The implementation of two new renewable energy sources (RES) projects has commenced in Kazakhstan. This refers to the construction of wind power plants (WPPs) by companies of power holding company “Samruk-Energy” JSC in Almaty and Akmola regions. The project "Construction of a 60 MW wind power plant in Shelek corridor including the possible increase in capacity up to 300 MW" is implemented in the Enbekshikazakh district of Almaty region. The plant will consist of 24 wind-driven installations (WI) with a total capacity of 60 MW, a substation and power lines. Construction and installation works have begun at the facility’s production site. “Energia Semirechya” LLP, a company within the structure of “Samruk-Energy” JSC, manages the project. During the construction of the wind plant, it is planned to create 300 jobs, as well as 14 permanent jobs after the commissioning of the plant. The wind power plant is expected to generate 225,750 thous. kWh of electricity every year. According to the company's experts, the wind turbines can be used in conditions of a cold continental climate (–30 ... + 43 C), seismic activity of 10 points, and wind class II. Wind turbines have technical and environmental characteristics that meet international standards IEC 61400-series "Wind turbine generator systems". The second wind power plant is located in the vicinity of Ereymentau city, Akmola region. In accordance with the local wind potential, it is planned to install at the station site 11 WI with a unit capacity of 4.8 MW and a total installed capacity of 50 MW produced by German company ENO Energy GmbH. “Ereymentau Wind Power” LLP, “Samruk-Energy” holding’ company specializing in the production of electricity using renewable energy sources, is implementing the project. The project will allow employing 100 people with the involvement of local residents during the construction period. 16 people will service the plant in the course of its operation. Electricity, which will be produced at the new wind farm in Almaty and Akmola regions, will be supplied to the National Power Grid of Kazakhstan. According to experts, Kazakhstan has a huge potential for the use of renewable sources and, as noted, the transition to "green" energy, the introduction of "green" technologies is a growing direction of the global economy. For instance, according to “Samruk-Energy” experts, the main sources of electricity in Almaty region are Almaty CHPs, Kapshagai and Almaty Cascades of HPPs, Issyk HPP, Moynak HPP, and Karatal HPP. The region's need for electricity is covered by its own energy sources only by 50% because of the shortage of own generating facilities. The launch of another renewable energy facility in a region with a high potential of wind energy resources will partially fill this gap in electricity with minimal impact on the environment. It should be reminded that “Samruk-Energy” JSC RE facilities such as solar power plants (SPP), wind power plants, biogas plants (BGP), small hydropower plants produced 342,5 mln.kWh in 2019 or 14,3% of the total electricity generated from renewables in the Republic of Kazakhstan, and the company's share in the production of "clean" electricity (solar power plants, wind farms, small and large hydropower plants) in 2019 increased by 1,2% compared to 2018, which amounted to 2,924,2 mln. kWh. “Samruk-Energy” JSC- the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc. ______________________________________________ Government Relations and Communications Office of “Samruk-Energy” JSC. Tel: (7172) 55-30-62; This email address is being protected from spambots. You need JavaScript enabled to view it.
Renewal of Transformation projects portfolio represents a continuous process of improvement. The content is updated every year proceeding from the company’s needs.
An online meeting of the Extended Modernization Council (EMC) was held at “Samruk-Energy” JSC. The Directorate for Asset Management of “Energy” Sector, representatives of the Digitization Office of “Samruk-Kazyna” JSC Fund, Borankulova Lyazat, the Managing Director for Strategic Development, as well as Shashkenova Maral, Director of the Strategic Development Department, chief executive officers of subsidiaries and affiliates of the energy holding company, managing directors of the Head Office and supervisors of potential projects and activities participated in the meeting.
Bakitzhan Zhulamanov, the Chairman of the Executive Board of “Samruk-Energy” JSC, opened the meeting of the Modernization Council: “Much attention was directed to addressing production issues, using techniques for collecting ideas and proposals based on “bottom-up” that helped us to identify the growing needs of subsidiaries and affiliates of the group. As a result now we have a short list of initiatives”.
The preparatory work for updating the portfolio over six months comprised communications with all subsidiaries and affiliates, expanding channels for collecting ideas and propositions, studying the feasibility and economic efficiency of more than 60 potential projects and activities.
15 projects that survived an elimination process were submitted to the Modernization Council members. Discussions and voting resulted in consideration of the possibility of allocating a budget and other resources for further implementation of 10 business proposals of the updated Project Portfolio. The remaining five projects are planned to be implemented outside the Digital Transformation Program.
“Several projects contain advanced digital solutions and are aimed at enhancing production efficiency. The pandemic has also influenced the content of the Project Portfolio, which involved services automation, paperless circulation. The projects and activities that we offer for consideration are aimed at achieving strategic goals, increasing the company's value and reducing operating costs,” said Yedil Kopenov, Managing Director for Business Transformation at “Samruk-Energy” JSC during the meeting.
Yedil Kopenov encouraged chief executive officers of “Samruk-Energy” JSC subsidiaries to be actively involved in the implementation of projects, to consider allocating of resources for this and comply with project management methodology: “Please provide the options for the Portfolio management structure both at the HO and at SA level for consideration”
Chief executive officers of companies that are part of the energy holding company were assigned with controlling over the implementation of decisions of the Modernization Council and preparing budgets in accordance with developed financial and economic models. It is planned to obtain approval of the Project Portfolio from “Samruk-Energy” JSC Board of Directors in October.
The goal of Transformation Program project is 30% reduction of occupational injury rate figures.
The third wave of the project for the introduction of the new integrated safety management model of “Samruk-Energy” JSC Transformation Program includes “Almaty Power Plants” JSC (AlES), “Alatau Zharyk Company” JSC (AZhC) and a solar power plant of “Samruk Green Energy” LLP (SGE), which employs more than 6 thousand people. The new approaches aim to enhance safety culture and reduce occupational injury rate by preventing incidents.
The start of “the introduction of the new integrated safety management model” project’s implementation was announced at the kick-off online meeting with the participation of senior executives of the energy holding company and supervisors of “Samruk-Energy” JSC subsidiaries, who are responsible for workplace safety issues.
“I would like to highlight the significance of occupational health and safety issues. This project is under special control of Akhmetzhan Yesimov, the Chairman of the Executive Board of “Samruk-Kazyna” SWF JSC. The sponsor of the project at “Samruk-Energy” JSC is also the chief executive officer Chairman of the Executive Board Bakitzhan Zhulmanov”, - said Yedil Kopenov, the Project Co-sponsor, Managing Director for Business Transformation.
The project involves the introduction of new standards and practical tools that will enable power plant employees change attitudes towards compliance with safety rules, raise awareness and change outdated attitudes.
Practice has shown that risk prevention works allow avoiding accidents at work. Six accidents were reported across “Samruk-Energy” JSC group of companies over the first half of 2020, while seven sad events occurred at enterprises, one of which with fatal outcome during the same period of 2019. A transparent incidents reporting system has been introduced since 2019, as part of which potentially dangerous incidents that result in an injury are recorded and examined. The responsibility for concealing accidents has also been strengthened, and monetary incentives are provided for reporting potentially dangerous situations. 16 potentially dangerous incidents were reported and investigated during the first half of 2020. 23 incidents were reported over the same period of last year.
According to Tulegen Maxilov, the project manager, head of Health, Safety and Environmental Protection Department, occupational injury rates are planned to be reduced at enterprises by 30% during three years after the project’s implementation.
“It is essential that a high-quality analysis of possible risks is conducted at a production facility. The work should not involve a bureaucratic approach. The introduction of a transparent reporting system, a proactive approach to occupational safety issues are crucial tasks in the project implementation”, - Tulegen Maxilov told.
The first wave of the project for the introduction of the new integrated safety management model was completed in 2019 at the Head Office of “Samruk-Energy” JSC, “Ekibastuz SDPP-1” LLP, “Moynak HPP” JSC, “Shardarinsk HPP” JSC. The second stage of this project will be introduced at “First Wind Power Plant” LLP and “Ekibastuz SDPP-2 Plant” JSC by the end of 2020.
According to the data from System Operator, the Republic of Kazakhstan power plants produced 45 577,5 mln.kWh of electricity in January-May 2020, which is 3,3% more than the same period in 2019. There was an increase in production in all zones of the UES of Kazakhstan. This is mentioned in the Report with the analysis of the electricity and coal market of Kazakhstan for January - May 2020 posted on “Samruk-Energy” JSC website.
Over the five months of 2020, generation of electricity by combined generating facilities amounted to 22,5 bn. kWh, which is almost comparable to the same period in 2019 (22,8 bn. kWh). At the same time, in comparison with January-May 2019, the share of combined generation increased slightly, and amounted to 49,6% of the total electricity production in the Republic of Kazakhstan.
The volume of electricity production by energy-producing organizations of “Samruk-Energy” JSC for January-May 2020 amounted to 12 225,7 mln. kWh or an increase of 7% compared to the same period in 2019.
According to the System Operator, in January-May 2020, there was a 2% increase in the electricity consumption pattern in the republic compared with January-May 2019. So, in the northern zone of the republic, consumption increased by 2%, in the western by 5% and in the southern by 1%.
According to the Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan, in January-May 2020, 44 951, 9 thous. of bituminous coal were mined, which is 2% higher than the same period in 2019 (43 874,7 thous. tons).
In January-May 2020, “Bogatyr Komir LLP, a coal mining company that is managed on a parity basis by “Samruk-Energy” JSC and the “RusAl” Russian UC, produced 19 428 thous.tons, which is 6% more than in the corresponding period 2019 (18 328 thousand tons). 19 498 thous.of tons were sold during this period, including:
- 15 151 thousand tons to the domestic market of the Republic of Kazakhstan, which is 8,8% more than for the corresponding period of 2019 (13 923 thous. tons);
- for export (RF) - 4 346 mln. tons, which is 1,8% more than for the corresponding period of 2019 (4 271 thous. tons).
Electricity production by RE facilities (SPP, WPP, Biogas plants, small hydropower plants) of the RK for January-May 2020 amounted to 1 170,2 mln. kWh. The growth was 81,8%. in comparison with the 5 months of 2019 (643,5 mln.. kWh).
Over the five months of this year, the production of electricity by BGP and small hydropower plants has decreased compared to the same period in 2019, while the production of electricity by wind farm and solar power plants has increased.
The generation of electricity by renewable energy facilities of “Samruk-Energy” JSC (solar power plants, wind farms, small hydropower plants) in January-May 2020 amounted to 143,5 mln. kWh or 12,3% of the total volume of electricity generated by renewable energy facilities, which is compared to the same period 2019 is up 9,1% (in January-May 2019, the generation of renewable energy by Samruk-Energy holding company entities amounted to 131,5 mln.kWh, and the share of RES of energy holding company is 20,4%). The main decrease in the share of electricity production by renewable energy facilities of “Samruk-Energy" JSC is the commissioning of new renewable energy facilities in the Republic of Kazakhstan.
More detailed information about the Report on the Electricity and Coal Market of Kazakhstan for the period January - May 2020 is available on “Samruk-Energy” JSC website at the link: https://www.samruk-energy.kz/ru/press-center / analytical-review
For reference:
“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc.
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Government Relations and Communications Office of “Samruk-Energy” JSC.
Tel: (7172) 55-30-62;
Fitch Ratings affirmed Samruk-Energy's long-term foreign and local currency credit rating of “BB”, and also raised Samruk-Energy's solvency on an independent basis from “B” to “B +” and the rating for unsecured loans from “BB-” to "BB". The outlook is “Stable”.
Raising of creditworthiness on a stand-alone basis is connected with a stronger financial profile owing to improved credit indicators and reduction of Company's currency risks. Increasing of priority unsecured ratings of the Company is because of less structural subordination for unsecured lenders.
Affirmation of ratings resulted from considerable reduction of the Company’s currency fluctuations after refinancing of US dollar loan at the Moynak HPP in local currency at the holding company level, as well as converting the loan in US dollars into local currency. At the end of 2019, foreign currency debt amounted to only 2%, compared to 60% in 2016. Thus, as the Agency notes, the Group increased its financial flexibility and ability to stand against currency shocks.
The affirmed rating includes the Agency’s opinion that the Group will receive individual capacity tariffs for new power units of Shardarinsk HPP, Moynak HPP and Almaty Power Plants until 2024-2028.
Along with a boost in the Company's income, the Agency noted a substantial debt reduction and, as a result, improved financial performance. Furthermore, an increase in the share of international financial institutions in the structure of the loan portfolio of the Company from 30% to 42% was marked out, which shows the high quality of the debt portfolio and significantly influences the assessment of the financial performance of the Group. At the same time, the Company plans to work closely with international lenders.
The company is 100% state owned. Samruk-Energy accounts for about 30% of electricity generation and about 40% of the country's total coal production in 2019. Evaluation of the socio-economic consequences of a potential default of Samruk-Energy as moderate reflects the Agency's view that most of operations of subsidiaries will continue if the parent company cannot meet its obligations.
In addition to that, the Agency notes that Samruk-Energy has sufficient liquidity and cash to meet its short-term obligations in full.
Reference:
“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc.
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Government Relations and Communications Office of “Samruk-Energy” JSC.
Tel: (7172) 55-30-62;
An integrated planning system allows creating effective scenarios for the development of energy holding company entities by reducing the main variable cost items.
Samruk-Energy JSC has successfully introduced the Integrated Planning System (IPS) tool during the implementation of the Digital Transformation Program. The tool enables to create effective scenarios for the development of power plants by optimizing the main variable cost items.
The project’s scope at the first stage included two subsidiaries of the holding company: “Ekibastuz SDPP-1” LLP and “Moynak HPP” JSC. The Company’s management congratulated the members of the team for the development and implementation of a new tool on the achievement of the first results. Yedil Kopenov, Managing Director for Business Transformation of “Samruk-Energy” JSC, highlighted employees’ contribution to the project’s development - these are working groups of power plants and about 9 structural units of the Head Office.
The IPS project has been implemented at “Samruk-Energy” JSC since 2017 as part of a business transformation program. Serik Tutebayev, the Managing Director for Production and Asset Management, performed the role of sponsor for 3 years.
“I congratulate all colleagues on the successful completion of the first wave of the project. For me personally, the success of IPS introduction was obvious, because this system substiantially eases the scenario planning of the company’s activities, and the created graphical models shows the most profitable ways of further actions with the least error. And all this together allows the Company to significantly reduce costs, while receiving additional benefits”, - noted Serik Tutebayev.
The system was adjusted in the course of the project implementation, part of financial indicators were removed. According to specialists, IPS is an effective working tool for the company. So, the financial benefits for 2019 amounted to 1 365 mln. tenge with the approved annual plan of 977 mn. tenge. This has been made possible owing to the result of power plant’s units operation in the optimal mode, calculated in the IPS.
At the meeting, Ruslan Kusainov, the manager of “Integrated Planning System” project, told that the second wave of the project had already been launched at Ekibastuz SDPP-2. The plant plans to reduce about 1 bn.tenge costs until 2024 through the use of a new tool.
Indira Kyilybayeva, Director for management of portfolio of projects of Digital Transformation Office at “Samruk-Kazyna” JSC, noted that Samruk-Energy showed high financial benefits among all Fund’s portfolio companies where the IPS project was implemented.
The Sponsor, the project team, employees of power plants and the Head Office were awarded certificates of merit for the successful introduction of a new tool.
Coronavirus emergency state coincided with the final phase of the heating season and commencement of repair works at thermal and electric plants of the republic. Not a single case of accidents and shutdowns of strategic facilities that provide cities and rural settlements with essential services had taken place only thanks to a high level of expertise, strenuous efforts and mutual help of power engineers.
Today’s film is dedicated to inconspicuous heroes of spring of this year – power engineers.
At a meeting of the State Commission for Economic Modernization chaired by Prime Minister Askar Mamin, the issues of privatization of assets of JSC Sovereign Wealth Fund Samruk-Kazyna were considered.
The Comprehensive Privatization Plan for 2016-2020 includes 167 assets of Samruk-Kazyna JSC, of which so far clauses for 138 assets have been executed. In the process of implementation and liquidation / reorganization is 21 companies.
Due to the high volatility in the international capital markets, lower energy prices and a slowdown in the world economy, it was decided to postpone for 2021–2023 the deadlines for transferring a number of strategic assets to the competitive environment: Kazmunaigas, Air Astana, Tau Ken Samruk, Qazaq Air, Samruk-Energy, Kazakhstan Temir Zholy, etc.
Origin: primeminister.kz
“Samruk-Energy” JSC will cut its costs by 18, 5 bn. tenge in 2020. These will involve both current and capital expenditures. Actions on cutting costs are taken for purposes of implementing the instructions of Akhmetzhan Yesimov, the Chairman of “Samruk-Kazyna” SWF” JSC Executive Board, which were given at the meeting of operations headquarter of “Samruk-Kazyna” JSC.
As it is known, in March this year, the Fund’s top management and chief executive officers of portfolio companies discussed a mechanism for responding to occurred and potential risks in light of challenging global environment. Further to the meeting, the companies that are part of “Samruk-Kazyna” JSC were assigned a wide range of tasks and certain instructions including reducing costs that do not directly affect their operations.
Along with operating expenses, the company revised capital expenditures, optimization of which is 15, 8 bn. tenge, or 13% of total investment expenses. The following were optimized:
- Investment projects in the amount of 9,3 bn. tenge;
- Expenses for maintenance of production assets 2,3 bn. tenge, administrative assets - 36 mln. tenge;
- Other capital expenditures for 4,2 bn. tenge.
Today, 30% of employees of the Company’s Head office were shifted to remote work.
In general, at present “Samruk-Energy” JSC operations in power and coal sectors are carried out as usual.
Reference:
“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc.
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Government Relations and
Communications Office of “Samruk-Energy” JSC.
Tel: (7172) 55-30-62;
The coronavirus epidemic demonstrated the professionalism of Kazakhstani power engineers and showed high mobilization capabilities of the sector, even despite the wear and tear on the equipment.
11 confirmed cases of CVI were reported at the entities of “Samruk-Energy” JSC Ekibastuz energy complex during the state of emergency. As of today, 2 employees have recovered, 272 people are in home quarantine. This refers to “Bogatyr Komir” LLP, “Ekibastuz SDPP-1 named after Nurzhanov” LLP and “Ekibastuz SDPP-2 Plant” JSC.
Today, all “Samruk-Energy” JSC power holding company’s generating, transmission and distribution companies operate as normal and fully perform their obligations to consumers regarding the supply of electricity and coal shipment. During the state of emergency, from March - May 11, 2020, the amount of electricity generated by “Samruk-Energy” JSC power plants amounted to 4 984 109 thous. kW, the volume of coal sold over the same period was 9 462 590 tons of coal. SDPP-1, SDPP-2 and APP supplied over 1 mln.Gcal of heat to consumers.
Energy enterprises have made every effort possible to prevent the spread of coronavirus infection during the state of emergency and ongoing quarantine conditions. At the same time, the power engineers ensured the operation of power plants as usual in order to fully fulfill the tasks of providing consumers with electricity, heat and hot water. Today we can say that power engineers honorably went through the quarantine.
“Bogatyr Komir” LLP, the largest coal-mining enterprise, employs more than 6500 people. During the state of emergency, 251 employees were at home quarantine. Thanks to clear actions of miners, coal mining and shipment took place as usual. Employees, who can perform their job responsibilities at home, were shifted to remote work. Additional 16 buses were involved for safe delivery to the workplace.
At Ekibastuz SDPP-2, to ensure the continuity of the work process, 12,4% of employees who are at risk, were granted leaves for isolating them at home; due to the lack of staff and the absence of workers for temporary replacement, the shift supervisors, as well as part of the employees of the electric shop and the chemical shop, were transferred to a three-shift operation mode (seven days a week); critical areas and equipment that require ongoing maintenance by staff were identified, daily repair briefings have been transferred to remote mode.
At Ekibastuz SDPP-1, actions to ensure the protection of employees' life and health have been developed and are taken, and a “Comprehensive Plan of sanitary and anti-epidemic measures” have been put into effect. To date, 90 people are in quarantine. The lack of staff did not affect the capacity of the power plant and operating schedule. The situation did not affect the technological process. Production volumes comply with schedules of “KEGOK” JSC SO NDC.
Part of employees of “Almaty Power Plants” JSC (APP), the generating company of “Samruk-Energy” JSC Almaty energy complex, live outside the city. Employees were shifted to remote work within one day. The company decided to provide the staff who is directly engaged in manufacturing and repair works, but lives outside the metropolis, with accommodation in the city. It also reimbursed their housing costs. In total, during the quarantine period, on the basis of workers' requests, the company’s trade union concluded about 200 agreements with landlords and provided funds according to payment slips.
For reference:
“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, 100% owned by “Samruk-Kazyna” SWF JSC. It was established in 2007. Core business: electricity and heat production; transmission, distribution and sale of electricity, power coal mining. The holding company comprises energy and coal enterprises, including “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Bogatyr Komir” LLP, “Almaty Power Plants” JSC, “Moynak Hydropower Plant named after U.D. Kantayev” JSC, “Shardarinsk HPP” JSC, etc.
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Government Relations and Communications Office of “Samruk-Energy” JSC.
Tel: (7172) 55-30-62;