“Samruk-Energy” JSC | Integrated annual report
Strategy

The work of Trade house

Electricity

The Trade house was established in 2015 as part of “Samruk-Energy” JSC transformation program and ensures the centralization of SA sales functions (transition to an operating holding company). The main tasks are:

  • Centralization of sale, trading and operations commercial optimization functions;
  • Optimization of the load across all generating subsidiaries of the Company;
  • Management of key clients in the Republic of Kazakhstan and creation of a competitive offer;
  • Participation in development of proposals for adjusting the regulatory environment;
  • Analysis of electricity and coal sales market.

In the context of deteriorating market conditions, capacity surplus, Samruk-Energy’s Trade House successfully takes all possible actions to increase the electricity sales volumes of power plants which are a part of “Samruk-Energy” JSC:

  1. The trade house directly communicates with the electricity market participants in Kazakhstan and neighboring countries, and also carries out commercial dispatching – distribution of volumes of electricity supplies to Kazakhstan’s consumers by subsidiaries, based on the feasibility of subsidiaries and associated power plants’ loading.
  2. The trade house directly forms daily schedules of SAs, optimally distributing the stated volumes at power plants of SA. Thanks to which, the Trade House prevented unplanned shutdowns of power units (due to declared low volumes) of ESDPP-2 in 2015 – 28 times, in 2016 – 36 times, by redistributing volumes to this power plant.
  3. During 12 months of 2016 the increase in electricity production compared to the same period of previous year across Samruk-Energy group was 6.4 % (22.5 billion kWh). At the same time, this indicator for main competitors  – “Kazakhmys Energy” LLP was: –4.6 %, ERG: –5 %.
name 12 months of 2015 12 months of 2016 deviation %
1 “Samruk-Energy” JSC, total: 21,141.97 22,485,1 1 343.1 6.4
“APP” JSC 5,085.6 5,911.4 825.8 16.2
 “Aktobe CHP” JSC 666.4 905.7 239.3 35.9
“Ekibastuz SDPP-1” LLP 10,728.6 9,037.3 –1,691.3 –15.8
 “Ekibastuz SDPP-2” JSC 3,211.0 4,976.1 1,765.2 55.0
 “Shardarinsk HPP” JSC 465.3 334.0 –131.2 –28.2
“Moynak HPP” JSC 902.8 1,165.5 262.8 29.1
 “Samruk-Green Energy” LLP 3.2 3.2 0.1 2.3
“First Wind Power Plant” LLP 79.2 151.8 72,5 91,6
2 “Kazakhmys Energy” LLP, total 6,843.0 6,528.9 –314.1 –4.6
Karaganda GRES–2 “Kazakhmys Energy” LLP 5,130.2 4,403.4 –726.8 –14.2
Balkhash CHP “Kazakhmys Energy” LLP 723.6 869.0 145.4 20.1
Zhezkazgan CHP “Kazakhmys Energy” LLP 989.1 1,256.5 267.4 27.0
3 ERG 19,520.6 18,543.0 –977.6 –5.0
CHP of “Aluminum of Kazakhstan” JSC 2,455.1 2,493.6 38.5 1.6
PP of “EEC” JSC 14,668.0 13,868.9 –799.1 –5.4
CHP of “SSOMPE” 1,434.7 1,220.4 –214.3 –14.9
SPU-37 of PP AFP TNC “Kazchrome” 239.5 237.3 –2.2 –0.9
GTU of PP AFP TNC “Kazchrome” 723.4 722.8 –0.6 –0.1
4 “Zhambyl SDPP” JSC 2,872.8 2,466.0 –406.8 –14.2
5 CHP-6 of MUS “Kyzylordateploelectrocenter” 105.8 85.4 –20.4 –19.3
6 Cogeneration GTPP of MUS “Kyzylordateploelectrocenter” 197.1 107.5 –89.6 –45.4
7 “Karaganda Energocenter” LLP, total 3,595.0 4,385.6 790.6 22.0
CHP-1 “Karaganda Energocenter” LLP 106.9 92.4 –14.5 –13.5
CHP-3 “Karaganda Energocenter” LLP 3,488.2 4,293.2 805.0 23.1
8 Irtysh HPP, total 6,564.4 7,819.2 1,254.8 19.1
Bukhtarminsk Hydropower complex of “Kazzinc” LLP 2,977.4 3,708.0 730.6 24.5
“AES Ust-Kamenogorsk HPP” LLP 1,711.9 1,881.6 169.7 9.9
“AES Shulbinsk HPP” LLP 1,875.1 2,229.6 354.5 18.9
9 CAEPCO 6,529.4 7,036.8 507.4 7.8
CHP-2 “Pavlodarenergo” JSC 711.2 635.9 –75.3 –10.6
CHP-3 “Pavlodarenergo” JSC 2,942.8 3,105.7 162.9 5.5
Ekibastuz CHP “Pavlodarenergo” JSC 66.2 87.3 21.1 31.8
PP CHP-2 “SEVKAZENERGO” LLP 2,809.1 3,207.9 398.8 14.2
  1.  The Trade house will on an ongoing basis resolve issues related to the electricity supply to consumers during emergency shutdowns of power units, by substituting out-of-service facilities due to emergency from other energy sources.
  2. With direct involvement of the Trade house, a flexible pricing policy in conditions of capacity surplus in the market and optimization of the load in respect of generating enterprises is implemented; ESDPP-1, ESDPP-2, Moynak HPP successfully sells electricity at centralized auctions for all those wishing to purchase electricity.
No. period Mln.kWh
1 2014 0.379
2 2015 58.5
3 2016 3,019

Over 12 months of 2016 the volume of electricity sales at centralized auctions was 3,019 mln. kWh, which is 51 times more than last year’s figure (58.5 mln. kWh). Providers of electricity through auction were ESDPP-2 (1,731 mln. kWh), ESDPP-1 (1,038 mln. kWh) and “Moynak HPP” JSC (250 mln. kWh).

The sale of electricity through centralized auction allowed reducing idle discharges (217 mln. c.m of water) and increasing the profitability of MHPP, loading power units of SDPP-1 andSDPP-2, attracting consumers of KUS and CAEPCo groups. The supply of electricity through centralized auction (CA) continues daily.

The buyers of electricity at the centralized auction are: “EnergoKontrakt Plus” LLP, “Astanaenergosbyt” LLP, “Energosnab XXI” LLP, “Ankil” LLP, “Electrodil” LLP, “Energokompani PV” LLP, “Ontustik Zharyk” LLP, “Kaz Elektro” LLP, “Kazenergocenter” LLP, “Temirzholenergo” LLP, “EnergoPromTechno” LLP, “Garantenergo” LLP, “EnergoKontaktPlus” LLP, “Promsnab-Astana” LLP, “Karaganda Energosbyt” LLP and others.

  1. Owing to implementation of flexible pricing policy, the Trade House managed to achieve an increase in the volume of electricity purchases from “Samruk-Energy” JSC energy sources by enterprises that are part of “Samruk-Kazyna” JSC.

So, the share of electricity purchase by:

  • “Kazakhstan Temirzholy” JSC from “Samruk-Energy” SA (SDPP-1,2) increased from 44 % (data for 2015) up to 78 % (data for 2016).
  • “KEGOC” JSC fully started making scheduled purchase of electricity from “Samruk-Energy” JSC SA (except for floods and snow-melt floods in the Irtysh cascade of HPPs). To date, 100 % of the declared volume of “KEGOC” JSC belongs to ESDPP-1.
  • Supply for enterprises of NAC “Kazatomprom” has increased from 99.7 mln. kWh (2015) to 180 mln. kWh (2016) or by 80 %.
  1. SDPP-1 and SDPP-2 concluded 188 electricity sale and purchase agreements with all wholesale market entities (excluding centralized trades for the day ahead and during the operating day), which is 71 agreements more than in 2015. The contractual volume is 26,928 mln. kWh, which is 11,565 mln. kWh higher than the sales plan of two plants (15,363 mln. kWh).
  2. In 2016 SDPP-1 and SDPP-2 attracted 38 entities of the wholesale market (“Transitenergoservis” LLP, “Kazenergocenter” LLP, “Angrensor energo” LLP, “Samga Energo”LLP, “Petro Group” LLP, “ArcelorMittal Temirtau” JSC, “ACIG” JSC, “Energo contract plus”, “Karaganda Energosbyt” LLP, “Garantenergo” LLP, “Kyzylorda REC” JSC, etc.), which were supplied with 2.7 bln. kWh.
  3. In 2016, ESDPP-1 and ESDPP-2 sent about 560 quotations for supply of electricity, incl. to retail market entities. About 196 meetings
    regarding cooperation were held with wholesale market consumers during 12 months of 2016.
  4. Upon instructions of the Republic of Kazakhstan Government, “Samruk-Energy” JSC renders direct support to Kazakhstan producers by providing discounts from the selling price of electricity to large industrial enterprises. Contracts for 2016 were concluded with 13 entities for a volume of 8,175 billion kWh (discount amount –14.8 bln. KZT). 5.2 bln. kWh have been supplied to these entities in 2016 (discount amount –9.3 bln. KZT). A total of 33.8 bln. tenge discount was provided between 2010–2016.
  5. With direct participation of the Trade House, ESDPP-2 concluded an agreement for supply of electricity to the Russian Federation, according to which, electricity exports has resumed since March 17, 2016. 1,858 bln. kWh was exported in 2016.
  6. With direct involvement of the Trade house, an agreement for export of electricity to Kyrgyzstan was concluded between ESDPP-1 and “Power Plants” JSC. Export started on April 16 this year. The volume of exports was 133 million kWh. in the period from April to June 2016.
  7. Owing to export of electricity to Kyrgyzstan and Russia, the loading of of unused capacities at “Ekibastuz SDPP-1” LLP and “Plant Ekibastuz SDPP-2” JSC plants has increased substantially, which, together with the increase in the production volumes of “APP” JSC, “Aktobe CHP” JSC, “Moynak HPP” JSC allowed maintaining and increasing sales volumes as compared to 2015 in the context of unfavorable market conditions and tough competition.
“Samruk-Energy” JSC | Integrated annual report
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