“Environment” category

Historically the world produced electricity and heat by using fossil fuels. Chemical reactions that occur when firing coal, gas and fuel oil lead to the natural formation of a number of substances, which in the absence of appropriate control can lead to the loss of the required quality of the environment. For such control, there is a system of state regulation in Kazakhstan in the form of environmental and natural resource law.

Therefore, the RK Environmental Code classifies primary production activities of Samruk-Energy subsidiaries as special nature management, and these activities are regulated by the relevant requirements and standards. Thus, each subsidiary and affiliate of “Samruk-Energy” JSC is responsible for its environmental footprint within the obtained environmental permit and other conditions of special nature management.

The RK environmental legislation encourages nature users to reduce their impact on the environment using economic incentive mechanisms. Along with that, “Samruk- Energy” JSC, being an environmentally responsible company, is not limited only by domestic law, but also strives to come closer to more ambitious international standards. Guided by the principles of sustainable development and best international practices, the Company set itself the environmental policy, goals and objectives, which are taken into account in the Company’s Development Strategy.

ISO 14001 “Environmental management” has been introduced at all companies of “Samruk-Energy” JSC that are engaged in operating activities.

As part of EMS, all SA identify significant environmental aspects, assess and manage environmental risks and opportunities, distribute roles and responsibilities, set goals to reduce the negative impact on the environment, develop emergency response plans, etc.

As measures that prevent damage to environment, a continuous environmental assessment of the effectiveness of production processes is conducted through industrial environmental monitoring. The monitoring is based on measuring and calculating the rate of emissions into the environment, harmful production factors. Industrial environmental monitoring is carried out with the involvement of independent laboratories accredited in the manner established by the RK legislation in the field of technical regulation. Atmospheric air, surface and underground waters, soils are the subjects of industrial monitoring.

In addition, preventive measures include mandatory environmental insurance and liquidation funds.

Particular attention is paid to the new technologies: RES development, oil fuel-free start-up and other energy-efficient technologies that are offered by specialists in the framework of regular environmental and energy audits. Given that national experts predict that coal will continue to play the role of the most reliable strategic type of fuel for the development of power industry in Kazakhstan in the foreseeable future, we support the development of coal chemistry and comprehensive deep processing of coal. To this end, the Company established “Clean Coal Technologies” research laboratory together with Nazarbayev University AEO.

The implementation of a comprehensive environmental protection program in 2019 resulted in the following achievements:

— lack of emergency spills and other types of emissions;

— the share of renewable energy and hydropower generation – 9.5 % of the total output of “Samruk-Energy” JSC group of companies – In 2019, two hydroelectric units of “Shardarinsk HPP” JSC were commissioned as part of a project on the plant retrofit, a 416 kW solar power plant of “Samruk Green Energy” LLP was commissioned in Kapshagai city- this will lead to an increase in the share of “clean” generation.

— reduction of unit emissions of СО2 emissions across Samruk-Energy group of companies by 1 % in comparison with 2018 is due to the decrease of fuel power plants’ share of generation and an increase in HPP generation share.

— reduction of unit dust emissions (fly ash) by 2 %, unit emissions of NOx by 3 %;

— a 6 % decrease in the unit indicator of ash and slag waste generation compared to 2018 due to the decrease of coal output and an improvement of the UCSF.

Environmental Compliance

In order to prevent environmental damage, the legislation provides for environmental audits, fines for violating legal requirements may be imposed according to the results of these audits.

In 2019, the authorized body conducted an unscheduled inspection of compliance with environmental laws at CHP- 3 of “APP” JSC. At the end of the audit, a fine was issued for exceeding the emission standards of pollutants (g/s) for СО, NOx and SO2.

In addition, in relation to “Ekibastuz SDPP- 2 Plant” JSC, the authorized body conducted a preventive monitoring of compliance with environmental requirements with a visit to the monitored entity. According to the results of the analytical control of pollutant emission sources, a maximum of 70–20 % of inorganic dust emissions (coal dust) was recorded at CHP, and facts of operation of vehicle, the pollutant content of which exceeds the established standards, were revealed.

The monetary value of significant fines and the total number of non-financial sanctions
for non-compliance with environmental laws and regulations

All fines were paid in a timely manner. Corrective measures were taken. In accordance with Article 81 of the Environmental Code of the Republic of Kazakhstan, the reasons for an obligatory environmental audit of individuals and legal entities are:

1) significant damage to the environment caused by business or any other activity of individuals and legal entities, documented;

2) reorganization of the legal entity-subsoil user, carrying out environmentally hazardous types of business or other activities, in the form of merger, separation;

3) bankruptcy of legal entities-subsoil users engaged in environmentally hazardous types of business and other activities.

An obligatory environmental audit was not conducted at Samruk-Energy Group’s entities in 2019 because abovementioned legal grounds were not available.

In 2019, individuals and legal entities filed 7 complaints related to environmental protection, 6 of which were received by “APP” JSC. All cases were reviewed and worked out in accordance with the internal grievance mechanism.

Total environmental expenditures and investments, broken down by types

In accordance with the current legislation of the Republic of Kazakhstan, each subsidiary of “Samruk-Energy” JSC of I-III category has an environmental protection plan approved by authorized body, the implementation of which is an obligatory condition for special nature management.

Aspect “Water and waste water”

Today the world is experiencing a crisis related to the lack of clean water; experts predict the worsening of the problem without due attitude. So, the United Nations declared 2018– 2028 decade as an international decade dedicated to the role of water in sustainable development.

In the production activities of “Samruk-Energy” JSC group of companies, this renewable natural resource is used as a force that allows spinning the generator rotor to generate electricity at hydropower and thermal power plants, and also as a coolant when transferring heat to CHP and boiler houses. In addition, water is used to feed reservoirs, to irrigate ash beaches, to maintain the water level in ash dumps, and for public living needs. Considering that “Samruk-Energy” JSC’s portfolio also includes hydropower and thermal power plants, we subdivide our interaction with water into water use and water consumption, respectively. At this, 98.5 % of the volume of water withdrawn is classified as water use at hydropower plants, and 2 % – as water consumption.

Water used and consumed in compliance with the current legislation of the Republic of Kazakhstan, which is aimed at maintaining and improving the sanitary-epidemiological and environmental situations in the zones of water bodies: subsidiaries of “Samruk-Energy” JSC carry out water withdrawal in volumes determined by production needs in accordance with the developed projects and regulations that are agreed with authorized state agencies and specified in special permits.

Thus, the main sources of water for technological needs are: the Sharyn River and Bestyubinsk Reservoir (Moynak Hydropower Plant), the Syrdarya river and Shardara reservoir (Shardarinsk hydropower plant), channel named after K. Satpayev (“Ekibastuz SDPP named after Bulat Nurzhanov” LLP, “Ekibastuz SDPP-2 Plant” JSC), Shidertinsky channel (“Ekibastuz SDPP-2 Plant” JSC), Big Almaty Lake and the basin of Big Almaty Lake (Cascade of HPP), Kapshagai Reservoir (Kapshagai HPP).

Reverse water supply systems with a bulk reservoir-cooler and once-through hydraulic ash removal systems are used for saving natural resources at Ekibastuz stations; In addition to recirculating water supply systems, Almaty power plants reuse wastewater from ash dumps owing to the unique ash and slag waste disposal technology.

Wastewater of production enterprises of “Samruk-Energy” JSC group of companies consists of industrial and domestic wastewater. The main volume of wastewater is industrial wastes; they are not discharged into natural objects. They are used as hydrotransport to remove ash and slag waste to ash dumps.

The quality and volume of wastewater is regulated by law, and before discharge, the wastewater undergoes appropriate treatment to approved sanitary standards. At the same time, analytical monitoring of surface water environments, monitoring of wastewater, monitoring of processes of changing water and temperature regimes of groundwater through a network of observation wells, repair of equipment and pipelines of HAH system are carried out on a regular basis.

“Samruk-Energy” JSC main objective regarding water resources protection is to minimize the impact, including:

— decrease in fresh water consumption;

— reduction of wastewater discharges and concentrations of harmful substances in wastewater;

— increase in the share of reused water (water circulation).

Water interaction