and protect consumer rights in the activity area of market entities holding a dominate position at a specific product market (including the electric energy market).

The legislative and other regulatory legal acts effective in the electric power sector of the Republic of Kazakhstan:

  • The Law of the Republic of Kazakhstan 'On Electric Power Industry' dated 9 July 2004;
  • The Law of the Republic of Kazakhstan 'On Energy Saving' dated 25 December 1997;
  • Resolution of the Government of the Republic of Kazakhstan 'On measures for further development of market relations in the electric power industry of the Republic of Kazakhstan' No.190 dated 18 February 2004;
  • The Rules for organization and operation of the wholesale electric energy market of the Republic of Kazakhstan;
  • The Rules for rendering services by the System Operator, organization and operation of the system and ancillary services market;
  • The Rules for operation of the balancing electric energy market;
  • The Rules for organization and operation of the centralized electric energy trading in the Republic of Kazakhstan;
  • The Rules for organization and operation of the retail electric energy market, as well as access and provision of services on this market;
  • Grid Code rules.

Pursuant to the Decree of the President issued in October 2008, in order to improve the existing model of national companies management and enhance efficiency of state assets management, the Joint-Stock Company Sovereign Wealth Fund Samruk-Kazyna was established through the merge of Kazakhstan Holding for Management of State Assets Samruk and Kazyna Sustainable Development Fund.

The Sovereign Wealth Fund Samruk-Kazyna is a public holding company owning and managing the national companies in various spheres of economy including electric power industry, telecommunications, transport and national development institutes.

Annual Peak Load 

The maximum load in 2016 was registered on 21 November at 07.00 PM making 13,990 MW. Compared to 2015 (26 January 2015, 07.00 PM) the maximum load increased by 711 MW or 5.4%.

The generation capacity was 13,809 MW, which is higher than in 2015 by 874 MW or 6.8%. External net power flow (deficiency) amounted to 181 MW including 255 MW import from Russia and 74 MW export to the Central Asia.

Electricity Generation 

Electricity generation in 2016 in Kazakhstan was 94,076.5 million kWh, including:

74,702.8 million kWh generated by the thermal power plants (TPP)

11,605.9 million kWh generated by the hydro power plants (HPP)

7,407.6 million kWh generated by the gas-turbine power plants (GTPP)

360.2 million kWh generated by the solar power stations and wind farms

 Electricity generation in comparison to 2015 increased by 3,279.9 million kWh or 3.6 %.

The electricity generation increased at following power plants:

Ekibastuz GRES-2 power station JSC, by 1,765.1 million kWh or 55.0%;

SevKazEnergoPetropavlovsk LLP, by 398.8 million kWh or 14.2%;

3-Energoortalyk JSC (Shymkent TPP-3), by 283.0 million kWh or 65.4%;

Kazakhmys Energy LLP Zhezkazgan CHPP, by 267.4 million kWh or 27.0%.

PavlodarEnergo JSC CHPP-3, by 162.9 million kWh or 5.5%;

Kazakhmys Energy LLP Balkhash CHPP, by 145.4 million kWh or 20.1%.

Almaty Power Plants JSC Almaty CHPP-2, by 86.5 million kWh or 3.4%;

Aluminium of Kazakhstan JSC CHPP-1, by 38.5 million kWh or 1.6%.

Almaty Power Plants JSC Almaty CHPP-1, by 12.3 million kWh or 3.5%; 

Electricity generation decreased at following power plants:

Ekibastuz GRES-1, by 1,691.3 million kWh or 15.8%;

EEC JSC, by 799.1 million kWh or 5.4%;

Kazakhmys Energy LLP GRES, by 726.8 million kWh or 14.2%.

Zhambyl GRES JSC, by 406.7 million kWh or 14.2%;

Arselor Mittal Temirtau JSC CHPP-2, by 295.5 million kWh or 15.6%;

Almaty Power Plants JSC Almaty CHPP-3, by 158.0 million kWh or 13.9%;

Power plant of KazChrome JSC (gas-turbine unit) Transnational Company ferrous alloy plant, by 0.6 million kWh or 0.1%; 

Zhambyl GRES power plants operated 1 to 3 generating units. 

Electricity production at hydro power plants (HPPs) in Kazakhstan increased by 2,355.6 million kWh or 25.5% as compared to 2015. Agricaltural water management and hydrological conditions dictated the generation profile of these power plants.

The electricity output at gas-turbine units in Kazakhstan increased by 128.1 million kWh or 1.8%. Generation at fosscil fuel power plants increased by 611.0 million kWh or 0.8%.

 The structure of power generation in Kazakhstan 

 

2015, %

2016, %

Total

100.0

100.0

Including  Fossil fuel

81.6

79.4

Hydro

10.2

12.3

Gas turbine

8.0

7.9

Solar and Wind

0.2

0.4

 Electricity Consumption 

Electricity consumption in Kazakhstan in 2016 compared to 2015 increased by 1,451.6 million kWh or 1.6% to 92,311.6 million kWh. In the Zone South of Kazakhstan the consumption decreased by 393.2 million kWh (2.0%). Electricity consumption increased by 1,369.1 million kWh (2.3%) in Zone North, and by 475.7 million kWh (4.3%) in Zone West.

Compared to 2015 the consumption increased at:

Kazchrome JSC Aktobe ferrous alloy plant, by 330.5 million kWh or 17.1%;

Kazakhstan electrolytic plant JSC, by 176.3 million kWh or 5.5%;

Arcelor Mittal Temirtau JSC, by 168.5 million kWh or 4.5%;

Aluminium of Kazakhstan JSC, by 44.9 million kWh or 4.9%; 

Electricity consumption decreased at:

Kazphosphate LLP, by 685.3 million kWh or 35.5%;

Corporation Kazakhmys LLP, by 308.9 million kWh or 19.7%;

Sokolov-Sarbai mining and processing production enterprise JSC, by 136.1 million kWh or 7.6%;

Kazchrome JSC Aksu ferrous alloy plant, by 52.2 million kWh or 0.9%;

Ust-Kamenogorsk Titanium-Magnesium Plant (UKTMK), by 40.2 million kWh or 9.1%;

Kazakhmys Smelting LLP, by 29.9 million kWh or 2.9%;

KazZink LLP, by 12.1 million kWh or 0.5%; 

Electricity consumption increased in 2016 in comparison with 2015 by 635.3 million kWh (3.7%) in Pavlodar oblast, by 438.6 million kWh (10.3%) in Atyrau oblast and by 474.5 million kWh (9.9%) in Aktobe oblast.

Consumption decreased by 88.7 million kWh (1.9%) in Kostanai oblast and by 603.5 million kWh (15.9%) in Zhambyl oblast.

The electricity consumption structure in the Zones of Kazakhstan was as follows:

- Kazakhstan, 92,311.62 million kWh or 100.0%

- Zone North, 61,768.3 million kWh or 66.9%

- Zone South, 19,012.9 million kWh or 20.6%

- Zone West, 11,530.4 million kWh or 12.5%

Power Flows 

The net power flow in 2016 on the border with Russia amounted to 1,640.2 million kWh (in 2015 net power flow from Russia was 471.4 million kWh). The electricity export to Russia amounted to 2,773.1 million kWh which is 1,738.5 million kWh higher than in 2015 (1,034.6 million kWh) because of electricity supplied since 17 March 2016 from Ekibastuz GRES-2 LLP to IRAO PJSC networks under contract No. 01-398/2016-1 dated 25 January 2016. The electricity import from Russia was 1,132.9 million kWh (decreased by 373.1 million kWh or 24.8 %). Export and import are presented, taking into account the net of the balancing electricity provided by Russia. 

The net power flow on the border with Central Asia (Kyrgyzstan) amounted to 124.7 million kWh. The export of electricity to Kyrgyzstan was 335.3 million kWh, the import was 210.6 million kWh.