The meeting of the Board of Directors of KEGOC approved inclusion of 5 new initiatives (3 projects and 2 efforts) in the Project Portfolio of the transformation programme.
New initiatives and projects were added in accordance with the instruction of Mr Akhmetzhan Yessimov, the Chairman of the Management Board of Samruk-Kazyna JSC, given at the performance report event of the Fund's portfolio companies in May 2020. The business initiatives collected in the first quarter of this year were compiled in a long (35 initiatives) and a short (21 initiatives) list of ideas, which became the basis for Transformation Portfolio update proposals.
Thus, the current five ongoing projects and six events were completed with the projects for "Modernization of the dispatch control and data acquisition system SCADA / EMS", "Modernization of monitoring and control systems of substations", "Replacement of the electronic document management system", and the efforts for "Research of use of data analysis in business processes” and “Analysis of business processes in terms of HSE”.
Benefits from the implementation of initiatives of the updated Portfolio of KEGOC Business Transformation Projects until 2032 are expected to reach more than KZT 20 billion.
"Modernization of the dispatch control and data acquisition system SCADA / EMS” is expected to to completely replace the dispatch control and data acquisition system with a new one that meets the requirements for creating an intelligent energy system in Kazakhstan to introduce Smart Grid elements based on Industry 4.0 technologies.
The reasons for the replacement were the depletion of development potential of the current SCADA / EMS, obsolescence of the hardware, inadequate functionality of initial data management and archiving, the insufficient telemetry input from the power facilities connected to the unified power system (UPS) of the Republic of Kazakhstan and from adjacent power systems, which leads to the risk of erroneous actions of personnel or a long-term elimination of the system faults and consequently to massive losses up to billion tenges.
The new supervisory control and data acquisition system SCADA / EMS will allow to: forecast generation and consumption with high accuracy, increase the observability of the network and equipment, increase the efficiency of operational dispatch control and personnel management thanks to availability of a dispatcher's simulator, expand the possibilities through automated calculations of electrical grid state modes and integrating dispatch control systems into the information system of KEGOC.
The reasons for the implementation of the project of "Modernization of substation monitoring and control systems" are the technical and moral obsolescence of the current SICAM SAS systems manufactured by SIEMENS AG, non-compliance with the requirements of the modern international standard for substation automation IEC 61850, the impossibility to integrate systems and microprocessor-based relay protection and automation devices of various manufacturers, termination of support for the operating system (Windows XP) installed on workstations at the substations and required for WinCC v.6 software operations. (cybersecurity risk exposure), as well as the expiry of SIEMENS AG contract for the supply of spare parts for systems, which now leads to difficulties in their further acquisition and delivery.
By the end of 2022, it is planned to replace the SIMATIC S-400 program logic controllers of the SICAM SAS central coordinators with modern Substation Monitoring and Control (SMC) solutions that support IEC 61850. At the same time, the integration of SMC through the existing Profibus FMS data transmission network with protective relay units will be preserved. This modernization was proposed by the Relay Protection and Substation Automation Department and is less expensive in comparison with the proposal of SIEMENS. Thus, the company will no longer depend on the sole protective relay manufacturers, will not be forced to use the operating systems that is no longer supported by the manufacturer and thus will stop using virtual machines, which shall increase the overall level of cybersecurity. In addition, the equipment de-commissioned in the process of modernization will temporarily cover the current deficit of spare parts, and further expansion of substations will integrate the protective relay units using IEC 61850 substation automation standard.
Both modernization projects shall enhance reliable operation of the unified power system Kazakhstan through innovative, technological development and digitalization of the company.
To ensure the efficiency of the company's operations, it is also planned to replace the electronic document management system in 2020. The company expects a significant decrease in paper workflow due to the creation of legally significant documents using the digital signatures (EDS) of the National Certification Centre (NCA RK) and integration with the electronic document management system of the counterparties. The new system will solve a number of issues, such as reducing the cost of printing documents by KZT 87.2 million per year, increasing labour productivity, covering a larger perimeter of the company's business processes, ensuring the safety of confidential data, and others. Project implementation period: September 2021.
In 2020-2021, the company plans to conduct a study on the use of data analytics of technological systems to improve the efficiency of operations. As part of this effort, the company plans to study the possibility of reducing total losses in electrical networks by 3% by analysing anomalies in electrical networks and predicting weather conditions based on data obtained using the commercial metering system, as well as reducing emergency outages by 4% by ranking criticality of the equipment based on their technical condition.
"Analysis of business processes in terms of HSE” effort is expected to study various solutions and choose the most rational option for automating industrial safety and environmental management processes in accordance with corporate accounting systems existing at KEGOC.
The meeting of the Board of Directors of KEGOC also approved the report on the implementation of the Business Transformation Program for Q2 2020. During the reporting period, according to the map of the Business Transformation Program approved by KEGOC, all planned milestones were reached.