Regional Energy Markets Assistance Program

Kazakhstan

November 8-11, 2010

Government regulation in power sector

Ministry of Industry and New Technology • implementation the government policy; • development programs and control over its implementation; • international cooperation in the power sector; • development and approval of normative legal acts; • appointing system operator and market operator; Agency on Regulation of Natural Monopolies • regulation of tariffs (prices, charges) on goods and services of

natural monopolies in power sector. Agency on Protection of Competition • control and regulation of market participant’s activity, protection and

coordination of competition development, and protection of consumers rights

Generation

• 71 power plants, including 5

• 80 % are coal fired, and 12 % are hydro

• Installed capacity around19,000 MW

• Available capacity is 14,000 MW

• 85 % of power generated in the north

• 33% are in state property

Generation

• 2000 – 54.4 billion kWh

• 2005 – 66.6 billion kWh

• 2010 – 84.0 billion kWh

• 2015 – 97.0 billion kWh

New generation

• Moynak Hydro - 300 MW (2011)

• Balkhash coal - 2,640 MW(2014-2017)

• Renewable – 1billion kWh (2014)

2 billion kWh (2020)

Transmission

The total length of transmission lines 23,327 km, including:

• 1150 kV – 1,421 km • 500 kV – 5,323 km • 220 kV – 15,975 km • 110 kV – 558 km • 35 kV – 42 km • 74 substations• 9 Interregional Electric Companies

Modernizations

1. Kazakhstan Electricity Transmission Rehabilitation

2. Construction of 500 kV Zhitikara-Aktobe in 2008

3. Construction of 500 kV North-South Transit in 2009

4. SCADA

5. ASKUE

Distribution

• 24 distribution electric grid companies (REC)

• 80% RECs are in private property

• Above 400,000 km distribution lines

Electricity market

• Electricity market consists of two levels: wholesale and retail market

• Electricity, capacity, reserves, ancillary

• KEGOC and KOREM

• AREM and APC

Wholesale electricity market

KOREM

MINT

KEGOC

AREMAPC

Market participants

Functional structure of wholesale electricity market

• market of decentralized trade, 95%

• market of centralized trade, 5%

• open non-discriminating access and actual market price

• simulation of real time balancing market

• market of system and auxiliary services

Regional Cooperation

• Reduce total installed capacity

• Reduce reserves: operation and emergency

• Increase reliability

• Increase efficiency

• Decrease price per kWh

Achievements in 2006-2008

• Promotion of KOREM operation with regional perspectives

• Regional Forum on reducing losses• Regional discussion of customs and

energy specialists• Development Central Asia Transmission

Planning Model

Strategy

• Based on Kazakhstan market development

• Development of water-energy market

• Support national reforms

• Integration with South Asia and Russia

• North-South Infrastructure