“Samruk-Energy” JSC | Integrated annual report
Strategy

Electricity market

Power industry is of particular importance for the economy of the Republic of Kazakhstan, as key industries of the country, such as metallurgy, oil and gas production, are characterized by high energy intensity. Accordingly, the competitiveness of Kazakhstan’s heavy industry and the quality of life of the population largely depend on reliable and high-quality power supply to consumers at affordable prices.

Electricity in Kazakhstan is mainly produced at thermal power plants – 87 %, hydroelectric power plants account for about 12 %, and the share of RES is insignificant and is about 1 %.

Kazakhstan’s electricity market is geographically divided into three zones

The northern zone – is Akmola, Aktobe, East Kazakhstan, Karaganda, Kostanay, Pavlodar, North-Kazakhstan and Astana city. 75 % of electricity of the RK total production is generated in the northern zone. Main coal deposits and water and energy resources are located in the northern zone.

As a consequence, the cost of electricity generation is quite low in the northern zone. Excess electricity is delivered to southern zone that suffers from power shortages and exported to the Russian Federation.

The southern zone – Almaty, Zhambyl, Kyzylorda, South-Kazakhstan regions and Almaty city. It is characterized by a shortage of electricity and a high level of electricity prices. The shortage is covered by supplies from the northern zone and partly from the Central Asian UPS.

The western zone – Mangistau, Atyrau, Western Kazakhstan. It has significant hydrocarbon reserves. Despite this, this zone experiences shortages of electricity and covers the deficit owing to supplies from the Russian Federation.

Electricity production in the Republic of Kazakhstan by types of power plants, mln.kWh

Power plants 2015 2016 2016/2015 Share in the RK, %
+/- %
TPP incl. 81,371.3 82,110.4 739.1 0.9 87.3
GT TPP 7,279.5 7,407.6 128.1 1.8 8
HPP 9,250.3 11,605.9 2,355.6 25.5 12.3
WPP 130.2 274.1 143.9 110.6 0.3
SPP 44.8 86.1 41.3 92.0 0.1
Total  90,796.6  94,076.5  3,279.9 3.6

 Kazakhstan’s electricity market is divided into wholesale and retail segments

The wholesale segment, limited to a minimum purchase of electricity in the amount of 1 MW, includes the following components: a decentralized market, participants of which purchase and sell electricity on mutually agreed terms; a centralized market, operated by “Kazakhstani Operator of Electricity and Capacity Market” JSC (KOECM); balancing the market to eliminate imbalances on a daily basis; as well as the market of system services, including power transmission and capacity reservation. The retail segment consists of energy transmission and energy supply organizations that supply electricity to retail consumers.

Competitive environment in power market

The following energy producing organizations were the most powerful competitors in the wholesale electricity in 2016:

Competitive companies Electricity generation volume in 2016
mln. kWh % of generation in the RK
“Eurasian Group” LLP 18,543.0 19.7 %
“Kazakhmys Energy” LLP 6,528.9 7.0 %
“Kazakhstan Utility System” LLP 4,385.6 4.7 %
“Central Asian Energy Corporation” JSC 7,036.80 7.5 %

Installed capacities by largest owners and operators of power plants

“Samruk-Energy” JSC 6,804 MW 30.9 %
ERG 3,262 MW 14.8 %
AES 1,481 MW 6.7 %
“MAEK Kazatomprom” JSC 1,330 MW 6.0 %
“Kazakhmys Energy” LLP 960 MW 4.4 %
Others 8,218 MW 37.3 %
Total 22,055 MW
“Samruk-Energy” JSC | Integrated annual report
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