1) Parallel operation with neighbouring countries
The first legal framework document for cooperation between the states and businesses engaged in parallel operation was the Agreement for parallel operation of the power systems of the CIS members-states, which was signed at the meeting of the Council of CIS heads of states on 25 November 1998.
The technological base for the common electricity market is a parallel operation of power systems of the CIS member-states and ensuring of the agreed cooperation between the national System Operators in the power systems of the states. Currently 11 power systems of CIS member-states and power systems of the Baltic countries are engaged into the parallel operation.
KEGOC, as the system operator of the Unified Power System of the Republic of Kazakhstan, is responsible for interaction with power systems of neighbouring countries in terms of management and stability of safe parallel operation.
Currently, Kazakhstan UPS operates in parallel with the UES of Russia and IPS of Central Asia, which includes the energy systems of Kyrgyzstan and Uzbekistan.
This cooperation is based on intergovernmental agreements, according to which the parties may provide the interstate electricity supply and services (transit, power regulation).
The company fully supports the current good neighborliness policy of Kazakhstan and, as a result, the company has friendly partnerships with the energy systems of the neighbouring countries. Of course, like all over the world, we seek to build the mutual relations between the energy systems, on the mutual beneficial cooperation and no-harm principles for each Party.
The parallel operation of Kazakhstan and Russia power systems
The agreement between the Governments of Kazakhstan and Russia on parallel operation of power systems of Kazakhstan and Russia (dated 20 November 2009) made effective since 2010 the following agreements between KEGOC and Russian entities that regulate the basic technical and financial obligations of the parties during the parallel operation of power systems:
- Agreement on the parallel operation of power systems of Kazakhstan and Russia (FGC UES JSC and UPS SO JSC);
- Contract with FGC UES JSC for electricity transmission through Kazakhstan National Power Grid;
- Contracts with INTER RAO UES JSC for electricity purchase to compensate hourly deviations arising from power flow across the border between Kazakhstan and Russia.
Parallel operation of Kazakhstan UPS and IPS of Central Asia
The relationship between the power systems of Central Asia are governed by the agreement between the Governments of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan on the parallel operation of power systems (Bishkek, 17 June 1999), according to which the parties may provide interstate electricity supplies and services. KEGOC is the participant of the Central Asia Coordination Electric Power Council on behalf of Kazakhstan. The Council was established by the economic entities and is an important ‘platform’ for a constructive dialogue between the parties on topical issues of cooperation within the framework of parallel operation of power systems.
2) Integration organizations
In cooperation with neighbouring countries KEGOC participates in activities of the international integration organisations to develop a coordinated power industry development strategy, improve the efficiency of the power system operation, ensure a reliable power supply to consumers using advantages of parallel operation of the power systems in neighbouring countries and build a common electricity market in the CIS and Eurasia. Such organisations include CIS Electric Power Council (CIS EPC), Eurasian Economic Commission (EEC), Eurasian Economic Union (EEU) and Central Asia Coordination Electric Power Council (CA CEPC).
In 2018, KEGOC hosted the 53rd CIS EPC meeting in Nur-Sultan on 2 November 2018.
Being the System Operator, КЕGОС pays a special attention to participation in meetings of the Commission for coordination of operational and technological co-operation of the CIS and Baltic states power systems (CCOTC) to develop and approve the package of documents in accordance with the CCOTC Work Plan for 2018-2020. The parameters for regulating the frequency and flows of active power and determining the values of the required reserves of power of the normalized primary regulation in the energy mix of the CIS countries, the Baltic States and Georgia for 2018-2019 are approved. A Regulation has been developed for the exchange of information between dispatch centers of power systems of the CIS and Baltic countries on cases of frequency deviation in order to monitor the quality of frequency regulation and active power flows, as well as monitoring active power flows that are not related to the change.
The priority of the EEU activities in the electric power industry is the formation of a common energy market. This work was carried out by the Eurasian Economic Commission. The Eurasian Economic Commission (EEC) is a standing regulatory body of the Eurasian Economic Union. It has started to operate since 2 February 2012. The main function of the EEC is to provide the conditions for the EEU operation and development, elaborate proposals on further integration development.
KEGOC representatives participate in meetings of work groups, Consultative Committee for Electrical Energy under the Collegium of the Eurasian Economic Commission, sub-committee for common electricity market development in the EEU.
As a member of the Central Asia Coordination Electric Power Council, KEGOC participates in the meetings of the Coordination Commission of CA CEPC. The main issues discussed at the meetings: issues of parallel operation, the results of the work of Central Asia Integrated Power System (CA IPS) during the vegetative and autumn-winter period, future interconnection structure of CA IPS and South Kazakhstan area, conclusion of Agreements between the power systems to enable parallel operation including contracts to settle the unscheduled electricity flows, and render mutual services for frequency (power) regulation.
3) Cooperation with international organisations
Since 2004, KEGOC is an international associated member of the European Union of the Electricity Industry EUROELECTRIC. The Company as expert cooperates with EUROELECTRIC relating to power industry and energy efficiency.
The European Union of the Electricity Industry – EURELECTRIC is an international non-governmental organisation, established in 1999. The main tasks of EUROELECTRIC are to develop concepts, ideas and strategic positions in favour of the power sector in Europe.
Also, KEGOC participates in:
- activities of the World Energy Council (WEC), leading global energy organisation, established in 1923. Non-commercial, registered in the UN. Goals of the WEC are to promote sustainable power supply and use of energy resources to provide the maximum satisfaction of the needs in power. WEC membership is carried out through national committees in 93 countries.
- activities of the Executive Assembly of the World Energy Council (WEC) annually convened to develop prospects for the Council, its strategy and policy.
- sessions on the Energy Charter. On 17 December 1991, European Energy Charter was signed in The Hague. The Charter was established as a cooperation mechanism for energy issues between Western and Eastern Europe. The main goals of the Charter are to strengthen the energy security, facilitate energy efficiency, minimise damage to the environment, develop efficient energy markets and create a favourable investment climate.
- sessions of the United Nations Economic Commission for Europe.
In July 2016, KEGOC became a member society of International Council on Large Electric Systems (Conseil International des Grands Réseaux Électriques – CIGRE). Today CIGRE is one of most reputable and significant scientific and technical associations in energy sector, greatly influencing the power industry development strategy in many countries.
Moreover, during implementation of large projects for rehabilitation of the existing and construction of new facilities, KEGOC cooperates with international financial institutes through raising loan proceeds from the International Bank for Reconstruction and Development (IBRD) and European Bank for Reconstruction and Development (EBRD).