“Samruk-Energy” JSC | Integrated annual report
Address of the Chairman of the Management Board

Almassadam Satkaliyev

The Chairman of the Management Board of “Samruk-Energy” JSC

Production and financial activity of “Samruk-Energy” JSC in 2016 shows a positive dynamics. The profit of 18 billion tenge was earned at the tariffs level and sales volumes identical to the previous period. Anti-crisis measures as optimization of investment program and reduction in operating costs ensured a successful result.

Significant events included the resumption of power supplies to the Russian market in March 2016. 1, 8 billion kWh was exported from “Ekibastuz SDPP-2 Plant” JSC owing to the Government support and partnership with PJSC Inter RAO.

Subsidiary production companies made a worthy contribution to implementation of investment projects. In the western Kazakhstan “Mangistau Distribution Power Grid Company” JSC opened the new regional dispatch center in Aktau city. Commissioning of a new turbine unit No. 3 at Aktobe CHP has increased the plant’s capacity by 34% from 88 to 118 MW. Boiler unit No. 8 with respect to the project «Reconstruction and expansion of Almaty CHP-2”. III stage» was put into operation in September 2016, this enabled to increase the capacity by 20% which is enough to meet the growing needs for heat of metropolitan city and facilities of the Universiade. “Ekibastuz SDPP-1 named after B. Nurzhanov” LLP completed the upgrading of 500kV-OS worth 18 bln.tenge in the end of November.

Generation sector’s projects are bringing the action of ceiling tariffs program to a close, adopted by the Government in 2009 the program ensured creation of necessary safety margin. The gap between installed and available capacity has reduced by over 64% or by 1 584 MW over 6 years (from 2 462 MW to 878 MW). Environmental effect from upgrading of thermal power plants is expressed in threefold reduction of ash emissions – from 108 to 36 thous.tons per annum.

Introduction of capacity market and balancing market within deadlines set by law is required in order to implement power sector development and modernization programs. This is connected with addressing the relevant issues of increasing the industry’s investment attractiveness, slowdown in modernization pace and privatization process. In 2017 we expect fundamental changes and systemic measures in power industry that rely upon global trends.

“Samruk-Energy” JSC implements comprehensive set of measures for environmental improvement and rational use of resources. The share of clean energy produced without hydrocarbon fuel burning has increased up to 15,7% of 22,5 bln.kWh generated across subsidiaries in 2016. Performance in regard to energy conservation and increasing energy efficiency as part of implementing the target-oriented program has improved by 3,4 %.

The company consistently reduces impact on the environment, including through increase in a share of alternative energy sources. The Development strategy by 2025 sets the goal of achieving a leading position with the share of renewables in capacities structure at the level of 10%.

The European Bank for Reconstruction and Development provides a significant support in this direction. It is planned to increase the capacity of Ereymentau wind farm up to 95 MW as well as “Shardarinsk HPP” JSC modernization is carried out in partnership with reputable financial institution.

“Samruk-Energy” JSC representing the interests of the State in power sector, plays an important role in plans of the Country for transition to «green» power industry. The company has signed the Memorandum of understanding with scientific center of Stanford University on joining the Stanford Energy 3.0 sector program. This cooperation will promote development of Kazakhstan’s low-carbon economy through a transfer of new technologies.

As a major supplier of electricity in Kazakhstan, “Samruk-Energy” JSC plays a key role in plans of the state for transition to environmentally friendly power system – which is why the Company stands ready to make its contribution to implementation of Kazakhstan’s third modernization announced by the Head of State. Holding of World Scientific and Engineering Congress WSEC-2017 during the international exhibition EXPO-2017 in Astana will provide us with a unique opportunity to assess trends in present day power industry and choose best development options tailored to specifics of Kazakhstani FES.

“Samruk-Energy” JSC | Integrated annual report
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