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Kazakhstan Power Plants Must Provide Energy to 320 Projects Within Industrialization Program for 5 Years
Source: http://www.inform.kz/
Source Date: Friday, July 02, 2010
Focus: Knowledge Management in Government
Country: Kazakhstan
Created: Jul 05, 2010

In the Kazakh President's Address 'New Decade - New Economic Growth - New Opportunities of Kazakhstan' special attention is paid to the development of electric power industry of Kazakhstan. In accordance with the Forced Industrial Innovation Development Program we need faster growth of electric power industry development for providing the whole country with electricity.

The realization of 144 projects is planned this year, 72 projects have already been put into operation in the first half of the year. 320 investment projects are to be realized according to the Program in a five year span of time.
13 projects will be realized within the electric power industry.

According to the statistics, the use of electricity has increased to 9.7 percent since last year. If this tendency remains it is necessary to reconstruct and renovate existing facilities. Building of new facilities is also required.

Development of electric power stations is planned to be realized on the following conditions: technical re-equipment and reconstruction of the equipment installed now at the stations, commissioning of new capacities at the existing plants, building of new ones, involvement of alternative renewable energy sources.

At the end of 2008 a new mechanism of pricing on electricity was introduced with the purpose of attracting investors in repair and development of facilities. The mechanism provides for marginal, calculated and individual tariffs.

This mechanism of so called 'marginal tariffs' allows the power plants to plan their funds. In 2009 more than KZT 65 bln was invested in reconstruction and modernization of existing facilities, and more than 85 bln in 2010. According to the preliminary estimates, more than KZT 700 bln will be allocated for this purpose within 7 years.

Existing competitive electric power market of Kazakhstan is not sufficiently attractive for investors. Therefore the Government of Kazakhstan adopted the Resolution on approval of the concept for further development of market relations in the sphere of electric power in Kazakhstan. Target market model provides commissioning of new capacities.

The purpose of commissioning capacity market is to prevent the emergence of significant deficits in power, increase investment attractiveness of the sector, form objective pricing system. The concept of the corresponding bill was approved at the sitting of the Interdepartmental Commission on the issues of law-making on June 21, 2010.

In the process of planning the sector development special attention is paid to key power facilities. They are Balkhash Thermal Power Station, the large-scale project aimed at generating enough electricity for the needs of South Kazakhstan ensuring its electric power independence, Moynak Hydroelectric Power Station, the source of electric power for providing it to the southern regions of Kazakhstan where it is needed the most. Besides, they are the power units at Ekibastuz Hydropower Power Plant and at Aksu. At Ekibastuz Hydropower Power Station the installation of a new power unit will be conducted. The associated gas from oil fields will be used at gas-turbine electric power stations in West-Kazakhstan region and Kyzylorda region.

Development of the country's electric power industry is connected with restoration and development of generating capacities and involving of energy renewable sources. Wind energy, solar energy, geothermal energy, the energy of small rivers can be used on the territories of Kazakhstan. The increased electricity consumption rate and environmental restrictions on emissions of greenhouse gases that are produced by burning organic fuel lead to the necessity of development of such energy sources as named above.

According to the objective of the Forced Industrial Innovation Development Program of Kazakhstan, the volume of renewable electric power will reach 1 bln kWh per year which is to be more than 1 percent of total energy consumption. After the draft law 'On the support of use of renewable energy sources' was adopted last year several national and foreign investors expressed their willingness to implement projects in this sphere. Within the framework of this program a Karatal Hydroelectric Power Station was put into service at Karatal River in Almaty region on June 28.

Several pilot projects are developed in the field of wind power, as well.
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