The electric power industry in Kazakhstan includes the following sectors:
Electricity generation sector
Electricity in Kazakhstan is generated by 207 power plants of various forms of ownership. As on 01 January 2023 the total installed capacity of power plants in Kazakhstan was 24523,7 MW and available capacity is 20761,7 MW.
The power plants are branched into power plants of national importance, power plants of industrial importance and those of regional importance.
The power plants of national importance are the large thermal power plants generating and selling electricity to consumers at the electricity wholesale market of Kazakhstan:
The power plants of industrial importance are the combined heat power plants (CHPP), which supply heat and electric power to large industrial enterprises and nearby populated areas:
The power plants of regional importance are the CHPPs integrated with the territories, supplying electricity through the networks of regional electricity network companies and power transmission organisations and heat to the towns nearby.
Electricity Transmission Sector
Electric networks in Kazakhstan include 0.4-1,150 kV substations, switchgears and electricity transmission lines connecting them to transmit and/or distribute electricity.
The backbone grid in Kazakhstan UPS is the National Power Grid (NPG) that provides electric connections between the regions of the country and with the power systems of the neighbouring countries (the Russian Federation, the Kyrgyz Republic and the Republic of Uzbekistan) and deliver electricity from the power plants to the wholesale consumers. KEGOC owns 220 kV and above substations, switchgears, interregional and/or interstate transmission lines being a part of the NPG including lines used for connection of power plants.
Regional power networks provide electrical connections within regions and power transmission to retail consumers. Electric networks of regional level belong to and are being operated by the Regional Electric Network Companies (REC).
The power transmission companies provide contract-based electricity transmission services using their own or managed (rent, lease, trust management and other types of use) electric networks for the wholesale and retail consumers or power supplying companies.
Power Supply Sector
The Kazakhstan electricity market power supply sector includes power supply organisations, which purchase electricity directly from power generators or at the centralized auctions and further sell it to the end retail consumers. Some of power supply organisations have a role of the 'guaranteed power supplier'.
Kazakhstan Electricity Market
Electricity market is divided into wholesale and retail markets, the heating energy market is retail only.
The System Operator, regional electric network companies and other entities owning electric networks shall ensure non-discriminatory access to the electricity market for all market players as prescribed by the state regulator of the natural monopolies and regulated markets.
The relations arising out of generation, transmission and consumption in the electric power industry on the electricity or heat market shall be regulated by the relevant contracts.
The functional design of the wholesale electricity market in Kazakhstan includes:
Relations arising between the participants of the wholesale electricity market of Kazakhstan shall be regulated by the civil laws of Kazakhstan, the Rules of organization and functioning of the wholesale electricity market of Kazakhstan, other regulatory legal acts and contracts between the participants of the wholesale electricity market.
Power generating companies generate and sell electricity at the wholesale market of Kazakhstan if they meet the following conditions:
Power generating companies connected to the national power grid can have access to the national power grid if they have contracts with the System Operator:
The power generating companies connected to the electric networks of REC companies can have access to the national power grid if they have contract with the System Operator for rendering by the latter the services on technical dispatch of generation/consumption of electricity in the UPS Kazakhstan.
Consumers shall conclude electricity purchase and sale contracts at the price, volume and supply conditions at the decentralized electricity market in accordance with the Civil Code.
Electricity consumers may participate in the wholesale electricity market if they meet the following conditions:
The electricity consumers connected to the national power grid can have access to the national power grid if they have contracts with the System Operator:
The electricity consumers connected to the electric networks of the REC can have access to the national power grid if they meet the following conditions:
Power supplying companies can participate at the wholesale electricity market of Kazakhstan if they meet the following conditions:
The power generating companies can have access to the national power grid if they meet the following conditions:
Electricity purchase transactions on the retail market are based on the power supply contracts between consumers and the energy supplying organisations.
Electricity Market Operators
The System Operator of Kazakhstan UPS is KEGOC JSC (Order of the Ministry of Energy of the Republic of Kazakhstan No. 61 dated 17 October 2014) and its functions are to:
Pursuant to the standing Law of Kazakhstan 'On Electric Power Industry', the balancing electricity market (BEM) of Kazakhstan was launched in the simulation mode on 01 January 2008.
Link on the website of the balancing electricity market system for for subjects of the wholesale electricity market: http://126.96.36.199/
To support the operation of the BEM in accordance with the order No. 51 of KEGOC dated 26 March 2021, National Dispatch Centre of the System Operator (NDC SO) was determined by the settlement center. The centralized dispatch control of Kazakhstan UPS is performed by KEGOC's branch the National Dispatch Centre of the System Operator (NDC SO). The operational and dispatch control in Kazakhstan UPS is functioning through the direct operational subordination of nine regional dispatch centres (RDC) being the structural subdivisions of KEGOC branches - Interconnection Electric Networks, to NDC SO.
The centralised trade market ensures open non-discriminatory access of all participants to the electricity market and generate an objective indicator of the current electricity price. KOREM JSC (Kazakhstan Operator of Electric Power and Electric Energy) as an Operator of the Centralized Trade Market is responsible for operation of the centralized trade market (Order No. 54 dated 04 March 2004 of the Ministry of Energy and Mineral Resources).