Today, global power industry faces a major task on finding the optimal balance between the components of the energy trilemma: economic affordability of electricity, security of supply and environmental sustainability. At this, usually priority of balancing trilemma components, to a large extent is determined by the level of development of the country and is shifted to economic availability of electricity in the case of developing countries, and in case of developed countries to environmental sustainability (Figure1)
Figure 1. Global energy trilemma, changing of imperative as the result of country’s development
Global development and the need to balance within the energy trilemma determine global energy trends, including the two most important:
Energy transition – increasing global sustainability:
- the rapid growth of RES share in developed countries;
- moderate growth in coal generation in certain regions or catching-up economies with the growth of its sustainability and “clean coal” technologies development.
In this direction Samruk-Energy must become a Kazakhstan leader in ensuring energy transition both in renewable energy and in “clean coal”.
The mentioned global energy trends, global economic trends and development trends of the country’s economy also determined by five institutional reforms proposed by the Head of State, identify key trends in the development of external environment and their impact on the Company’s business:
- Decrease in Kazakhstan’s economy growth rates, and as a result, the transition to a conservative forecast of electricity consumption growth;
- Weakening of the national currency, which would increase the cost of the Company’s investment program but will significantly increase the competitiveness of export sectors;
- Strengthening of environmental regulation of economy in Kazakhstan, the development of renewable energy sources;
- The need to develop competencies for energy transition in the long term as energy intensity of the national economy reduces;
- Intensive development of technologies – the growth of demand for innovations, increasing the possibilities of effective power generation, mining and processing of power generating coal;
- Integration of energy markets – the growth of export opportunities and increasing competitive pressure in the domestic market;
- Improving the social responsibility of business and the growth of the qualification requirements to employees – deepening of cooperation with employees and society, increasing productivity and production standards;
- In the long term – changing the structure of electricity market and optimization of tariffs by separating electricity and capacity market.