Энергетический сектор Казахстана

Please find bellow the issues to be covered for tomorrow's discussion session, the topic of which is "Energy in your country: an overview":

 

- Main resources of energy sector (this includes types of resources used for generating an energy)

- Natural reserves of a country (reserves-to-production ratio)

- Supply and demand sides of energy sector (i.e. production and consumption)

- Export and import

- Efficiency of energy sector

- Contribution of energy sector in economy

 

- Investment flow in energy sector

- The position of a country in the international arena (i.e. country's position towards international trends in the energy sector, including pricing, agreements and other)

- Environmental issues

- Policy for energy sector (including regulation, structure of energy sector)

- Regional cooperation within the energy sector

- Prospects of and forecasts for the energy sector of each country

 

 

Инвестиции и инновации  носят преимущественно экзогенный характер

Приток инвестиций является основным фактором индустриально-инновационного развития страны. На сегодняшний день наблюдается тесная корреляция между потоками инвестиций и внедрением инноваций, новых технологий.

В Казахстане инновационная активность промышленных предприятий находится на низком уровне. Всего 4,8% предприятий (на 01.01.07) осуществляют разработку и освоение инноваций.

Общую картину инновационных процессов  в стране (на 01.01.07) определяют практически  две отрасли – металлургия (39,5%) и горнодобывающая промышленность (19,6%).

Опыт показывает, что инновации  в другие сектора экономики придут только при мощной поддержке государства. Последние 2 года макроэкономическая политика в значительной степени направлена на повышение восприимчивости экономики к инновациям.

Kazakhstan has launched a new strategy 'Kazakhstan 2050' to define our country’s long-term development in the 21st century. Within the strategy, main directions of development of extractive industry have been laid out:

• To ensure that regions of Kazakhstan are interested in attracting investments, the moratorium on subsurface use permits will be abolished.

• Kazakhstan will move from simple delivery of commodities to establishing partnerships in area of energy resource processing and exchange of new technologies. By 2025 our country should fully satisfy our internal market with fuels and lubricants in accordance with new ecological standards. 
• Kazakhstan will attract investors only on the conditions of transfer of modern technology for extraction and processing. Investors will be allowed to extract and use raw materials only in exchange for creating new production facilities on the territory of our country.

• Kazakhstan is set to become the regional magnet for investment by becoming an attractive place for investments and technology transfer.

• All extracting enterprises must introduce only eco-friendly production techniques

 

 

Kazakhstan's win the right to host Expo 2017 has caused a positive reaction abroad.

Electric power industry of Kazakhstan

Kazakhstan has large reserves of energy resources and lives by the sale of natural energy reserves. The activity of electricity generation, transmission and distribution, operation of power plants, power grids and substations, as well as electricity purchase for resale, are all subject to licensing. Until 2010, Kazakhstan was exporter of electricity, and after 2010 became importer, in another words consuming more energy than it produces. North Kazakhstan exports electricity from Ekibastuz State District Power plant (SDPP-1), to Russia, and south Kazakhstan buys it from the south (Kyrgyzstan and Uzbekistan).

According to Bourabai Research Institution, the total installed capacity of all power plants in Kazakhstan is 19,000 MW in the same time the actual capacity is about 14,558 MW. Kazakhstan produces 86 billion KWh electricity per year. The electric power consumption in Kazakhstan is 3.9 MWh per person in a year against 6.7 - Russia, 14 - U.S. 3.2 - in China. Unfortunately, most of the power generation is less than the installed capacity (the level of production in 1990 - 87.4 billion KWh). Power generation types: HPP (hydro power plant) - 12.3% and TPP (thermal power plant) - 87.7%, including: CPP (condensing power plant) - 48.9%; CHP (combined power plant) - 36.6%; GTPP (gas turbine power plants) - 2.3%. About 72% of the electricity generated in Kazakhstan from coal, 12.3% - from hydro, 10.6% - from gas and 4.9% - from oil. Thus, there is four basic types of power plants, that generating 99.8% of electricity, and alternative sources less than 0.2%.¹

Electric power stations are divided into national importance, industrial plants and power stations of the regional destination. Electric stations of national importance include large thermal power plants (GTPP) and hydraulic power plants of high power (HPP) that provide the production and sale of electricity to customers in the wholesale electricity market of the Republic of Kazakhstan.

For transparency purposes, in terms of its activity, the Agency of Natural Monopolies Regulation holds public hearings before making tariff (prices, rates of charge) setting decisions for regulated services (goods, works). Public hearings are held with members of the parliament, representatives of the governmental bodies, consumers and their public associations, mass media, independent experts and natural monopoly entities.

According to European Bank for Reconstruction and Development, in 2008 the Agency of Natural Monopolies Regulation held 850 public hearings: 366 on the consideration of tentative tariffs, 216 on the consideration of the draft technical losses, 268 on the execution of tariff estimates.²

In August 2010 the press service of the Department of the Agency of Natural Monopolies Regulation in capital reports introduced differentiated tariff for electricity.

According to public information reports LP "Astanaenergosbyt" has applied in Department of the Agency of Natural Monopolies Regulation in capital to raise the cost of electricity from 1 August to 7.87 tenge without VAT which is higher than the current price by 0.07 tenge. The Department, after consideration of this notification, agreed change it to average sale tariff of 7.41 tenge, excluding VAT, per 1kWh, with a decrease from the current rate by 0.41 tenge. Based on this rate of average sale, The Department also agreed on the following differentiated tariffs for electricity. The calculations were made based on the quantity of individuals and in the zones of the day.

Thus, the minimum tariff for electricity depending on the volume of consumption of the individuals that use electric cookers (the value of consumption - 90 kWh) is equal to 6.11 tenge excluding VAT (6.84 including VAT) per 1 kWh, and the maximum - 8.89 tenge without VAT (9.96 including VAT). For individuals who do not use electric cookers (the value of consumption - 70 kWh), the minimum rate for 1 kWh is equal to 6.21 tenge excluding VAT (6.96 including VAT) and the maximum 8.89 tenge without VAT (9.96 tenge including VAT). 
Differentiation for 1 kWh by day zones was as follows: night tariff zone is 2.02 tenge excluding VAT (2.26 tenge including VAT) and the daily zone - 9.43 tenge excluding VAT (10.56 tenge including VAT).

There is also a three-band system and consumption metering electricity, which is divided into tariffs night, day and evening zone. The cost of night tariff per 1 kWh is 2.02 tenge excluding VAT (2.26 tenge including VAT), a day zone tariff is 7.41 tenge excluding VAT (8.30 tenge including VAT) and evening zone tariff is 15.32 tenge excluding VAT (17.16 tenge including VAT).³

According to European Bank for Reconstruction and Development there is more than 60 power plants with different forms of ownership (power producers), with the total available capacity about 15,000 MW and the total installed capacity of 18,990 MW. Generators and customers have a right to non-discriminatory access to the grid. Separate fee for access to networks is not currently provided. Until January 2009, in the Republic of Kazakhstan was the next order: if the connection to the network leads to its expansion and renovation, the owner of the connection had to compensate for the network company. The board was established in accordance with the methodology approved by the Agency of Natural Monopolies Regulation, in view of the connected capacity and payment for a unit of outlined power in the development of the network of company. In order to support the business, such payments have been canceled since December 2008. ⁴

Tariffs for electricity transmission are set depending on the zone pricing (eight zones power). Zonal tariffs include payment for the use of the national electricity network and the fee for the transfer of power in a given area and the amount of which depends on the energy shortage in a particular area, and network bandwidth.

According to European Bank for Reconstruction and Development distribution rates are fixed as “entry tariffs”, which is calculated according to one of two groups of voltage - 220/110/35 KW 10/6-0.4 KW. The tariffs are fixed to cover: standard technical losses; excessive losses of up to 0.8% of the volume of rendered services, provided that the distribution company implements an investment program for reducing the excessive losses approved by a corresponding regulatory agency; and excessive losses of up to 5% of the volume of rendered services (per year), provided that the average value of entry tariff was approved for the distribution company. Moreover end-user tariffs are made up of expenses of an energy supply company for purchase of electricity and payment for its transportation, sales market-up and profit.⁵

The Law on natural monopolies stipulates that the tariffs for regulated services (goods, works) of a natural monopoly entity set by an authorized body and shall not be lower than the costs of inputs needed for rendering such regulated services, and shall consider the possibility of getting a profit to ensure efficient functioning of a natural monopoly entity.⁶

Thus the majority of end-user tariffs is regulated and tariffs for distribution companies are low, limiting revenue available to companies to rehabilitate and develop the networks.

Today, power sector is one of the most important driving forces of the world progress. There is many types of power plants in the world and government regulation in terms of tariffs is extremely important for the state. Kazakhstan is one of the most rapidly developing countries in central Asia that is why activity of electricity generation, transmission and distribution, operation of power plants, power grids and substations, as well as electricity purchase for resale, are all subject to licensing and should be regulated for the benefit of citizens of Kazakhstan.

 

 

 

 

Energy Sector

Kazakhstan is a growing economic power with a strong resource base. The country has 3% of the world’s raw materials and a natural resource base of over $300,000 per capita, which is among the highest in the world and is twice the level of Russia and higher than Australia. Oil plays a big role in Kazakhstan. With nearly 40 billion barrels in reserves and 2 percent of global production, the country has the world’s ninth largest proven reserves and is among the 20 largest oil producers. It has 4% of the global iron reserves, 8% of the world’s zinc reserves and 4% of the world’s chrome reserves.

Kazakhstan’s oil and gas complex remains the powerhouse of our economy, which facilitates growth of other sectors. We have successfully created a modern and efficient oil, gas and mining sector. The share of the oil and gas sector within the country’s GDP has been growing at a steady rate, increasing from 3.7% in 1997 to 14.7% in 2006 and up to 25.8% in 2011. We’ve diversified our export markets and secured our positions, thereby having reduced our dependence on any particular export direction. 
Kazakhstan has made good use of its rich natural resources such as oil, gas and uranium. In the early 1990s, President Nazarbayev had the foresight to create a fund, based on the Norwegian model, which preserved oil and gas revenues for our children and our grandchildren. This so-called “fund for future generations” has now accumulated over $47 billion and is the cornerstone to managing and preserving the country’s oil wealth.

Industry analysts believe that a planned increase in oil production and the development of new oil fields will enable Kazakhstan to produce as much as 3 million barrels (477,000 tons) per day by 2015, lifting the country into the ranks of the world's top 5 oil-producing nations. Major oil and gas fields and their recoverable oil reserves are Tengiz with 7 billion barrels (1.1 bln. tons); Karachaganak with 8 billion barrels and 1.35 trillion m³ of natural gas; and Kashagan with 7 to 9 billion barrels (936 mln. to 1.2 bln. tons).

In order to ensure the further development of a competitive economy and industrial modernization, Kazakhstan adopted a five-year State Program for accelerated industrial innovative development and an industrialization map. During the past two years of implementing the course, Kazakhstan has built approximately 400 new factories. 60 new enterprises are up and running at full capacity, and have already produced goods worth $2 bln.

Today new large-scale projects in the sphere of high processing of our natural resources are taking place. 
1) The Government has began the construction of the first module of the Balkhash Thermal Station with the power of 1320 MW and worth 2.3 billion USD, in order to solve the problem of energy shortages and energy dependency of the southern regions. The thriving southern region has a shortage of electricity. One of the largest energy project in Kazakhstan is also the construction of the Moinak hydro-electric power station. The cost of the project with the capacity of 300 megawatt is $364 million. The capacity of Bestyubinsk water reservoir is enough to store up to 300 million cubic meters of water. Two powerful hydro-turbines produce 300 megawatt of electric power. 
2) The Kazakhstan’s section of the international motor road corridor "Western Europe – Western China", which will pass through our Southern regions and will then go to Russia via Aktobe, will be completed by 2015. The construction of two new rail lines – Zhezkazgan-Beyneu (1,200 km) and Arkalyk-Shubarkol (200 km) will begin in Central Kazakhstan. These projects will provide infrastructure in the developing regions of the country and will make Kazakhstan a transit state. 
3) Kazakhstan plans to establish the complex of deep refining at the Atyrau Refinery priced at 1.7 billion USD, which will increase production of petrol almost 3 times – up to 1.7 million tons, and diesel fuel - up to 1.4 million tons, and provide these fuels to Kazakhstan. 
4) Kazakhstan's first integrated gas and chemical complex worth $6.3 billion, which is under construction about 30 km away from Atyrau, will be commissioned in 2015. The complex is designed to produce annually 800,000 tons of polyethylene and 500,000 tons of propylene. 
5) The Government plans to begin construction of a gas processing plant with the capacity of 5 billion cubic metres a year on the Karachaganak field. 
6) Kazakhstan plans to launch a pipeline system that will provide gas supply in the central region of the country, including its capital.

The demand in the world for quality uranium fuels increases year by year. Forty new power generating units are being constructed in fifteen countries of the world. Kazakhstan has been an important source of uranium for more than fifty years. In 2011, the country maintained its position of the world's leading uranium producer, with almost 35% of world production. Kazakhstan has the second largest uranium reserves. Total resources and reserves of uranium are over 1.5 million tonnes, over 1.1 million tonnes of which can be mined by the in-site leaching method. Some 50 uranium deposits are known, in six uranium provinces. Between 2001 – 2011, uranium production in Kazakhstan rose from 2000 to 19,450 tonnes per year, and further mine development is underway with a view to reaching a production rate of 30,000 tonnes/year by 2018. State owned National Atomic Company Kazatomprom is the sole organization for uranium mining, reprocessing, export & import operations in Kazakhstan.

Kazakhstan has launched a new strategy 'Kazakhstan 2050' to define our country’s long-term development in the 21st century. Within the strategy, main directions of development of extractive industry have been laid out: 
• To ensure that regions of Kazakhstan are interested in attracting investments, the moratorium on subsurface use permits will be abolished. 
• Kazakhstan will move from simple delivery of commodities to establishing partnerships in area of energy resource processing and exchange of new technologies. By 2025 our country should fully satisfy our internal market with fuels and lubricants in accordance with new ecological standards. 
• Kazakhstan will attract investors only on the conditions of transfer of modern technology for extraction and processing. Investors will be allowed to extract and use raw materials only in exchange for creating new production facilities on the territory of our country. 
• Kazakhstan is set to become the regional magnet for investment by becoming an attractive place for investments and technology transfer. 
• All extracting enterprises must introduce only eco-friendly production techniques

Having abundant natural energy resources, the Government and the country’s energy sector keep an attentive eye on global energy trends. Optimal energy mix, efficient energy use, significant environment component of energy policy, research and development of renewables are all on the country’s energy policy agenda.

In the 20 years since the diplomatic relations between two countries have been established, the United States of America and the Republic of Kazakhstan have worked closely together to achieve our shared energy, nuclear security and nonproliferation goals. In 2001, Kazakhstan and the United States established the U.S.-Kazakhstan Energy Partnership. 9th meeting of the Kazakh-U.S. Energy Partnership Commission was held in Washington, D.C., on Oct 15-16, 2012. 
It was co-chaired by Kazakhstan's Minister of Oil and Gas Sauat Mynbayev and the U.S. Deputy Secretary of Energy Daniel Poneman. The Joint Statement and the 2012-2013 Joint Energy Partnership Action Plan were adopted. Two countries reviewed the current energy cooperation and discussed prospects for partnerships in the nuclear industry and on non-proliferation issues. Other topics included hydrocarbons, electrical power, alternative energy and energy saving techniques. The next, 10th meeting of the Commission will be held in Astana in 2013.

¹  “Electroenergetika v Kazakhstane”, Bourabai Research Institution, accessed march 12, 2013, http://bourabai.kz/toe/kazenergy.htm

²   “Kazakhstan country profile”, European Bank for Reconstruction and Development, accessed march 12, 2013, http://www.ebrd.com/downloads/legal/irc/countries/kazakhstan.pdf.

³  “Astana introduced differential power tariff”, National news agency "Kazinform", accessed march 12, 2013, http://www.zakon.kz/179107-v-astane-vvodjat-differencirovannyjj.html.

⁴  Supra №2.

⁵  Supra №2.

⁶  “Legal information system of normative legal acts of the Republic of Kazakhstan”, Ministry of Justice, accessed march 12, 2013, http://adilet.zan.kz/rus.