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
Annual Peak Load
The maximum load in 2017 was registered on 13 December at 07.00 PM making 14,194 MW. Compared to 2016 (21 November, 07.00 pm) the maximum load increased by 204 MW or by 1.5%.
The generation capacity was 14,216 MW, which is higher than in 2016 by 407 MW or by 2.9 %. External net power flow (deficiency) amounted to 22 MW including 1 MW import from Russia and 23 MW export to the Central Asia.
Electricity generation in 2017 in Kazakhstan was 102,383.6 million kWh, including:
82,424.8 million kWh generated by the thermal power plants (TPP)
11,157.9 million kWh generated by the hydro power plants (HPP)
8,372.6 million kWh generated by the gas-turbine power plants (GTPP)
428.3 million kWh generated by the solar power stations and wind farms
Electricity generation in comparison to 2016 increased by 8,307.1 million kWh or 8.8 %.
The electricity generation increased at the following power plants:
Ekibastuz GRES-1, by 5,759.7 million kWh·or 63.7%;
EEC JSC, by 777.1 million kWh· or 5.6%;
Ekibastuz GRES-2 power station JSC - by 519.4 million kWh or 10.4%;
Balkhash Kazakhmys Energy LLP CHPP, by 201.1 million kWh or 23.1%.
PavlodarEnergo JSC CHPP-3, by 170.2 million kWh· or 5.5%;
Arselor Mittal Temirtau JSC CHPP-2, by 139.0 million kWh· or 8.7%;
Kazakhmys Energy LLP GRES-2, by 111.2 million kWh· or 2.5%.
Power plant of AZF TNK Kazchrome (gas-turbine unit (GTU) - by 108.3 million kWh· or 15.0%;
Zhambyl GRES JSC, by 86.3 million kWh or 3.5%;
Almaty Power Plants JSC Almaty CHPP-2, by 37.6 million kWh or 1.4%;
Almaty Power Plants JSC Almaty CHPP-3, by 18.3 million kWh· or 1.9%;
SevKazEnergoPetropavlovsk LLP, by 18.2 million kWh or by 0.6%;
Almaty Power Plants JSC Almaty CHPP-1, by 18.0 million kWh· or 4.9%;
Electricity generation decreased at following power plants:
3-Energoortalyk JSC (Shymkent CHPP-3), by 505.8 million kWh or 70.7%;
Aluminium of Kazakhstan JSC CHPP-1, by 165.4 million kWh or 6.6%;
Zhezkazgan Kazakhmys Energy LLP CHPP, by 84.9 million kWh· or 6.8%.
Zhambyl GRES power plants operated 1 to 3 generating units.
Electricity generation at hydro power plants (HPPs) in Kazakhstan increased by 448.0 million kWh or 3.9% as compared to 2016. The generation profile of these power plants was dictated by agricultural water management and hydrological conditions.
Electric power generation at TPPs increased by 7,722.0 million kWh or by 10.3%, at GTES by 965.0 million kWh or by 13.0%.
Power generation structure
Solar and Wind power plants
Electricity consumption in Kazakhstan in 2017 compared to 2016 increased by 5,545.0 million kWh or 6.0%, and made 97,856.6 million kWh. Electricity consumption in the South zone of Kazakhstan increased by 1,538.3 million kWh or 8.1% in the Northern zone - by 3,113.0 million kWh or by 5.0%, in the Western zone - by 893.7 million kWh or by 7.8%.
Consumption increased at:
Aktobe ferrous alloy plant Transnational Company Kazchrome JSC, by 567.0 million kWh· or 25.0%;
Kazphosphate LLP, by 451.0 million kWh·or 36.2%;
Kazakhstan electrolytic plant JSC, by 229.9 million kWh or 6.8 %;
Arselor Mittal Temirtau JSC, by 145.6 million kWh or 3.7%;
Sokolovsk-Sarbai mining and processing production enterprise JSC, by 82.8 million kWh or 5.0%;
Kazakhmys Smelting LLP, by 67.1 million kWh·or 6.8%;
Ust-Kamenogorsk Titanium-Magnesium Plant (UKTMK) JSC, by 40.0 million kWh· or 10.0%;
Atyrau Refinery (ANPZ) LLP, by 9.8 million kWh· or 3.3%;
Kazzinc LLP - by 8.8 million kWh or 0.3%;
Electricity consumption decreased at:
Aksu ferrous alloy plant Transnational Company Kazchrome JSC, by 132.8 million kWh or 2.4%;
Kazakhmys Corporation LLP (ZhTsM), by 12.7 million kWh or 1.2%;
Aluminium of Kazakhstan JSC, by 11.5 million kWh or 1.2%;
Kazakhmys Corporation LLP (BTsM) by 0.2 million kWh or 0.1%;
Electricity consumption increased in 2017 in comparison with 2016 by 1,043.7 million kWh (5.9%) in Pavlodar oblast, by 912.0 million kWh (5.8%) in Karaganda oblast, by 628.1 million kWh (11.9%) in Aktyubinsk oblast and by 826.2 million kWh (17.5%) in Atyrau oblast.
Consumption decreased by 55.4 million kWh (1.1%) in Mangystau oblast.
The electricity consumption structure in the zones of Kazakhstan is as follows:
- Kazakhstan 97,856.6 million kWh or 100.0%
- Zone North, 64,881.3 million kWh or 66.3%
- Zone South, 20,551.2 million kWh or 21.0%
- Zone West, 12,424.1 million kWh or 12.7%
The net power flow in 2017 on the border with Russia amounted to 4,528.2 million kWh (in 2016 flow from Russia was 1,640.2 million kWh). At the same time, electricity exports to Russia amounted to 5,788.1 million kWh (in 2016 - 2773.1 million kWh), an increase of 3,015.0 million kWh compared to 2016. Import of electricity from Russia - 1 259.9 million kWh (an increase as compared to 2016 by 127.0 million kWh). Export and import are presented net of the balancing electricity provided by Russia.
The net power flow from the Central Asia (Kyrgyzstan) amounted to 1.2 million kWh. The export of electricity to Kyrgyzstan was 7.7 million kWh, the import was 8.9 million kWh.