Project Report

Investing in energy efficiency to reduce

climate changeNational Center for Energy Saving

and Energy Efficiency,The National Party Concerned

The reason: Memorandum of Understanding between UNECE and the National

Party Concerned

Project № ECE-INT-04-318

Slide 2

Action Plan calls for the preliminary works execution

including the following:

•Website building;• National Energy Policy Data for the purposes of regional studies;• Case Study.

Slide 3

- Briefly about Kazakhstan;- About the Project;- Summary and the Project objectives;- Purpose;- Events;- Public-Private Partnership based Investment Fund ;- Kazakhstan as the Project member;- National Coordinator (NC);- National Institutions Concerned (NIC).

Slide 4

www.energy-effect.kz,1.National Project websiteContent:

- News - Activities in the field of Energy Efficiency and Renewable Energy

in Kazakhstan; -Institutional Structure in Power Supply, Thermal Energy and Gas

sectors; -Brief description of Power Sector; - Kazakhstan Energy Policy; -Kazakhstan Energy Efficiency and Renewable Energy Policy; -Investment Programs and Projects; -Legislation and investment climate in Energy Efficiency and

Renewable Energy.

Slide 5

National Project website

Performance:

�Concept and Structure were developed�English and Russian versions are created

Specific Projects realized by Ministries and Agencies, private

structures of the Republic of Kazakhstan were inserted to the

National Project website.

2. National Energy Policy Data

National Energy Policy Data was realized and submitted to the Department of Steady-state Energy within the established deadline.

National Energy Policy Report includes:�Status Information of key energy sectors of the state;

�Policy Reforms Performance Data aimed at market-based Energy Systems formation, including information in energy, electricity market, gas, energy efficiency, energy saving and renewable energy;

�Information about political peculiarities, legal, administrative and institutional bottlenecks that impede energy efficiency and using of renewable energy markets formation.

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3. National Case Study

National Case Study has been executed on the following theme:

“Analysis of power reforms introduced in the Republic of Kazakhstan and

implementation of the renewable energy related projects”

Legislation�Government Resolution "On Electric Power Development Program 2030»№ 384 from 09.04.1999, the�Law of supporting renewable energy resoures from 04.07.2009

The Principals of supporting support the use of renewable energy fixed by law:

� Investment preferences in accordance with the law on investment.� Energy transmitting companies are obliged to purchase renewable energy generated energy to offset the standard losses.� Conclusion of contracts for sale of electricity to the entire payback period of RES projects at reasonable prices in the feasibility study.� Local executive bodies shall reserve and provide land for construction of facilities for the use of renewable energy in accordance with land legislation.� Exemption from payment RES energy transmitting organizations to transfer electricity.� Granting priority for transferring electricity produced by renewable energy reasourses, in the case of capacity constraints of electrical networks energy transmitting organizations.� While dispatching of electric power used by power generating facilities is a priority for the use of renewable energy.� Expansion and reconstruction of existing power networks to connect the objects to the use of renewable energy made by the owner of electrical networks.

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Investor

«Zhetisu»

Jointenterprise

Share - max 49%

Funds

- Purchase and provision of land;formation of contracts for

electricity sales;Obtaining all approvals and

permits.

Share - min 51%

FinancialInstitutions

Loansto 80% of Projectvalue

Consultingcompany

Development of PIN and PDD documents

ConstructionOf RES

OperationOf RES

Sales shares (amount, timing and% - agreed by the parties)

Scheme implementation of RES projectsScheme implementation of RES projects

Annual receiving of additional proceeds from the sale of emission reductions of CO2

Mechanism of Kyoto report(IPCC and the UNFCCC

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№ The name of an indicatorUnit of measure

megawattMean annual production of electric power, million kWh

Approximate cost of the project,

million tenge

Almaty region

1 Cascade HPPs on the River. Kaskelen 22,6 116,7 8 470

2 Cascade HPPs on the River. Aksai 18,8 97,7 7 050

3 Cascade HPPs on the River. Talgar 11,5 61,5 4 312

4 Cascade HPPs on the River. Chilik 94,3 600,1 35 300

5 Cascade HPPs on the River.BAC 13,9 50,5 5 213

6 HPP-1 and HPP-2 on the River Karkara 43,0 228,0 16 125

Total for Almaty region 204,1 1 154,5 76 480

Taldykorgan region

7 Cascade HPPs on the River. Chizha 36,0 198,1 12 596

8 Cascade HPPs on the River. Borohudzir 10,0 69,8 2 841

9 Cascade HPPs on the River. Usek 25,6 130,5 7 905

10 Cascade HPPs on the River. Keskenterek 6,7 35,2 1 981

11 Cascade HPPs on the River. Hargos 118,2 724,6 44 325

12 Bodarevskaya HPPs (r. Koksu) 31,0 139,0 11 625

13 Rudnichnye HPPs -1,2 (r. Koksu) 42,0 191,1 10 650

14 HPPs Kysylkungei 150,0 520,0 56 250

15 HPPs Kysylbulak 40,0 233,0 15 000

16 HPPsTalapty 18,0 114,0 6 750

17 Cascade HPPs on the River. Aksu 26,1 142,8 9 787

18 Cascade HPPs on the River. Sarkand 11,9 73,0 4 462

19 Cherkaskaya HPPs 8,0 40,0 3 000

20 Konstantinovskaya HPPs (r. Тentek) 100,0 445,7 37 500

21 Gerasimovskaya HPPs-4 (r. Тentek) 44,0 201,0 16 500

22 Zhungarskaya HPPs 50,0 180,1 18 750

23 Tunkuruzskaya HPPs 31,0 156,0 11 625

24 Cascade HPPs on the River. Orta-Tentek 15,6 91,0 5 850

25 Cascade HPPs on the River. Irgaity 34,6 167,9 12 975

Total for Taldykorgan region 799,3 3 852,8 290 373

Total for Almaty region 1003,1 5 007,3 366 853

Plans for construction of small hydropower plants till the 2020Plans for construction of small hydropower plants till the 2020КазНИИЭнергетики

(Ka

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Project of LLP “EnergoAlem "Issyk hydroelectric -2

Technological parametersInstalled capacity megawatt 5.0Firm capacity megawatt 1.8Average long-term manufacture, million kilowatt-

hour28,1

Maximum water flow of hydroelectric power station 4,0

calculation pressure (gross) 160,0average annual water flow of the river

in winter / summer3,8

2,2/5,3

One of the priority directions of development of electricity andenvironmental problems of Kazakhstan is the use of renewable energy resources. July 4, 2009 by № 165-IV was adopted by the Law of the Republic of Kazakhstan "On supporting the use of renewable energy.

The greatest prospects for the development of small hydropower exist in the Almaty region, with considerable potential.

In 2008, a small hydroelectric Issyk-2 was commissioned (Enbekshikazahsky district, pp. Issyk) total power - 5 MW, the payback period of the project is - 2 years.

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LLP «ASPMK-519»

The joint enterprise for the realization of projects were created:

•Feasibility study was developed.•Positive assessments are produced in the feasibility study: Energy and Mineral Resources, Department of Emergency, Kazakhtelecom, Almaty irrigatsiya, Yuzhkaznedra, Gossanepidnadzor.•Feasibility Study for endorsement in the Department of Ecology and State expertise.•Work is underway to arrange financing from the NB for 2010-2012.•Construction documents are being developed at the 1-th HPP on river Chizha

The name of an indicatorUnit of measure

megawatt

Mean annual production of electric power, million

kWh

Approximate cost of the project,

million $

Cascade HPPs on the River. Borohudzir 10,0 69,8 2 841Cascade HPPs on the River. Chizha 36,0 198,1 12 596Cascade HPPs on the River. Keskenterek 6,7 35,2 1 981Cascade HPPs on the River. Usek 25,6 130,5 7 905

Total 78,3 433,6 25 323

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RudnichnyieRudnichnyie HPPsHPPs№№1 1 andand№№2 2 on the River Koksuon the River Koksu

LLP “TT-Group”, and Chinese company Datang

Joining SEC "Zhetisu" in the joint venture for the construction of HPPs №1 and №2 on the river koksu.

Total installed capacity - 42 MWEstimated cost - $ 71.73 millionAverage annual production - 191.14 million kWhDebt capital - 80%Equity - 20%

Feasibility study was developed, all the necessary conclusions were received.CAP is being developed.Determine the proportion of SPK "Zhetisu" in the joint venture (approximately 13-15%).

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Bortagaiskayia HPP and cascade of the small HPP on the river Tekes

Construction of Bartogayskayia HPP

Power - 20 MWAverageAnnual production of electric power - 119,7 million kWh / year.Application for funding of $ 30 million from the Republic of Belarus for 2010 - 2012.

Restoring Tekesskaya HPPConst. capacity - 1,1 MWFor the restoration needs about 200 million tenge.

Construction of cascade hydropower TekesskihPower - 20 MWAverage Annual production of electric power -105,3 million kWh / year.Application for funding of $ 23.3 million from the National Bank for 2010 - 2012.

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MicroMicro --hydro (up to 0,5 MW)hydro (up to 0,5 MW)In order to provide with electricity to remote farms, villages, etc. The

possibility of a joint venture for the construction of micro-hydro.

Advantages:

�water supply from 0,2 to 10 m3 / s at the height of the fall of

1-10m, in those circumstances where the use of conventional

turbines uneconomic

�unimpeded floating of fish

�natural river channels don’t change

�high efficiency (85%), especially in the field of partial loads,

which ensures a high annual output

�simplicity and high speed of construction (3-6 months).

�reliable and simple in design

�Low maintenance costs

�long operation life (25 years)

� small payback period (4-7 years)

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WPS Construction

Almaty region has unique potential for the WPS construction sites - Alataw gates Shelek corridor.

in Alataw Pass: average wind speed - 9,7 m / s flux density - 1050 W/m2 number of hours WPS with full load - 4400 h / year.

in Shelek corridor: average wind speed - 7,8 m / s flux density - 310 W/m2 number of wind farms in full-time - 3100 h / year.

December 3, 2008 between JSC "NC" SEC "Zhetisu and LLP « Energieteam KZ» Memorandum of Understanding was signed, under which the parties will work together toinstall 1000 MW wind farm.

Currently out to tender for the development of pre-feasibility study for construction of wind power station of 50 MW, with theprospect of expanding to 300 MW in Jungar gate and Shelek corridor.

Work on reservation land in Jungar gate and Shelek corridor.

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�The relatively close location of wheat fields to human settlements;

�Projects for the use of biomass as a fuel in industrial scale, within the scope of the

Kyoto Protocol;

�Heat of combustion of straw is 15.9 MJ / kg, which is only 13% below Ekibastuz

coal (18.3 MJ / kg);

�The reliability of fuel supplies, as renewable resources of straw and in Kazakhstan

it is available in sufficient quantities for prolonged use;

�Reduces the cost of thermal energy.

Biomass – entirely renewable and the natural fuel in the storage of solar energy

The area of The area of cultivated landcultivated land

thousandthousand. . hectarehectare

Amount harvestAmount harvest

for 2008for 2008

thousandthousand. . tonstons

VolumeVolume

StrawStraw

thousandthousand. . tonstons

Specific amounts of Specific amounts of straw per hectare of straw per hectare of

landlandtonstons//hectarehectare

Almaty regionAlmaty region 492492 659,7659,7 1319,41319,4 2,72,7

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Thank you for your attention!Thank you for your attention!

National Center for Energy Saving and Energy Efficiency

85 Baitursynov St., AlmatyRepublic of Kazakhstan

Tel. 8 727 292 - 05 - 65Fax. 8 727 292 - 88 - 90

www.energy-effect.kz