experience of kazakhstan

Experience of Kazakhstan

Sergey KatyshevAdviser to the President – Head of Projects

Management DepartmentKazakhstan Electricity Grid Operation Company

(KEGOC)

UNECE Roundtable

“Facilitating Investments in the Electricity Sector in the Transition Economies”

Geneva, 19 November 2003

Main Characteristics of Kazakhstan Power System

• Power Generation

There are 54 generation plants in Kazakhstan with total installed capacity of 18 187 MW.

• 8330 MW at four large thermal power plants• 2228 MW at hydroelectric power plants• 7235 MW at 38 combined heat and power plants• 394 MW at gas turbine power plants

Available capacity is 13869 MW

The larger thermal and hydro generating plants of national importance are under NDC supervision



Power Transmission

• Power transmission lines are of 0,4-6/10-35-110-220-500 and 1150 kV• Power transmission lines (total length – 45,5 thousands km) cover the large geographic area• Long transmission lines and as result large reactive power generation• Dispatch control is maintained through 9 Regional Dispatch Centers (RDC) and National Dispatch Center (NDC)

Chang e s o f the price s fo r the e le ctric po w e r fo r the pe rio d 1990-2002 ye ars , ce nt /kw th

0

1

2

3

4

5

6

7

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Backgrounds for market reforms in Kazakhstan’s electricity sector

Decree of President of the Republic of Kazakhstan “On Power Industry” having the force of law, December 1995

Programme for power sector privatisation and restructuringadopted by the Government of RK in 1996

Programme for further development of electricity market in 1997-2000 adopted by the Government of RK in 1997

List of laws and regulations relevant to investment in the energy sector (1)

• Civil Code (General Part) No. 268-XIII of 27 December 1994;

• Law No. 266 of 27 December 1994 "on Foreign Investment";

• Decree of the President having the force of a Law No. 2724 of 23 December 1995 " on Electric Energy ";

• Decree of the President having the force of a Law No. 2721 of 23 December 1995 "on Privatisation";

• Decree of the President having the force of a Law No. 2250 of 2 May 1995 "on Business Partnerships";


• Decree of the President having the force of a Law No. 2727 of 25 December 1995 "on State Registration of the Rights of Real Estate and Transactions with Real Estate";

• Decree of the President having the force of a Law No. 2444 of 31 August 1995 "on Banks and Banking Activities in the Republic of Kazakhstan";

• Decree of the President having the force of a Law No. 2723 of 23 December 1995 "on Mortgage of Real Estate";

• Decree of the President having the force of a Law No. 2350 of 28 July 1995 "on Oil";


• Decree of the President having the force of a Law of 5 October 1995 "on Production Co-operatives";

• Decree of the President having the force of a Law No. 2337 of 19 June 1995 "on the Legal Status of Foreign Citizens".

• Decree of the President having the force of a Law No. 2828 of 27 January 1996 "on Mineral Resources and the Use of Mineral Resources";

• Law No. 6-1 of 10 June 1996 "on Copyright and Connected Rights";

• Law No. 54-1 of 24 December 1996 "on Currency Regulation";


• Law No. 210-1 of 25 December 1997 "on Energy Conservation";

• Law No. 75-1 of 28 February 1997 "on State Support to Direct Investment";

• Law No. 67-1 of 21 January 1997 "on Bankruptcy";• Law No. 78-1 of 5 March 1997 "on the Registration of

Transactions with Securities in the Republic of Kazakhstan";

• Law No. 77-1 of 5 March 1997 "on the Market of Securities";

• Law No. 281-1 of 10 July 1998 "on Joint-Stock Companies";


• Law No. 220-1 of 22 April 1998 "on Partnerships with Limited and Additional Liabilities";

• Civil Code (Special Part) No. 409-1 ZRK of 1 July 1999;• Law No. 427-1 of 16 July 1999 "Patent Law of the

Republic of Kazakhstan";• Law No. 456-1 of 26 July 1999 "on Trademarks, Service

Marks, and Appellation of Origin";• Law No. 464-1 of 2 August 1999 "on State and State-

Guaranteed Borrowing and Debt";


• Law No. 126-II of 18 December 2000 "on Insurance Activities";

• Law of 19 January 2001 "on Competition and Restriction of Monopolistic Activities";

• Law of 24 January 2001 "on Land";

Kazakhstan Power Transmission Rehabilitation Project

Kazakhstan Power Transmission Rehabilitation Project

KEGOC – General Information• Length of KEGOC power lines:

23606 km, including:1422 km of lines with a voltage of 1150kV5474 km of lines with a voltage of 500kV15978 km of lines with a voltage of 220kV

• KEGOC power grid consists of 70 substations, including:3 substations rating 1150kV15 substations rating 500kV49 substations rating 220kV

• Total rated capacity of transformers: 32087 MVA

Project Mission

Improve reliability and quality of electric supply through the refurbishment of transmission substations and modernization of dispatch control systemDevelop competition through development of electricity market and improved access to the transmission networkReduce KEGOC’s operating costs and increase the volume of render services

Benefits of the Project

• Savings in the operating & maintenance costs of the transmissionnetwork;

• Improved reliability and quality of electricity supply with consequent reduction in the damage inflicted on consumers by power curtails and blackouts;

• Reduced transmission losses• Reductions in reserve capacity requirements by sharing reserves

through the electricity Capacity Reserve Pool;• Improved economic dispatch of fuel to generation plants and

consequent downward pressure on wholesale market of electricity;

• Savings of telecommunication costs;• Cost benefits for consumers from expanded trading opportunities

between Northern and Southern networks.

Project Financing

• IBRD – 140 mln.US$• EBRD – 45 mln.US$• KEGOC co-financing - 73,4 mln.US$

TOTAL for the Project - 258,4 mln.US$

Power Transmission Rehabilitation Project

•HV equipment• Circuit Breakers•Disconnect Switches and Post Insulators•Voltage Transformers•Current Transformers•Surge Arresters•Shunt Reactors

•Relay Protection & Substation Automation•SCADA/EMS•Meters•Commercial Metering System

•Telecommunications•PLC•RRL•Private Branch Exchanges (PBX)•Satellite Communications Network•Guaranteed Power Supply Systems•Corporate Information Network

•MIS•Electricity Trading System

experience of kazakhstan

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