Message of Chairman of the Company

Dear readers!
In a whole, Year 2013 was successful for the company. Support of the Government and Shareholder, which is Samruk-Kazyna NWF, allows to effectively solving the tasks set by the state authorities.

There are 13 projects in current investment portfolio of the company; implementation of them will allow covering shortage in electric power and providing new opportunities for social and economic development of regions. 6 projects out of 13 are implemented within the framework of State Program of Forced Industrial-Innovative Development of RoK and Industrialization map.

The accomplished projects include – the commissioning of Moynak HPP with capacity 300 MW, reconstruction of the 8th electrical power unit at Ekibastuz SDPS-1 named after Bulat Nurzhanov LLP with capacity 500 MW. The operations on construction of Balkhash TPP project, the largest in the sector, are carried out. The project is executed jointly with the Korean Consortium Samsung C&T and KEPCO.

In accordance with the plans on development of green economy, the priority issue for the company is involvement of renewable energy sources, medium and small hydraulic power plants, wind farms and solar power plants into energy balance. In the course of call-in TV-bridge on December 20 the first industrial solar power plant constructed in Kapshagay, Almaty region was started-up. In future, it is planned to increase its capacity from 2 up to 100 MW. In 2014, the Company intends to commission Ereymentau WPP, which will become fundamental facility of energy supply for coming International Exhibition EXPO-2017. At the opening stage its capacity will be 45 MW and then will go up to 300 MW.

The next in turn is implementation of projects of Construction of WPP in Shelek corridor with the perspective of enlargement up to 300 MW, Construction of Kerbulak HPP, as well as small hydraulic power plants at the Shelek, Koksu Rivers and Big Almaty Channel with total set capacity of 300 MW.

The subsidiaries and associates of Samruk-Energy have implemented a number of projects that improve quality of services for consumers. Alatau Zharyk Company JSC with support of the Government and Almaty Akimat completed the construction of energy circle with voltage of 220 kV that many fold increases a reliability of energy supply for the metropolitan city. The start-up of constructed sub-station 220 kV Kensay (Besagash) with double-circuit OHL-220 has become the final stage in the largest-scale project in the history of Almaty electric power system. City circuit has connected master sub-stations 500 kV of KEGOC JSC and tie-stations 200 kV of AZK JSC that helped to strengthen circuit network with UES of Kazakhstan.

Within the framework of Almaty power center the projects on reconstruction and expansion of Almaty CHP-1 and CHP-2, cascade of HPP of AlPP JSC are carried out, it is planned to convert overhead PTL to the cable ones. Due to measures to increase energy, efficiency and implementation of metering systems, within 2 years there are no excessive losses in the networks of AZC JSC.

By efforts of Mangistau Distribution power grid company JSC and EK REC JSC, modification of networks and sub-stations in west and east regions has started.

Tangible result on environment protection has been reached by subsidiary enterprises of Samruk-Energy JSC – Ekibastuz SDPS-1 and SDPS-2, which are power hearts of the state. In period from 2009 to 2013 ash-handling systems have been reconstructed and electric precipitators at all 8 functional station units were installed. Leading clean-up systems reduce atmospheric emissions by several times, by a value around 150 thousand ton per year, what contributes to improvement of ecological situation in Pavlodar region.

Partnership with leading international financial institutions is developed. Through credit agreement concluded with EBRD on the amount 9.150 billion tenge the operations on Modernization of Shardarinsk HPP project are carried out.

The emphasis will be put on continued increase of effectiveness and minimization of environmental impact, such as – reduce of ash, sulfur oxide and nitrogen emissions. In addition, some thermal plants will be transferred to the production of power energy with carbon dioxide recovery and storing.

Last year Samruk-Energy announced about itself to Leaders of the world power economy, by taking part in the 22nd World Economic Congress WEC-2013 workshop, held in South Korean city Daegu. Memorandum on conducting of Summit of the world energy leaders in 2014 within the framework of Astana economic forum, signed by Kristof Fry, General Secretary of World Energy Council, has become the important result of the Congress.

Samruk-Energy JSC intends to reach optimal balance on fuel types for generation of power and in accordance with Conception on Kazakhstan’s transfer to the green economy it will diversify its power portfolio. Taking into consideration all these factors, the company’s strategy is targeted to innovative development of technology potential up to 2022.

In particular, it is provided for increasing of RES share, modernization of existing and construction of new generation capacities on the basis of clean coal technology.

For this purpose, Samruk-Energy JSC has entered into cooperation with National Energy Technology Laboratory under the United States Department of Energy that provides wide range of energy and ecology research programs. Last autumn, during the business trip of the NETL representatives, possibility of application of perspective solutions on burning of high ash coal of Ekibastuz fields has been considered.

Today, Kazakhstan energy economy has a unique opportunity to get access to leading and ecologically clean technologies. 

This is particularly important, taking into account that Samruk-Energy’s share makes about 40% of production of power-station coal sector on domestic market. It is expected that by 2022 the production volumes will increase from 41.7 million (2013) up to 58 million tons. Based on the newly acquired coalfields the company plans to develop coal chemistry that assumes coal gasification, production of synthetic liquid and gas fuel, humic preparations, etc.

Samruk-Energy sees the necessity to establish Kazakhstan Intellectual Power System — KIPS by 2030, which will allow providing reliable power supply for consumers with minimum expenses while production, transfer and distribution of energy, as well as ensure large-scale involvement of RES into power energy balance and maximal use of transit and export potential. In general, in order to fulfill the state policy in the Republic of Kazakhstan, it is planned to establish the National Operator in power production sphere on the basis of Samruk-Energy JSC.

The chosen direction, pursuant to which renewable energy sources are used along with traditional ones, is represented as the most pragmatic and reasonable form of the national fuel and energy complex in the future. From this point of view, Samruk-Energy JSC will promote sustainable development of power energy sector and building of efficient economy in order to successfully implement Kazakhstan-2050 Strategies: the new political course of successful state.