The model of centralized purchase and sale of electricity has been operating in Kazakhstan since July 1

As part of the execution of the instructions of the head of state, in order to promptly eliminate imbalances in the energy system, electricity shortages, unequal conditions of competition due to different tariffs of energy producing organizations, the ministry developed a model of centralized purchase and sale of electricity through the Unified Power Purchaser.

The new mechanism was widely discussed with market participants and the ministry representatives conducted a large explanatory campaign with site visits to the regions prior to its launch.

Prior to the launch of the mechanism, a meeting was held at the RK Ministry of Energy under the chairmanship of Almasadam Satkaliyev, head of the ministry, to reconcile hours with representatives of the sector. The meeting was held in online format, it was attended by about 300 energy entities. It should be noted that the Ministry gave answers to all questions of market participants.

The Ministry once again informed everyone about the details of the mechanism to be implemented, which will take effect on July 1, 2023.

The unified purchaser of electricity will allow:

- eliminate speculative transactions in the purchase and sale of electricity;

- minimize deviations of power flows from the energy systems of neighboring states, by abandoning the formation of daily schedules based on the technical capacity of power plants and switching to the actual schedules of consumers;

- to ensure the balancing of high tariffs of newly commissioned energy sources and imported electricity prices during shortages with the current tariffs of operating plants, as well as, in the future, to equalize electricity tariffs between regions.

LLP  Financial Settlement Center for Renewable Energy Sources Support (LLP FSC on RES), a subordinate organization of the RK Ministry of Energy, was defined as a single purchaser of electric power. Previously, LLP "FSC on RES" carried out the purchase and sale of electricity produced by facilities using renewable energy sources and supplied to the unified energy system of Kazakhstan.

 LLP "FSC on RES" will carry out the planned purchase of electricity from domestic power plants a day in advance by bidding on the electronic platform of centralized bidding - JSC "Kazakhstan Electricity and Capacity Market Operator" (JSC "KOREM").

If the volume of electricity from domestic power plants is insufficient, the Unified Purchaser will purchase electricity from the power systems of neighboring states. The cost of imported electricity will be distributed evenly to all wholesale consumers.

There will be full repurchase of electric power:

- all cogeneration plants in the country;

- RES facilities that have agreements with FSCs on the RES support mechanism;

- new conventional power plants commissioned by tenders and auctions;

- power facilities commissioned under investment agreements with the Ministry of Energy for modernization, reconstruction and expansion.

Power plants not on this list will compete for demand by offering the lowest cost.

All necessary by-laws have been coordinated by the Ministry of Energy with the interested state bodies and submitted for registration to the Ministry of Justice of Kazakhstan.

Summing up, the minister noted that if any shortcomings are identified in the work of the new mechanism, the ministry, together with government agencies, is open to suggestions and will be ready to make the necessary adjustments on the recommendation of market participants.

 

 

The original material is posted in Russian and Kazakh languages on the official page of the Ministry of Energy