“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

Business model

Coal production and sales

“Samruk-Energy” JSC is one of the leading coal producers in the Republic of Kazakhstan. The Company’s asset “Bogatyr-Komir” LLP (operated jointly with "RUSAL" OC) accounts for about 40 % of the market. Most of the coal produced by the company is supplied to power plants that are part of “Samruk-Energy” JSC group of companies. In addition, coal is supplied to other power plants of the Republic of Kazakhstan and the Russian Federation, as well as municipal utilities of the region.

Generation

The group of companies owns 28 % of installed capacity of the Republic of Kazakhstan. “Samruk-Energy” JSC group of companies comprises such generating assets as “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Almaty Power Plants” JSC, “Moynak HPP” JSC, “Shardarinsk HPP” JSC and other generating companies, which in aggregate produced more than 29.7 % of the total electricity produced in the Republic of Kazakhstan.

Renewable Energy

“Samruk-Energy” JSC also have RE facilities as 45 MW wind power plant located in Ereymentau city, which is considered a first large-scale industrial power plant in the Republic of Kazakhstan, as well as 2 MW solar power plant nearby Kapshagay city. In 2018, the Company actively continued its activities aimed at development of promising RE projects, in light of this, 5 MW wind power plant and 1 MW SPP in Almaty region were put into operation; these projects were implemented as part of an intergovernmental agreement between Kazakhstan and the PRC.

Transmission, distribution

Electricity is mainly transmitted and distributed through main power grids of “KEGOC” JSC and grids of regional energy companies. “Samruk-Energy” JSC group of companies includes a regional distribution company “Alatau Zharyk Company” JSC. “Alatau Zharyk Company” JSC electricity transmission volume was 6,796 mln. kWh in 2018.

Wholesale

Generating companies of national importance as well as a number of major consumers represent the wholesale electricity market.

Retail

“Samruk-Energy” JSC aims to expand considerably the electricity sales in the domestic market by improving performance and changing of electricity market model in the future. Increasing competitiveness and flexibility of the sales policy allows increasing the market share both owing to its organic growth and owing to the growing number of customers – major electricity consumers with which the Company establishes long-term cooperation.

“Samruk-Energy” JSC group includes “AlmatyEnergoSbyt” LLP energy supply company, which provides electricity to more than three million residents of Almaty region.

“AlmatyEnergoSbyt” LLP electricity sales volume for 2018 amounted to 5,904 mln. kWh.

Export

The presence of competences allows “Samruk-Energy” JSC to expand its export activities substantially. The favorable economic and geographical position of the Republic of Kazakhstan and the availability of efficient generating facilities in combination with abundant energy resources taken together provide the potential for export in the traditional northern and in the promising southern direction.

In 2018 3.7 bln. kWh of electricity and 9.6 mln. tons of coal were exported to the Russian Federation.