“Samruk-Energy” JSC in electricity production sector

The volume of electricity production by energy-producing organizations of “Samruk-Energy” JSC in 2019 amounted to 30.2 bln. kWh.

The share of electricity generation by power plants of “Samruk-Energy” JSC amounted to 28,5 % of the total electricity production in the Unified Energy System of Kazakhstan.

Dynamics of electricity production by energy producing organizations of “Samruk-Energy” JSC, bln.kWh

The share of electricity production by “Samruk-Energy” JSC RE facilities in the RK

«Samruk-Energy» JSC share in total electricity production across the RK in 2019

Production KPI (broken down by producers)
SA name 2017 (actual) 2018 (actual) 2019 (actual) Deviation of 2019 against 2018 2020 (forecast) 2021 (forecast)
Electricity production volumes, mln. kWh1
“Almaty Power Plants” JSC 5 712,4 5 599,1 5 397,4 96% 5 340,8 5 342,0
“Ekibastuz SDPP-1” LLP 14 797,0 19 121,6 18 301,5 96% 18 825,8 19 297,0
“Ekibastuz SDPP-2 Plant” JSC 5 495,5 5 436,5 4 928,5 91% 4 626,4 5 503,7
“Shardarinsk HPP” JSC 359,4 348,7 464,8 133% 550,7 596,0
“Moynak HPP” JSC 1 226,5 1 036 951,5 92% 906,0 906,0
“Samruk-Green Energy” LLP 3,2 3,2 3,3 103% 3,8 22,8
“FWPP” LLP 166,4 157,9 153,3 97 % 160,5 172,2
EWP 107,5
“Energia Semirechya” LLP 63,9 255,5
Total 27 760,3 31 703,1 30 200,3 95% 30 477,9 32 202,0
Electricity sales volume, mln. kWh
“Almaty Power Plants” JSC 359,4 348,7 464,8 133% 550,7 596,0
“Ekibastuz SDPP-1” LLP 1 226,5 1 036 951,5 92% 906,0 906,0
including export 3,2 3,2 3,3 103% 3,8 22,8
“Ekibastuz SDPP-2 Plant” JSC 166,4 157,9 153,3 97% 160,5 172,2
“Shardarinsk HPP” JSC 5 712,4 5 599,1 5 397,4 96% 5 340,8 5 342,0
“Moynak HPP” JSC 14 797,0 19 121,6 18 301,5 96% 18 825,8 19 297,0
“Samruk-Green Energy” LLP 5 495,5 5 436,5 4 928,5 91% 4 626,4 5 503,7
“FWPP” LLP 359,4 348,7 464,8 133% 550,7 596,0
EWP 1 226,5 1 036 951,5 92% 906,0 906,0
Total 26 862,2 29 932,2 28 632,1 96% 28 736,6 30 278,7
Capacity sales volume, MW
“Almaty Power Plants” JSC 817,4 818,0 818,0
“Ekibastuz SDPP-1” LLP 501,9 1 562,0 1 827,0
“Ekibastuz SDPP-2 Plant” JSC 846,8 779,0 625.0
“Shardarinsk HPP” JSC 41,6 61,0 61,0
“Moynak HPP” JSC 280,9 298,0 298,0
Total 2 488,6 3 518,0 3 629,0
Electricity transmission volumes, mln. kWh2
“Alatau Zharyk Company” JSC 6 527,9 6 795,9 6 961,3 102% 7 008,0 7 113,0
Total 6 527,9 6 795,9 6 961,3 102% 7 008,0 7 113,0
Electricity sales volumes, mln. kWh3
“AlmatyEnergoSbyt” LLP 5 767,5 5 904,3 6 218,2 105% 5 912,0 5 918
Total 5 767,5 5 904,3 6 218,2 105% 5 912,0 5 918
Heat production volumes, thous. Gcal1
“Almaty Power Plants” JSC 5 223,3 5 616,8 5 024,5 89% 5 025,2 5 207,4
“Ekibastuz SDPP-2 Plant” JSC 66,5 78,6 82,8 105% 76,0 76,0
“Ekibastuz SDPP-1” LLP 8,2 59,9 132,3 221% 286,4 286,4
Total 5 298,0 5 755,3 5 239,6 91% 5 387,6 5 569,8
Coal sales volumes, mln. tons 40,9 45,2 44,7 99% 41,7 46,4

Note:

1 for comparability purposes, the volumes of electricity and heat production in 2017 do not include “Aktobe CHP” JSC sold in 2017.

2 for comparability purposes, the volumes of electricity transmission in 2017 do not include “EK REC” JSC and “MDPGC” JSC sold in 2017.

3 for comparability purposes, the volumes of electricity sales in 2017 do not include “SHET” LLP sold in 2017.

Electricity production volumes (mln.kWh) at TPP, CHP

Electricity production in 2019 amounted to 30,200.3 mln. kWh (a decrease in comparison with 2018 by 1,502.8 mln. kWh or 5 %).

The main decrease in volumes occurred because of the reduction of “Ekaibastuz SDPP-1” LLP output by 820 mln. kWh.

The decrease in HPP generation volumes by 33 mln. kWh resulted in the reduction of water inflow at “Moynak HPP” JSC, Kapchagayskaya HPP; at this, the growth at “Shardarinsk HPP” JSC is connected with the commissioning of hydraulic units No. 1,2.

FWPP electricity sales fell by 4.6 mln. kWh because of the decrease in the average wind speed.

Electricity production volumes (mln. kWh) at HPP, WPP, SPP

Forecast for future period:

Electricity production volumes in the forecast for 2020 are expected to increase gradually in relation to the 2019 actual.

An increase in electricity production in 2021 by 1,724.1 mln. kWh is forecasted mainly due to the growth in electricity generation by “Ekibastuz SDPP-1” LLP and “Ekibastuz SDPP-2” JSC.

The share of electricity production by energy producing organizations of “Samruk-Energy” JSC that use RES amounted to 1.1 % of the volume of electricity of “Samruk- Energy” JSC and 14.3 % of the total RE in the Republic of Kazakhstan (the volume of “Samruk-Energy” JSC RE output amounted to 342.5 mln. kWh).

The decrease in the share of electricity generation of “Samruk- Energy” JSC RE is associated with the commissioning of new renewable energy facilities in Kazakhstan.

Heat production volumesin 2019 amounted to 5,239.6 thous. Gcal, there is the decrease compared to the 2018 level by 515.8 thous. Gcal or 9 %, mainly because of the decline in “Almaty Power Plants” JSC heat output by 592 thous. Gcal or 11 %.

Δ 2019/2018
Description 2017 2018 2019 Share in the RK, % mln. kWh %
Electricity production by “Samruk- Energy” JSC RE facilities 367,7 355,4 347,5 14,5% - 7,9 –2,2%
Cascade of small HPP of “APP” JSC 198,0 194,4 190,9 8,0 % –3,5 –1,8 %
“Samruk-Green Energy” LLP 3,1 3,1 3,3 0,1 % 0,2 6,5 %
“First Wind Power Plant” LLP 166,4 157,9 153,3 6,4 % 4,6 2,9 %

Dynamics of changes in heat production volumes, thous.Gcal

Electricity transmission volumes (mln. kWh) and grid losses (in%)

The total volume of electricity sales for the reporting period amounted to 6,218 mln. kWh, which is 314 mln.kWh higher than 2018 or 5 % compared to 2018 because of the growth of consumers number at “AlmatyEnergoSbyt” LLP.

Grid losses at the end of 2019 decrease compared to the same period in 2018. In general, the level of losses of “Alatau Zharyk Company” JSC is lower than the standard, which was established by CRNM and PC.

Electricity transmission and distribution volumes are expected to increase by 1 % in 2020 in comparison with the 2019 actual.

Forecast for the future period:

Heat production volumes in the plan for 2020 are forecasted to increase by 2.8 % compared to the 2019 actual, mainly because of the growth in heat output of “Ekibastuz SDPP-1” LLP.

Electricity transmission volumes amounted to 6,961 mln. kWh, there is an increase compared to the 2018 level by 165 mln. kWh increase. “Alatau Zharyk Company” JSC electricity transmission volumes increases owing to the growth in consumption of the Almaty region due to higher temperatures in the summer in 2019.

Grid losses at the end of 2019 decrease compared to the same period in 2018. In general, the level of losses of “Alatau Zharyk Company” JSC is lower than the standard, which was established by CRNM and PC.

Name 2018 actual 2019 actual Deviat. %
“AlmatyEnergoSbyt” LLP
Number of consumers, incl.: 817 025 844 234 27 209 103%
Population 785 393 811 295 25 902 103%
Corporate entities 31 632 32 939 1 307 104%
Sales volume, mln. kWh 5 904 6 218 314 105%

Forecast for the future period:

The volume of electricity sales in the forecast for 2020 reduces by 5 % from the level of the 2019 actual. In the forecast for 2021, the volume of electricity sales is increased by 0.1 % compared with the forecast for 2020.

“Samruk-Energy” JSC participation in the capacity market

“Samruk-Energy” JSC power plants took part in the simulated trades of electric capacity held on the trading platform of “Kazakhstan Electricity and Power Market Operator” JSC (KEPMO) during 2019.

According to the results of centralized auction of capacity, which took place on November 28, 2019, the power plants of the Company sold 2,148.7 MW at a price of 590 thous. tenge / MW* month. According to the RK Law “On making changes and additions to certain legislative instruments of the RK regarding special economic and industrial zones, attracting investments, export development and promotion, as well as social security”, “Moynak HPP” JSC and “APP” JSC received individual tariffs for capacity.

The capacity volume was 61 MW for “Shardarinsk HPP” JSC and 298 MW for “Moynak HPP” JSC. Individual tariffs for capacity will ensure the return of borrowed funds used for the already constructed power plant (“MHPP” JSC), as well as refinancing of earlier received target loan for investment programs (“APP” JSC).

The project of the Transformation Program “Development of sales processes and introduction of trading processes” was completed in 2019. The introduction of the new model as part of the project resulted in the establishment of a sales department and a commercial dispatching department on the basis of the Trade House. This enabled to centralize trading activities of four subsidiaries of “Samruk-Energy” JSC.

According to the new operating model, regimes and daily schedules, export deliveries, interaction with KEGOC, KEPMO and other structures are managed at the Holding company level. Centralization of management will allow for optimal loading of power generating companies. “Samruk-Energy” JSC successfully makes every effort to increase sales of electricity from power plants that belong to the group of companies.

“Samruk-Energy” JSC trade house directly communicates with power market entities of Kazakhstan and neighboring countries, as well as conducts commercial dispatch by generating daily schedules of “Samruk-Energy” JSC group of companies, effectively distributing the declared volumes based on the feasibility of loads of subsidiary and affiliated power plants. According to the 2019 results, 28.6 bln. kWh electricity was sold to consumers of “Samruk-Energy” JSC. At this, the volume of electricity sales to the domestic market increased by 1.5 bln. kWh or 105.7 % compared to last year. “Samruk-Energy” JSC successfully completed activities on entry into power market of Central Asia in order to boost electricity sales and use export potential. According to the results of the year, 966.5 mln. kWh was exported to Uzbekistan.

Coal market

According to the BP Statistical Review of World Energy, as of 2017, Kazakhstan ranks eighth in the world in terms of proven coal reserves – 25.6 bln. tons or 2.5 % of the world total. According to the Statistics Committee of the RK MNE, the country’s coal production amounted to 111 mln. tons of coal in 2019 (excluding coal concentrate) or 98 % against the same indicator in 2018 (113.7 mln. tons of coal). Power generating coal market in Kazakhstan is relatively fragmented – the major players are “Bogatyr Komir” LLP (“Samruk-Energy” JSC and “RUSAL” UC), “EEC” JSC (ERG), “Shubarkol Komir” JSC (ERG), “Kazakhmys Corporation” LLP, “Karazhyra” JSC, “Angrensor Energy” LLP.

No. Region 2017 2018 2019 Δ, %
1 Pavlodar 62 467,9 70 325,2 68 364 97
2 Karaganda 35 909 34 987,3 34 217,1 98
3 East-Kazakhstan 6 867 8 290 8 157,7 98
4 Other 721 100,9 343,5 340
Total across RK 105 964,9 113 703,4 111 083,2 98

General scheme of coal sales

Power systems of Nur-Sultan, Almaty, Karaganda, Petropavlovsk, Pavlodar, Stepnogorsk cities and Ekibastuz SDPP-1, SDPP-2 are among the major consumers of “Bogatyr Komir” LLP in Kazakhstan. To receive coal, the power plants of the Republic of Kazakhstan arrange the transportation of coal from Ekibastuz station (Bogatyr Komir, LLP) to the destination station.

Following the results of transactions on the stock exchange, municipal coal is shipped in two ways: by railway and motor transport. Boiler houses in rural areas are the consumers; Ekibastuz coal is a fuel specified on their nameplates. According to the 2019 results, the Company’s share amounted to 40.4 % of the total coal mined in Kazakhstan and 64 % of the volume of coal mined in the Ekibastuz coal basin.

Coal mining

According to the 2019 results, “Bogatyr Komir” LLP produced 44,848 thous. tons of coal, which is 0.04 % less than in 2018 (44,865 thous. tons). Coal sales in 2019 are 1 % lower than coal sales volume of 2018.

In total, 44,685 thous. tons were sold, including:

— 33,792 thous.tons to the domestic market of the RK, which is 5 % less than in the corresponding period of 2018 (35,572 thous. tons);

— for export (RF) – 10,893 mln. tons, which is 13.6 % more than for the corresponding period of 2018 (9,587 thous. tons).

Bogatyr Komir Coal sales, ( thous. tons)

Coal export sales grew by 1,306 thous. tons, or by 14 % because of an increase in demand from Reftinsk GRES.

Export

Domestic market

Coal sales broken down by consumers
No. Region Volume of sales, thous.tons Δ, % 2019/2018
2017 2018 2019
1 “APP” JSC 3 256 3 299 3 338 101,2%
2 “Karaganda Energocenter” LLP 3 301 3 521 3 417 97,0%
3 “Astana –Energia” JSC 3 525 3 640 3 779 103,8%
4 “Pavlodarenergo” JSC PCHP-2,3 1 895 3 289 3 004 91,3%
5 “Stepnogorsk CHP” LLP 869 984 986 100,2%
6 “ESDPP-1” LLP 8 850 11 559 10 937 94,6%
7 “ESDPP-2 Plant” JSC 3 456 3 285 3 203 97,5%
8 “Bassel Group LLS» LLP 544 605 622 103,0%
9 “SevKazEnergo” JSC 2 806 2 672 2 949 110,4%
10 “Ekibastuzteploenergo” LLP 0 513 499 97,3%
11 MUS based on the REM “Kokshetau Zhylu” 295 323 281 81,1%
12 Household 1 399 1 519 775 51,0%
Total for the domestic market of the RK 30 701 35 572 33 792 95%
12 Reftinsk GRES 9 936 9 564 10 893 113,9%
Total for export to the RF 10 157 9 587 10 893 113,9%

The decrease in coal sales in the domestic market amounted to 1,779 thous. tons (5 %), which resulted from the decrease in the demand of “Ekibastuz SDPP-1” LLP, “Pavlodarenergo” JSC and “Topar SDPP” LLP.

Forecast for the future period: In the forecast for 2020, the volume of coal sales will decrease by 2.9 mln. tons, or 6.7 % compared to the 2019 actual in connection with active implementation of the project for the construction of facilities for cyclical-and-continuous method of coal mining at the “Bogatyr” open-pit mine.

The project’s goal is the transition from railway technology for coal shipment to the auto-conveyor, which will allow:

— increasing the capacity of the Bogatyr coal mine from 32 mln. to 40 mln. tons per year, which in turn will increase “Bogatyr Komir” LLP total capacity to 50 mln. tons per year (the “Bogatyr” mine 40 mln. + “Severny” 10 mln. tons);

— improving workforce productivity by 25 %;

— reducing the production cost of coal mining by 12 %;

— reducing the average wagon turnover time from 14,3 to 5,4 hours.

In the forecast for 2021, coal sales increases by 11 % or 4.7 mln. tons by 2020.