Energy sector of Kazakhstan

The Unified Electric Power System of the Republic of Kazakhstan (UEPS of RoK) is a combination of power plants, power lines and substations that provide reliable and high-quality power supply to consumers of the Republic of Kazakhstan.

The power industry of the Republic of Kazakhstan contains the following sectors:

• electric power generation
• transmission of electrical energy
• electric power supply
• electrical energy consumption
• other activities in the field of electricity

Power plants are divided into power plants of national importance, power plants for industrial use and power plants for regional use.

Power plants of national importance include large thermal power plants, which ensure the generation and sale of electricity to consumers on the wholesale electricity market of the Republic of Kazakhstan:

• Ekibastuz GRES-1 LLP
• JSC "Station Ekibastuz GRES-2"
• Eurasian Energy Corporation JSC (Aksuskaya GRES);
• GRES “Corporation Kazakhmys”
• JSC "Zhambyl GRES"

As well as high-capacity hydraulic power plants, used additionally and to regulate the load curve of the UEPS of Kazakhstan:

• Bukhtarma HPP JSC "Kazzinc"
• LLP "Ust-Kamenogorsk HPP"
• LLP "Shulbinskaya HPP"

The power plants of industrial value include CHP, with a combined production of electrical and thermal energy, which are used for electricity and heat supply of large industrial enterprises and nearby settlements:

• TEC-3 KaragandaEnergocenter LLP;
• TPS PVS, TETs-2 JSC Arcelor Mittal Temirtau;
• Rudny CHP (SSGPO JSC);
• Balkhash CHP, Zhezkazgan CHP LLP Corporation Kazakhmys;
• Pavlodar CHP-1 Aluminum of Kazakhstan JSC and others.

Power plants of regional importance are thermal power plants integrated with territories that sell electricity through networks of regional power grid companies and energy transmission organizations, as well as heat supply to nearby cities.

Electric networks of the Republic of Kazakhstan are a set of substations, switchgears and power transmission lines connecting them, with a voltage of 0.4–1150 kV, intended for transmission and (or) distribution of electrical energy.

Power transmission organizations on the basis of contracts transfer electricity through their own or used (rent, lease, trust management and other types of use) electrical networks to consumers of the wholesale and retail market or energy supplying organizations.

The role of the backbone network in the UEPS of the Republic of Kazakhstan is performed by the national electrical network (NES), which provides electrical communications between the regions of the republic and the power systems of neighboring countries (the Russian Federation, the Kyrgyz Republic and the Republic of Uzbekistan), as well as the issuance of electrical power by electrical stations and its transfer to wholesale consumers . Substations, switchgears, interregional and (or) interstate power lines and power lines that produce electricity of power plants with a voltage of 220 kV and above, which are part of the NES are on the balance of the Kazakhstan Electricity Grid Operating Company KEGOS JSC.

Electric networks of the regional level provide electrical communications within the regions, as well as the transmission of electrical energy to retail consumers. Electric networks of regional level are on the balance and operation of regional electric grid companies (RECs).

The power supply sector of the electricity market of the Republic of Kazakhstan is represented by energy supplying organizations (ESO), which purchase electricity from energy producing organizations or at centralized trading and its subsequent sale to end retail consumers.

The authorized authority that manages the power industry is the central executive body that manages the power industry, the Ministry of Energy of the Republic of Kazakhstan.

Energy supply in the Republic of Kazakhstan is carried out in the conditions of functioning of the markets of electric and thermal energy. Electrical and thermal energy are marketable.

The market of electric energy consists of two levels: the wholesale and retail markets of electric energy, the market of thermal energy consists of one level - the retail market.

The wholesale electricity market in Kazakhstan consists of the following segments:

The decentralized market for the sale and purchase of electricity is carried out through bilateral agreements. This sector is free and occupies the main share in the structure of the wholesale market, the parties to the contract independently on contractual terms determine the terms of the contract, the volumes and price of electricity.

The centralized electricity market is carried out through trading on the basis of an exchange-type trading platform for spot-trading “one day in advance” and on long- and medium-term contracts at the centralized platform on a voluntary basis, with the exception of some cases established by the Law of the Republic of Kazakhstan “On Electric Power Industry”.

Pricing in the centralized market of electric energy is carried out by means of trades carried out by exchange methods (the method of bilateral auction and the method of continuous counter trades).

The balancing electricity market, operating for the physical and subsequent financial settlement of hourly imbalances in real time, operates in a simulation mode.

The system and auxiliary services market operates on the basis of both acquisitions from the wholesale electricity market participants and the provision of relevant services by the system operator to the wholesale electricity market entities to ensure the established standards for the reliability of the unified power system of the Republic of Kazakhstan and the quality of electricity.

The electric power market operates on the basis of the purchase of services to maintain the availability of electrical power and to provide a centralized service to ensure the availability of electrical power to bear the load.

The subjects of the wholesale electricity market are:

• energy producing organizations carry out activities for the production and sale of electric energy;
• energy transmission organizations carry out activities for the transmission of electrical energy;
• power supply organizations;
• electric power consumers;
• system operator;
• operator of the centralized trading market;
• single purchaser.