16 January 2024, 15:02
Kazakhstan's unified power system operates in a normal mode, in parallel with the power systems of the Russian Federation and Central Asian countries. As of today, 220 power plants are operating in the country, including 144 RES facilities with a total capacity of 2.8 GW. At the same time, 16 additional RES facilities with a capacity of 495.6 MW were commissioned last year. The average level of depreciation of plant equipment is 56%. Such data was announced by Energy Minister Almassadam Satkaliyev during the Government session chaired by Prime Minister Alikhan Smailov.
As of January 1, 2024, the total available capacity amounted to 20.4 GW, with an operating capacity of 15.4 GW. The maximum consumption in the current fall and winter period amounted to a maximum of 16.6 GW, while the maximum generation capacity amounted to 15.1 GW. In 2023, electricity consumption was at 115 billion kWh and electricity generation was 112.8 billion kWh. At the same time, imports of electric energy from neighboring countries amounted to 3.4 billion kWh, while exports amounted to 1.4 billion kWh.
"Taking into account the need to maintain energy security, reliable energy supply to the economy and population of the country, as well as taking into account the annual growth of electricity consumption, it is required to commission new power capacities and to carry out modernization of existing power plants. According to the approved capacity balance, by 2030, with the required reserve level of 17%, the demand for electric capacity will amount to 28.2 GW, while the available capacity, taking into account the commissioning of new capacities, will amount to 22 GW. The volume of electric capacity deficit in the Unified Electric Power System of the Republic of Kazakhstan, even taking into account the commissioning of about 4 GW of new capacities, exceeds 6 GW," the Minister noted.
Analysis of the balance in the countries of Central Asia also showed a deficit of electric capacity in the amount of 2.7 GW by 2030.
In order to cover this deficit in the country and increase export potential, the Ministry of Energy has developed an action plan for the development of the electric power industry, providing for the commissioning of an additional 26 GW of new generating capacity. This plan was previously submitted for discussion at the Council on Energy under the President of the Republic of Kazakhstan and was finalized taking into account the proposals of state and local executive bodies.
"Thus, through the reconstruction and expansion of existing power plants, an additional 5.6 GW will be provided. Among such projects are construction of unit No. 7 at Aksu SDPP with a capacity of 325 MW, construction of a boiler unit and turbine replacement at Karaganda TPP-3 and expansion of the combined cycle plant of Karabatan Utility Solution LLP from 310 MW to 620 MW. The plan also provides for the construction of new generation with a capacity of 6.7 GW," Satkaliyev said.
Within the framework of auction bidding for selection of maneuverable generation, construction of gas stations in the cities of Aktau, Atyrau, Aktobe, Taraz, Kyzylorda, Shymkent with a total capacity of 2.4 GW is envisaged. In Zhezkazgan, construction of a new CHPP with a capacity of 500 MW is envisaged by the end of 2029. Large-scale projects with a capacity of 5 GW are also being developed at various stages with strategic investors.
"In view of the high potential for the development of the RES sector, the Ministry has developed and approved a schedule of auction bidding for a 5-year period within the framework of auctions for the selection of RES projects. The total capacity auctioned amounted to 6.7 GW, with 592 MW planned to be commissioned by the end of 2027 based on the results of the bidding. The expected volume of investments until 2029 will amount to more than 18 trillion tenge. The realization of these projects will eliminate the deficit in the energy system and will provide it with the necessary reserve capacity," the head of the department said.
He also noted that the planned generation facilities are dispersed throughout the energy system in order to ensure a balance in electrical capacity and uniform load on power grids.
In case of successful implementation of the Action Plan for the development of the electric power industry, the structure of installed capacity by fuel type by 2035 is as follows:
A significant reduction in the share of coal-fired generation in electricity consumption will be achieved through the introduction of renewable, alternative energy sources and gas-fired generation. Thus, by 2035 it is planned to achieve carbon offset at the level of 44 million tons of CO2 per year.
"In fulfillment of the Head of State's instruction, we have prepared a vision for the development of the Unified Electricity System. In the part of the Western Zone last year the System Operator KEGOC JSC successfully completed the project on construction of the second transit 220 kV Uralsk-Atyrau-Mangystau. As the next step by the end of 2028 the project on unification of power grids of the Western zone with the Unified Power System will be realized. This will ensure the use of maneuverable gas-fired power sources of the Western zone to compensate for the imbalances of electricity and capacity of the Northern and Southern zones," the Minister of Energy said.
To further strengthen the connection between the Northern and Southern regions of the country, as well as to increase the transit potential, it is planned to construct "North-South" DC lines with voltage +/- 500 kV. The transmission capacity will increase by 2,000 MW.
The new architecture of the national electric network will allow to involve into the energy balance the huge potential of renewable sources of the Caspian Sea, Aral Sea region, eastern and southern Kazakhstan. Export and transit potential will be significantly increased.
"Within the transmission and distribution sector, the Ministry of Energy proposes to stimulate the development of regional electricity networks, construction of new overhead power lines, substations, improvement of tariff methodology, including the program "Tariff in exchange for investment", inclusion of measures to reduce losses in the investment programs of energy transmission organizations," the speaker noted.
The Ministry has developed a separate sectoral law "On Heat Power Industry" to regulate the issues of heat power industry. It provides for norms to strengthen control functions by excluding the order of control from the Entrepreneurial Code in the field of electricity and heat energy. Also, control functions in heat networks (within the framework of public centralized heat supply systems) are transferred from the MIO to the Committee for Atomic and Energy Supervision and Control. In addition, it is planned to reform the sector by improving development planning mechanisms through the development of master plans for settlements, incentivizing energy efficiency, and developing the use of clean technologies. Regulations are envisioned to monitor and control the entire industry through the creation of a Digital Energy Platform, which will allow for consolidated collection of information and analysis of the industry in order to develop the necessary measures for further development.
"At the same time, this project establishes clear and exhaustive full principles of tariff regulation and criteria that regulated tariffs for heat energy should meet, namely improving tariff methodology, ensuring an economically justified tariff, the possibility of attracting investment," the Minister emphasized.
In order to bring heat tariffs to an economically justified level and not to cause social tension among the population, a mechanism of direct budget support for vulnerable groups of the population is envisaged. At the same time, a mechanism is envisaged to identify a strategic investor that will enable the implementation of investment projects for the construction of new plants. To ensure support for large energy-intensive industrial projects, the draft law provides for the application of an investment tariff aimed at selling electricity from a single purchaser at the marginal tariffs of energy producing organizations to whose busbars the industrial facilities are connected. In order to further improve the mechanism of the Single Buyer and Balancing Electricity Market, amendments to revise the priority selection of generation are envisaged.
Thus, the implementation of the announced initiatives will ensure stable operation of the energy system for reliable energy supply to the population and the economy, as well as create a foundation for advanced development of the energy sector.
On the current state of the national energy network reported the Chairman of the Board of the company "KEGOS" Nabi Aitzhanov. According to him, KEGOC has 83 substations and 393 power transmission lines with a voltage of 220-500 kV with a total length of about 28 thousand kilometers on its balance sheet.
KEGOC, being the System Operator of the Unified Energy System of the Republic of Kazakhstan, carries out operational maintenance of the National Electric Grid and centralized operational dispatch management of the Unified Energy System of the country. According to the results of 2023, the company performed repair works on 574 facilities for a total amount of 2.5 billion tenge. Under the investment program, 52.3 billion tenge, or 102% of the plan, was used.
"On October 5, the passport of readiness of KEGOS JSC to work in the winter season of 2023-2024 was received. In 2023, KEGOC successfully conducted SPO on two Kazakhstani stock exchanges KASE and AIX in the amount of 22.6 billion tenge. For the sustainable development of the Unified Electricity System of Kazakhstan KEGOC planned three major investment projects," the speaker said.
Thus, the project "Strengthening of the power grid of the Western zone of the UES of Kazakhstan. Construction of power grid facilities", which allowed to improve the reliability of power supply to consumers of the Western zone of the UES of Kazakhstan, to strengthen the connection of 220 kV power grids between the western regions and increase the capacity of the network from the Ural energy hub to Mangystau energy hub up to 200 MW. The project "Reconstruction of 220-500 kV overhead lines of KEGOC's branches Aktobe MES, Western MES and Sarbai MES" was also completed, within the framework of which the existing 24 power transmission lines with a total length of 2023 km, which have reached their normal service life, were reconstructed. The cost of the project amounted to 48.1 billion tenge. The project "Strengthening of the electric network of the Southern zone of the UES of Kazakhstan" was launched, which is aimed at strengthening the power supply of the southern regions of Kazakhstan, ensuring energy security, independence from the energy systems of Central Asia and increasing the capacity of the 500-220 kV North-South transit section "Almaty - Zhambyl" by an additional 500 MW. The total cost of the project is 154.1 billion tenge. Term of realization is 2026. EPC contracts have been concluded. Contractors have started work. Development of design and estimate documentation has started.
"Successful development of the electric power industry requires synchronization of large-scale plans for the construction of generating capacities with the development of the National Electric Grid. 8 major investment projects of KEGOC proposed for implementation until 2040 are defined taking into account their strategic importance for ensuring reliable operation of the National Electric Grid, strengthening energy security and increasing transit potential in the long term," the head of KEGOC noted.
"Thus, according to the forecast balance of electric capacity of Central Asian countries, a deficit of 2.8 GW is projected by 2030. In addition, the project realization will allow Kazakhstan to join the CASA-1000 project and expand electricity sales markets to South Asia. Pre-project study has already started on this project, a preliminary feasibility study has been developed. The implementation period is 2029," Nabi Aitzhanov said.
"After the implementation of the plans outlined, almost all regions of the country will be covered by systemically important 500 kV lines. It is necessary to take measures to include investment projects in the documents of the state planning system by amending the Concept of Electricity Industry Development for 2023 - 2029, adjusting the investment program and the company's tariffs for regulated services," the speaker summarized.
Kairat Maksutov, Chairman of the Board of Samruk-Energy Company, reported on the issues of implementation of large projects in the sphere of generation. To date, the total electric capacity of Samruk-Energy is 7.8 thousand MW, which is 32% of the total generation in the country, including:
In addition, Samruk-Energy JSC includes Bogatyr Komir LLP with a production volume of 46 million tons of coal per year, the power grid company AZhK JSC with a network length of about 30 thousand km, and the power sales company AlmatyEnergoSbyt. The repair works planned for 2023 have been carried out in full. The necessary fuel reserves have been provided at the power plants. In general, the heating season at Samruk-Energy power plants is in normal mode.
In the period of 2024-2035, Samruk-Energy JSC intends to implement a number of large investment projects to create new generating capacities in the total amount of more than 12 GW:
A number of these projects will be implemented jointly with strategic investors.
"On the instructions of the President of the Republic of Kazakhstan in 2023, we have started to implement projects for the construction of new combined cycle gas turbine plants at Almaty CHPP-2 and CHPP-3. According to the project of Almaty CHP-2 it is supposed to construct a new gas-fired plant with installed electric capacity of 557 MW and heat capacity of 816 Gcal. The cost of the project according to the EPC-contract is 330 billion tenge. According to the project of Almaty CHPP-3 it is planned to build a CCGT with installed electric capacity of 544 MW and heat capacity of 160 Gcal. The cost of the project according to the feasibility study is 273 billion tenge. By the current date on two projects signed EPC-contracts and contracts for the supply of basic technological equipment with Siemens Energy, Ansaldo Energia and Dongfang Electric," the speaker said.
He also noted that the projects of CHPP-2 and CHPP-3 are fully funded, construction sites are being prepared, geological surveys are being carried out. Commissioning of the facilities is planned by the end of 2026.
The project of Almaty CHPP-1 received a positive conclusion of RSE "Gosexpertiza" on the feasibility study. Currently, corporate procedures are underway to approve the results of the feasibility study of the project. Taking into account the fact that CHPP-1 already operates on gas and does not affect the deterioration of the environmental situation, it is proposed to start its implementation after completion of the CHPP-2 and CHPP-3 projects.
Under the project for rehabilitation of power unit No.1 at GRES-1, construction, installation and commissioning works under the project have been completed almost in full. Due to the delay in delivery of two sets of equipment from Kaluga Turbine Works PJSC, it was not possible to commission the power unit in December 2023. At the same time, the test launch of the power unit on December 22, 2023 with power supply to the grid showed its readiness for operation. If the supplier fulfills the adjusted terms of delivery of the first set of equipment in February 2024, the power unit is scheduled to be put into operation in March-April 2024 to achieve a capacity of 400 MW. If the second set of equipment is delivered in March, the power unit will be commissioned in May 2024, reaching its full capacity of 500 MW.
"On the project "Expansion and reconstruction of Ekibastuz GRES-2 with the installation of power units No. 3,4" - due to the ban of the Chinese leadership on the construction of coal-fired generation, the organization of financing and involvement of Chinese EPC contractors is currently not possible. In this regard, we are working on a variant of project realization using Russian equipment with attraction of preferential financing from Russian financial institutions," the representative of the company explained.
The GRES-3 project envisages construction of a new plant with a capacity of 1320 MW, two power units of 660 MW each. This project involves the use of technological solutions and equipment from China, including the use of previously purchased equipment for Unit-3 at GRES-2. A pre-feasibility study of the project is currently being developed. As part of this work, a number of significant factors have been identified to determine Ekibastuz energy hub as a site for construction of GRES-3, including: railroad capacity, availability of infrastructure for the scheme of power generation, availability of water supply, availability of ash disposal area, proximity to the fuel source, availability of qualified personnel for construction and operation, as well as compliance with the development plans of the National Electric Grid. Currently, work is underway to attract strategic investors, as well as to determine the mechanism of return on investment with the Ministry of Energy. Conclusion of an investment agreement with the Ministry of Energy is scheduled for the 2nd quarter of 2024. Attraction of potential investor and organization of financing - 2-3 quarter of 2024. Conclusion of EPC contract - 3-4 quarter of 2024. Commissioning of GRES 3 is planned for 2029.
"Samruk-Energy's project portfolio includes a number of investment projects for the construction of the following hydropower plants: Kerbulak HPP on the Ila River with a capacity of 50 MW, Semey HPP on the Irtysh River with a capacity of up to 300 MW, and HPP 29 on the Shelek River with a capacity of 70 MW. Pre-project documentation is being developed for these projects, as well as work with local executive bodies to obtain land plots. Work is also underway to attract potential investors to implement the projects. Commissioning of these hydro projects is expected in 2027-2028. For the successful completion of the projects on construction of hydroelectric power plants, joint work with the Ministry of Energy on the application of an individual approach in determining the mechanism of return on investment is being carried out," the speaker said.
On November 9, 2023 between the Ministries of the Republic of Kazakhstan and the Russian Federation signed a memorandum of cooperation on projects for the construction of CHPPs in the cities of Kokshetau with a capacity of 240 MW, Semey with a capacity of 360 MW and Ust-Kamenogorsk with a capacity of 360 MW. Samruk-Energo and INTER RAO Export were determined as authorized organizations for project implementation. For the construction of CHPPs in the three cities mentioned above, it is planned to use the main technological equipment produced in the Russian Federation, subject to the provision of preferential financing at a subsidized rate.
"Currently, the development of the feasibility study has been completed for the CHPP in Kokshetau, the feasibility study for the Semey CHPP will be ready in March this year, and for the Ust-Kamenogorsk CHPP we plan to start the development of the feasibility study with implementation by the end of 2024. EPC contract signing for Kokshetau and Semey CHPP is expected in Q3 of this year, for Ust-Kamenogorsk CHPP in Q1 of 2025. Completion of construction in 2027-2028," Kairat Maksutov said.
He also added that Samruk-Energy participates in realization of projects on construction of renewable energy sources with total capacity of 5 GW with a number of large investors. Agreements on joint development of projects have been signed, connection points have been determined, development of capacity delivery schemes has begun, station locations have been determined and permits for survey work have been obtained.
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