Key events in 2019

January

“Bogatyr Komir” LLP concluded first energy service agreement in “Samruk-Energy” JSC group of companies

Annual savings of 7,7 mln. kWh. or circa 207,8 mln. tenge at “Bogatyr Komir” LLP coal mines is the expected economic effect of the energy service agreement signed between “Bogatyr Komir” LLP and Kazakhstani company “PROLUX LED” LLP. It is planned to replace more than 1,5 thousand of available industrial lamps with LED ones.

February

“AZhC” JSC completed the project of transferring loads from 220/110/10 kV “Gorny Gigant” substation to the upgraded 220/110/10 kv “Ermensay” substation

The implementation of the project allowed not only preventing possible accidents and increasing the reliability of power supply in the southern capital, but also removing restrictions on connecting new consumers, including residents of “Samal”, “Kazakhfilm”, “Baganashil”, “Taugul” and other micro districts, and increasing the volume of electricity transmission. About 40 km of cable lines were set up and put under voltage from “Ermensay” substation; two overhead lines more than 11 km long were rehabilitated; high-voltage equipment for receiving, distribution and transmission of electricity were upgraded and expanded; energy metering systems, automatic emergency response and relay protection devices were installed additionally.

“Samruk-Energy” JSC Rating

Fitch Ratings international rating agency affirmed the ratings of “Samruk- Energy” JSC at “BB”; the outlook is “Stable”.

March

“Category procurement management” Transformation Program project was completed

The project was transferred to the operational management of the Company. The procurement category management process involves streamlining of procurement activities. 10 procurement category strategies have been developed within this project. Actual economic effect amounted to 2.5 bln. tenge.

April

“Shardarinsk HPP” JSC launched a second hydraulic unit as part of a fundamental retrofit of the plant

Technological equipment was successfully tested and the main construction and installation works were carried out at the hydropower plant. Equipment of the plant has been in operation for more than 50 years and is almost 100 % worn out by the start of the modernization project. The reconstruction will increase the capacity of hydropower plant by 26 percent – from the current 100 to 126 MW and service life of hydropower plant by 35–40 years. Additionally, 57 mln. kWh./ year will be produced annually, which is currently important for providing power hungry Turkestan region with electricity.

May

The first mining excavator “EKG-20” in Kazakhstan

The first mining excavator EKG- 20 in Kazakhstan was solemnly launched into operation at the Bogatyr open pit mine. The Bogatyr Komir Company purchased the most powerful mountain machine in its category at Uralmashzavod as part of the program for renewal of mining equipment fleet. With setting the excavator of this class in operation, the production capacity of the enterprise will increase significantly.

June

Electricity purchase and sale agreement was signed with “National Electric Networks of Uzbekistan” JSC

To increase the volume of electricity sales and use of export potential, the work on “Samruk-Energy” JSC entry in the Central Asian electricity market was carried out. As a result, “Ekibastuz State District Power Plant-1” LLP and “National Electric Networks of Uzbekistan” JSC signed an electricity purchase and sale agreement, which involves the export of 1, 01 bln.kWh electricity from June to December 2019.

Refinancing external obligations

Foreign currency liabilities of “Moynak HPP” JSC from China Development Bank in the amount of 136 mln. USD were successfully refinanced. As part of this transaction, the guarantee of “Samruk-Kazyna” JSC in the amount of $ 50 million was released, the level of foreign currency liabilities in the loan portfolio was reduced from 17 % to 3 %.

July

“Samruk-Energy” JSC completed the Transformation project on the development of sales processes and the introduction of trading processes

The implemented target model of the sales unit provides for centralization of sales function at the Head Office level based on the “single- window” principle for all customers. Thus, the Trade House of “Samruk-Energy” JSC sells the electricity generated by the group of companies, at the central auction of the “KEPMO” JSC platform as well. Financial benefits achieved for the period 2018–2019 is more than 5 bln. tenge.

Transformation Program project for the introduction of the new IT management model was completed

The project is designed to improve the quality and efficiency of IT services, create a centralized, transparent and efficient IT management model, as well as introduce an integrated approach to creating IT strategies and build a unified architecture of the IT infrastructure of the Company and 10 subsidiaries included in the Project scope. “IT services management” information system was developed, IT Shared Services Center was established on the basis of “Energy Solutions Center” LLP.

September

New solar power plant was built in Almaty region

The construction of a 0,4 MW solar power plant in Almaty region was completed. The plant is connected to “Alatau Zharyk Company” JSC power grids. “Samruk-Green Energy” LLP, a company within “Samruk- Energy” JSC, implemented the project. The project was implemented based on the infrastructure of the existing 2 MW solar power plant in Kapshagai city. The photovoltaic modules of Kazakhstani company “Astana Solar” LLP were used during the construction of the new plant in order to support the domestic commodity producer.

November

Centralized bidding

A centralized trading of electric capacity for 2020 was held on the platform of “Kazakhstan Electricity and Power Market Operator” JSC. Following the bidding, “Samruk-Energy” JSC sold 2909,63 MW of capacity (also MHPP – 298 MW , SharHPP – 61 MW, APP – 402 MW , a total of 3,670 MW ).

December

3rd unit launch operations have commenced at Shardarinsk HPP

A large-scale project associated with complete retrofit of hydropower plant on the Syrdarya river is nearing its completion. Fundamental reconstruction will allow increasing the capacity of hydropower plant from current 100 to 126 MW . Replacing the old hydro turbines of the Kharkiv plant with new ones, which were produced by the Austrian-German company Andritz Hydro Gmbh, will increase the plant’s output from 480 to 537 mln. kWh.per annum. Owing to the commissioning of the first two hydraulic units with a capacity of 31,5 MW each in the first half of 2019, Shardarinsk HPP hit the annual generation plan ahead of schedule.

Ekibastuz SDPP-2 was passed into the control of Kazakhstan

The deal on the acquisition of a 50 % stake in “Ekibastuz GRES-2 Plant” JSC from “Inter RAO”, a Russian company, was successfully completed. Shares were credited in favor of “Samruk- Kazyna” JSC on 13.12.2019. The asset completely passed into the control of the Republic of Kazakhstan.

“AZhC” JSC implemented the project of reconstruction of six regional control centers for the first time in Kazakhstan

The project significantly increases the efficiency of grid management, now it is possible to quickly respond to progressing of emergency situations in power distribution zones (PDZ). The video wall is controlled from an operator’s workstation in the SCADA system and allows monitoring all the technological processes of a district’s energy facilities in real time mode. All data about condition of the switching equipment of PDZ in real time are transmitted to the Central Control Center of the city’s distribution networks.