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Structure of Power Industry in Kazakhstan

The Unified Power System of Kazakhstan (UPS) is a package of power plants, transmission lines and substations, providing reliable and quality electricity to the consumers of the country. Schematic map of electrical networks 1150-500-220-110 kV UPS of the Republic of Kazakhstan as of 2023

 

State regulation in power industry is carried out in order to:

provide maximum satisfaction of the demand of energy consumers and protection of the rights of participants in the electricity and heat market by creating competitive conditions in the market, guaranteeing to consumers the right to choose suppliers of heat and electricity;

ensure reliable and stable functioning of the electric power complex of the Republic of Kazakhstan;

provide unity of management of the electric power complex of the Republic of Kazakhstan as a particularly important system of life support for the economic and social complexes of the country.

The Ministry of Energy of Kazakhstan is the public authority that monitors and regulates in electric power industry.

 

Ministry of Energy of Kazakhstan shall:

  • implement the state policy in the power industry;
  • develop and approve a standard electricity supply contract;
  • develop and approve a standard contract for construction of the new generating installations;
  • develop and approve a standard contract for procurement of the services associated with maintaining readiness of electric capacity;
  • develop and approve a standard contract for services associated with maintaining readiness of electricity capacity to bear the power load;
  • develop and approve a standard contract for the creation of electric capacity with the participant of the wholesale market included in the Register of groups of persons (hereinafter referred to as the Register);
  • develop and approve a standard contract for purchase of services associated with maintaining readiness of the electric capacity to bear the load with the participant of the wholesale market included in the Register;
  • evelop and approve the rules for organization and operation of the wholesale electricity market;
  •  develop and approve the rules for the technical operation of power plants and networks;
  • develop and approve the rules for holding a tender for construction of the newly commissioned generating installations;
  • develop and approve the rules for operation of the balancing electricity market;
  • develop and approve the rules for organization and operation of the retail electricity market, as well as provision of services in this market;
  • develop and approve the rules for prevention of disturbances in the Unified Energy System of Kazakhstan and its rectification;
  • develop and approve the rules for energy expert assessment;
  • develop and approve the technical regulations in power industry;
  • develop and approve the power unit operation safety regulations;
  • develop and approve the safety rules for operation of thermal mechanical equipment of power plants and heating networks;
  • develop and approve the rules of power installation code;
  • develop and approve the instructions for drawing up a certificate of emergency and technological reservation of power supply;
  • develop and approve the rules of electricity use;
  • develop and approve the rules of heat use;
  • develop and approve the rules of provision of services by the system operator, and for organization and operation of the system and ancillary services market;
  • make a decision to include electricity in the list of acquired property (assets), purchased at auctions in accordance with the laws of the Republic of Kazakhstan;
  • develop and approve the rules for provision of services with ensuring reliable and sustainable electricity supply;
  • develop and approve the grid code;
  • develop and approve the rules of technical operation of electric installations of consumers;
  • develop and approve the safety rules for operation of electric installations of consumers;
  • develop and approve the fire safety rules for energy enterprises;
  • develop and approve the fuel supply explosion safety rules for preparation and combustion of pulverized fuel;
  • develop and approve the rules of establishing buffer zones for electric network facilities and special conditions for the use of land plots located within the boundaries of such zones;
  • develop and approve the rules of determining the size of land plots for placing supports of overhead transmission lines;
  • develop and approve the rules of establishing buffer zones for heating network facilities and special conditions for the use of land plots located within the boundaries of such zones;
  • develop and approve the rules of determining the compliance of power transmission organizations with the electricity transmission operation requirements;
  • develop and approve the safety rules during operation with tools and devices;
  • develop and approve the rules of investigating and accounting of technological disturbances in the power grid, power plants, district heating plants, electrical and heating systems;
  • develop and approve the rules of acceptance into operation of power facilities of power plants, electric and heating systems after technical rehabilitation;
  • develop and approve regulations on certification, rationalization, accounting and planning of jobs in the power sector;
  • develop and approve the rules of accounting for the supply of heat and heat carrier;
  • develop and approve the rules of arranging maintenance and repair of equipment, buildings and structures of power plants, heat and electric systems;
  • develop and approve the rules for approval of electric capacity limits of thermal power plants and measures to reduce such limits;
  • develop and approve the rules of human resources management in the energy utilities in Kazakhstan;
  • develop and approve the rules for organization of the centralized electricity trading;
  • develop and approve the rules for conducting qualification tests of knowledge of the rules of technical operation and safety rules by managers, specialists of organizations engaged in production, transmission of electric and heat power, to monitor the technical condition and safety of operation of electrical installations;
  • develop and approve the rules for conducting periodic inspection of the technical condition of power equipment, buildings and structures of power plants, electric and heat systems, as well as power equipment of consumers with the assistance of the expert organizations and manufacturing plants;
  • develop and approve the rules for organization and operation of the electricity power market;
  • determine the system operator;
  • design a template of the official certificate of the state technical inspector, a number stamp and a sealant tool;
  • develop and approve the rules for determining the norms of the operational fuel reserve in the autumn-winter period by energy-producing organizations;
  • approve the norms of the operational fuel reserve in the autumn-winter period for energy producing organizations;
  • develop and approve within its competence, regulatory legal acts of the Republic of Kazakhstan in the field of production, transmission and consumption of electric and heat energy, as well as the provision of services associated with maintaining readiness of electric capacity and the services associated with maintaining readiness of electric capacity to bear the load;
  • develop and approve the standard reliability indicators of power supply, as well as the procedure for their determination;
  • develop and approve regulatory legal acts governing the rates of consumption of electric and hear power for the technological needs of power generation and power transmission organisation;
  • develop and approve regulatory technical documents in design, construction, operational and technical and economic characteristics of equipment;
  • monitor state compliance by energy producing organizations with the requirements of Article 13.3-2.3 of the Electric Power Industry Law;
  • determine the operator of the centralized market auction;
  • develop and approve the forms of acts of state technical inspectors;
  • determine the specifics of operation and organization of the wholesale electricity market for the regions who have no direct electricity link throughout the territory of the Republic of Kazakhstan with the unified power system of the Republic of Kazakhstan;
  • develop and approve the procedure for issuing an official certificate, number stamp and sealant tool  to the state technical inspector;
  • develop and approve the rules for the functioning of an automated commercial electricity metering system for the participants of the wholesale electricity market;
  • develop and approve requirements for expert organizations to implement energy expert assessment;
  • develop and approve terms of reference for the development of an investment program;
  • develop and approve a perspective scheme for the distribution of electrical capacities;
  • hold a tender for the construction of newly commissioned generating units;
  • based on the tender for the construction of newly commissioned generating units, conclude a contract with the winner of this tender;
  • determine the winner based on the results of a tender for the construction of newly commissioned generating units, with which a single purchaser shall conclude a contract for procurement of the services associated with maintaining readiness of electric capacity;
  • approve electricity and capacity balance forecasts;
  • develop and approve the rules for obtaining a certificate of readiness for autumn-winter period by energy-producing, energy-transmitting organizations;
  • carry out international cooperation in electric power industry;
  • approve cap tariffs for energy-producing organizations;
  • approve cap tariffs for the services associated with maintaining readiness of electric capacity;
  • approve the groups of energy-producing organizations that sell electrical energy;
  • determine the procedure for approving the cap tariff for electricity, the cap tariff for balancing electricity and the cap tariff for the service to maintain the readiness of electric capacity;
  • monitor state compliance by the system operator with the requirements specified in Article 15-2.2 of the Electric Power Industry Law;
  • post on its Internet resource information on violations of the procedure for sale of electricity and services for maintaining availability of electric capacity by energy-producing organizations and the measures taken to rectify the identified violations;
  • develop and approve the methodology for determining the fixed profit, taken into account when approving the cap tariffs for electricity, as well as the fixed profit for balancing, taken into account when approving the cap tariffs for balancing electricity;
  • determine the market council, as well as develop and approve the rules for the operation of the market council;
  • establish individual tariffs for the service associated with maintaining readiness of electric capacity, the scope of the service associated with maintaining readiness of electric capacity and the timing of its purchase for contracts for procurement of the services associated with maintaining readiness of electric capacity, concluded by a single purchaser with the winners of tenders for the construction of the newly commissioned generating installations;
  • conclude investment agreements for modernization, expansion, reconstruction and (or) updating with existing energy-producing organizations;
  • develop and approve the procedure for development of electricity and capacity balance forecasts;
  • develop and approve regulatory technical documents in electric power industry;
  • determine a single purchaser;
  • approve cap tariffs for the balancing electricity;
  • develop and approve the rules for the certification of generating units electric capacity;
  • establish individual tariffs for the service associated with maintaining readiness of electric capacity, the scope of the service associated with maintaining readiness of electric capacity and the timing of its purchase for contracts for procurement of the services associated with maintaining readiness of electric capacity, concluded by a single purchaser with existing energy-producing organizations which conclude an investment agreement for modernization, expansion, reconstruction and (or) updating with the authorized body;
  • develop and approve the rules for determining the scope of services for maintenance of electric capacity availability for contracts on purchase of services for maintenance electric capacity availability that shall be concluded between a single purchaser and operating generation organizations including combined heat and power plants;
  • develop and approve the rules for calculating and posting the price on the Internet resource by a single purchaser of the service to ensure readiness of electric capacity to bear the power load;
  • develop and approve the rules for acceptance for consideration, and consideration and selection of investment programs for modernization, expansion, reconstruction and (or) upgrade, conclusion of investment agreements for modernization, expansion, reconstruction and (or) upgrade, corresponding conclusion of contracts on purchase of services for maintenance of readiness of electric capacity and setting individual tariffs for the service associated with maintaining readiness of electric capacity, the volumes and terms of purchase of services for maintenance of  electric capacity for these contracts;
  • develop and approve the rules for determining the shortage and surplus of electricity in the unified power system of the Republic of Kazakhstan;
  • develop and approve the rules for subsidizing energy-producing organizations for the purchase of fuel  to secure uninterrupted heating season;
  • form and maintain the Register in accordance with the approved rules;
  • develop and approve the rules for the formation and maintenance of the Register;
  • develop and approve the rules for the participation of consumers included in the Register in the creation of electric capacity to cover the forecast shortage;
  • agree on the location (site), kind and type of fuel for generating plants commissioned by energy-producing organizations and consumers included in the Register;
  • coordinate the local executive bodies of regions, cities of republican significance, the capital city when subsidizing the costs of organizations in heat production for repayment and servicing loans from international financial organizations extended for the projects to modernize energy supply systems;
  • approve the rules for subsidizing the costs of heat producing organizations for repayment and servicing of loans from international financial organizations extended for the projects to modernize energy supply systems;
  • develop and approve the rules for including consumers in the list of power plants;
  • approve the list of power plants;
  • exercise other authorities  as defined in the present Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
  • Control in the power industry is in the hands of the public authority for state energy control: the Committee for State Energy Supervision of the Ministry of Energy of the Republic of Kazakhstan. 

 

The authority for state energy supervision and control shall monitor:

  • the compliance with the requirements of regulatory legal acts of the Republic of Kazakhstan in electric power industry;
  • the operation and technical condition of power equipment of power plants, power grids, electric networks of consumers;
  • the reliability and safety of production, transmission, supply and consumption of electricity;
  • the denial of access to or suspension from work on electric installations of personnel who have not passed the qualification tests of the rules of technical operation and safety rules in electric power industry.

 

Energy control shall monitor:

  • the compliance with technical specifications for the quality of electric and heat power;
  • the compliance with the regulatory legal acts of the Republic of Kazakhstan in electric power industry within their competence;
  • rational and economical use, optimization of production modes, transmission, consumption of electric and heat power;
  • the readiness of power plants, electrical and heating systems for operation in the autumn-winter period.

 

The authority for state energy supervision and control shall:

  • participate in the work of the commissions of electric power enterprises to assess the readiness of facilities and equipment for operation in the autumn-winter period;
  • keep records of technological emergencies in operation of power plants, electrical networks, which led to the outage of the main equipment, fires, explosions, the islanding of the unified power system of the Republic of Kazakhstan into several parts, the massive of electricity consumers shut down;
  • receive notifications about the beginning or termination of activities, and also maintain, place and update on the Internet resource the register of expert organizations for conducting energy expert assessment in accordance with the category;
  • considerate materials on administrative cases in electric power industry within its competence in accordance with the laws of the Republic of Kazakhstan on administrative offences;
  • apply to the court with regard to and participate in the court considerations of violations of electric power industry laws in the Republic of Kazakhstan;
  • send to the state body responsible for management of the natural monopolies, information on the inconsistency of the activities of a natural monopoly providing service of electricity transmission with the requirements specified in Article 13-1.6 of the Electric Power Industry Law

 

The authority for state energy supervision and control shall have the right, in the manner prescribed by the laws of the Republic of Kazakhstan, to:

  • have full access to electric and power installations;
  • prepare proposals for improving the electric power industry laws of the Republic of Kazakhstan;
  • engage experts in the inspection of power equipment, comprehensive inspections of power organizations and the investigation of technological failures in the operation of power equipment of power plants, power grids;
  • certify the readiness, qualified or unqualified, as necessary, with additional explanations, materials and requirements to the documents submitted to obtain a certificate of readiness, the scope of which shall comply with the requirements of the laws of the Republic of Kazakhstan on electric power industry, and also refuse to issue a certificate of the readiness in case of failure to meet the requirements to the scope, the content of the submitted documents confirming the fulfilment of the conditions and requirements established by the laws of the Republic of Kazakhstan on electric power industry to obtain a certificate of the readiness.

The Committee for Regulation of Natural Monopolies of the Ministry of National Economy of the Republic of Kazakhstan is the state body, in the manner prescribed by the laws of the Republic of Kazakhstan, performing management of the natural monopolies and regulated markets (including in electric power industry).

The Agency of the Republic of Kazakhstan for the Protection of Competition is the body that shall control and supervise the activities of market entities, protect and develop competition, and protect consumer rights in the implementation of the operations by the market entities holding a dominate position in a certain commodity market (including the electricity market).

 

Legislative and other normative legal acts in force in the field of electric power industry of the Republic of Kazakhstan:

  • The Law of the Republic of Kazakhstan 'On Electric Power Industry' dated 9 July 2004;
  • The Law of the Republic of Kazakhstan ‘On Energy Saving and increase of Energy Efficiency’ dated 13 January 2012;
  • The Law of the Republic of Kazakhstan ‘On supporting the use of renewable energy sources’ dated 4 July 2009;
  • Rules for organization and operation of the wholesale electricity market in Kazakhstan, approved by Order of the Ministry of Energy of the Republic of Kazakhstan No. 106 dated 20 February 2015;
  • Rules for provision of services by the system operator, and for organization and operation of the market of system and auxiliary services, approved by Order of the Ministry of Energy of the Republic of Kazakhstan No. 691 dated 3 December 2015;
  • Rules for operation balancing electricity market, approved by Order of the Ministry of Energy of the Republic of Kazakhstan No. 112 dated 20 February 2015;
  • Rules for organization and functioning of the retail electricity market, as well as provision of services in this market, approved by Order of the Ministry of Energy of the Republic of Kazakhstan No. 111 dated 20 February 2015;
  • Rules for the organization and operation of the electricity capacity market, approved by order of the Minister of Energy of the Republic of Kazakhstan No. 152 dated 27 February 2015;
  • Other legislative and other normative legal acts.
  • Samruk-Kazyna JSC (the sovereign wealth fund) was established through merger of Kazakhstan Holding Company on Management of the State Assets Samruk and Sustainable Development Fund Kazyna by the decree of the President in October 2008 in order to improve the current model of management of national companies of the Republic of Kazakhstan and effective management of state assets. 
  • Samruk-Kazyna JSC is a public holding company owning and managing the national companies in various sectors of economy, including electric power industry, telecommunications, transport and national development institutes.

 

Industry Trends Review (balance)

Annual Peak Load

  • The maximum load in 2022 of 16,459 MW was registered on 7 December at 10.39 AM. Compared to 2021 (14 November, 07.00 PM) the maximum load increased by 633 MW or 3.9%. At the same time, 676 MW of digital mining were load shedded.
  • The total generation at the annual maximum load amounted to 15,203 MW and decreased by 235 MW or 1.5% compared to 2021.
  • The cross-border net power flow amounted to 1256 MW. These include 1462 MW were received from Russia and 206 MW were delivered to Central Asia.

 

Electricity Generation

Electricity generation in the reporting 2022 in Kazakhstan was 112,865.9 million kWh,