“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

“Samruk-Energy” JSC in electric energy production sector

Electricity output by energy-producing organizations of “Samruk-Energy” JSC in 2018 amounted to 31.7 bln. kWh. The share of electricity generation by power plants of “Samruk-Energy” JSC amounted to 29.7% of the total electricity production in the UES of Kazakhstan.

The share of electricity production by energy-producing organizations of “Samruk-Energy” JSC using renewable energy sources amounted to 1.1% of the total electricity generated by “Samruk-Energy” JSC and 26.6% of the total volume of renewable energy electricity in the Republic of Kazakhstan (renewable electricity production by “Samruk-Energy" JSC amounted to 355.4 mln. kWh).

Dynamics of electriciny production by energy producing organizations of "Samruk-Energy" JSC, bln. Kwh

“Samruk-Energy” JSC in electric energy production sector, bln. Kwh

The share of renewable electricity production by “Samruk-Energy” JSC in Kazakhstan, mln. kWh

mln. kWh

Description

2017

Share in the RK, %

2018

Share in the RK, %

∆  2018/2017гг,

Mln. kWh

%

Production of renewable electricity by “Samruk-Energy” JSC

367.8

33.2

355.5

26.6

–12.3

–3.3

 Cascade of small HPP of “APP” JSC

198.2

17.9

194.4

14.6

–3.8

–1.9

“Samruk-Green Energy” LLP

3.2

0.3

3.2

0.2

0.0

0.0

“First Wind Power Plant” LLP

166.4

15.0

157.9

11.8

–8.5

–5.1

The decrease in “Samruk-Energy” JSC renewable electricity production indicators  was driven by an increase in electricity production volumes by other renewable energy facilities in connection with the commissioning of new renewable energy facilities in Kazakhstan.

“Samruk-Energy” JSC production figures (broken down by producers)

Subsidiary and affiliate name

2016 (actual)

2017 (actual)

2018 (actual)

2018
deviation from 2017, %

2019 (forecast)

2020 (forecast)

Electricity production volume, mln. kWh1

“Almaty Power Plants” JSC

5,911.4

5,712.4

5,599.1

98

5,382.4

5,382.4

Basic capacity, MW

 

670.0

670.0

“Ekibastuz SDPP-1” LLP

9,037.3

14,797.0

19,121.6

129

18,975.3

20,315.1

Incl.export

133.2

4,705.5

3,757.9

80

Basic capacity, MW

 

2,596.3

2,596.3

“Ekibastuz SDPP-2 Plant” JSC

4,976.1

5,495.5

5,436.5

99

5,884.8

6,011.3

Basic capacity, MW

 

800.0

800.0

“Shardarinsk HPP” JSC

334.0

359.4

348.7

97

378.0

550.6

Basic capacity, MW

 

43.2

62.9

“Moynak HPP” JSC

1,165.5

1,226.5

1 036

84

906.0

906.0

Basic capacity, MW

 

298.0

298.0

“Samruk-Green Energy” LLP

3.2

3.2

3.2

100

21.9

22.2

“FWPP” LLP

151.8

166.4

157.9

95

167.2

172.2

 Total

21,579.4

27,760.3

31,703.1

114

31,715.6

33,359.8

Electricity transmission volumes, mln. kWh2

“Alatau Zharyk Company” JSC

6,252.0

6,527.9

6,795.9

104

6,945.9

7,120

Total

6,252.0

6,527.9

6,795.9

104

6,945.9

7,120

Electricity sales volumes, mln. kWh3

“AlmatyEnergoSbyt” LLP

5,766.8

5,767.5

5,904.3

102

5,745.0

5,854.1

 Total

5,766.8

5,767.5

5,904.3

102

5,745.0

5,854.1

Heat production volumes, thous.Gcal1

“Almaty Power Plants” JSC

4,970.5

5,223.3

5 616.8

108

5,142.5

5,142.5

 “Ekibastuz SDPP-2 Plant” JSC

70.8

66.5

78.6

118

76

76

“Ekibastuz SDPP-1” LLP

 

8.2

59.9

734

307.3

307.3

Total

5,041.4

5,298.0

5 755.3

109

5,525.8

5,525.8

Coal sales volumes, mln. tons

35.1

40.9

45.2

110

42.3

42.9

Note:

1 for comparison reasons. electricity and heat outputs in 2017 do not include “Aktobe CHP” JSC. which was sold in 2017.  
2 for comparison reasons. electricity transmission volumes in 2017 do not include “EK REC” JSC and “MDPGC” JSC. which were sold in 2017.
3 for comparison reasons. electricity sales volumes in 2017 do not include “ShET” LLP. which was sold in 2017.

The main increase in electricity production was owing to an increase in the “Ekibastuz SDPP-1” LLP output by 4,325 mln. kWh.

The decrease in output of HPP by 320 mln. kWh was driven by the decrease in water inflow at the Moynak hydro power plant. Kapchagai hydro power plant and the Shardara hydro power plant. Decrease in the sale of FWPP electricity by 8 million kWh occurred due to a decrease in the average wind speed.

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

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

Forecast for the future period:

The volume of electricity production in the forecast for 2019 is projected with a gradual increase in relation to the actual figure of 2018. The increase in the volume of electricity production in 2019 by 12.5 mln. kWh is mainly driven by the growth in the volumes of electricity production by “Ekibastuz SDPP-2 Plant” JSC. At the same time, “Ekibastuz SDPP-1” LLP plans to replace electricity supplies from exports to the Russian Federation to the domestic market in 2019.

Heat production volumes in 2018 amounted to 5,775 thous. Gcal; it increased as compared to  the volume of 2017 (an increase of 457 thousand Gcal or 9%) mainly due to an increase in heat production by 394 thous. Gcal or 7.5% at “Almaty Power Plants” JSC.

Dynamics of changes in heat production volumes, thous.Gcal

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

Forecast for the future period:

Heat production volumes in the plan for 2019 is expected to decrease by 4% against the actual figure of 2018 mainly due to reduction of heat production volumes at “Almaty Power Plants” JSC.

Electricity transmission volumes amounted to – 6,796 mln. kWh. increased as compared to 2017 volumes (a 268 mln. kWh increase). The increase in the volume of electricity transmission at "Alatau Zharyk Company" JSC was driven by the growth of consumption of Almaty region in connection with lower temperatures in January–February. December 2018 and higher temperatures in August 2018.

Grid losses according to results of 2018 remained at the same level as compared with the same period of 2017. As a whole. loss rate of “Alatau Zharyk Company” JSC is lower than the standard established by CRNM and PC.

Forecast for the future period:

The volume of transmission and distribution of electricity in 2019 is expected to increase by 2.4% compared with the actual figure of 2018 mainly due to the growth of electricity transmission volumes at “Alatau Zharyk Company” JSC.

The volume of electricity sales volume at power supply organizations for the reporting period amounted to 5,904 mln. kWh. which is 137 mln. kWh higher than 2017 or 2.4% compared with 2017 in connection with the growing number of consumers at “AlmatyEnergoSbyt” LLP.

Description

Actual 2016

Actual 2017

Actual 2018

Deviation

%

AlmatyEnergoSbyt

Number of consumers, incl.:

781,734

800,448

817,025

16,577

2.1

Population

752,711

770,245

785,393

15,148

2.0

Corporate entities

29,023

30,203

31,632

1,429

4.7

Sales volume, mln. kWh

5,767

5,767

5,904

137

2.4

Forecast for the future period:

Electricity sales volume in the forecast for 2019 decreases by 3% from the actual figure of 2018. In the forecast for 2020, the volume of electricity sales increases by 2% compared with the forecast for 2019.

An increase in total sales of electricity of “Samruk-Energy” JSC

In 2018 the volume of electricity supply from power plants of Samruk-Energy JSC amounted to 29.936 mln. kWh, which is 12% more than in 2017. Including:

  • To in-house consumers which are members of “Samruk-Energy” JSC group (“Bogatyr Komir” LLP, “AlmatyEnergoSbyt” LLP, “Alatau Zharyk Company” JSC) – 6,705.4 ln. kWh;
  • To third party distributors that are not members of “Samruk-Energy” JSC group – 23,230.6 mln. kWh which is 16% more than 2017.

Electricity sale

Indicators

2017

share. % own/ third-p. cons

2018

share. % own/ third-p.cons

Δ. mln. kWh

Δ. %

“Samruk-Energy” JSC

26,784.6

 

29,936

 

3 151.4

112

To own consumers

6,734

25

6,705.4

23

–28.6

99

Third party consumers

20,050.6

75

23,230.6

77

3 180

116

As can be seen from the table above, “Samruk-Energy” JSC power plants sold 77% of the electricity to third-party consumers, competing with other power plants.

In the context of deteriorating market conditions and surplus of capacities one of the strategic objectives of Company is to increase electricity sales volumes. The Trade house directly communicates with entities in the electricity market of Kazakhstan and neighboring countries and also performs commercial dispatching – the distribution of company’s group electricity volumes to consumers in Kazakhstan. Based on the feasibility of subsidiaries and associated power plants’ loads produces daily schedules of “Samruk-Energy” JSC group appropriately distributes the volumes reported at their power plants. The Trade house also controls issues associated with power supply to consumers during emergency shutdowns of power units by replacing emergency retired assets from other energy sources.

With the direct involvement of the Trade House in the implementation of the flexible pricing policy under conditions of capacity surplus in the market and load optimization at generating enterprises, “ESDPP-1” LLP, “ESDPP-2 Plant” JSC, “APP” JSC, electricity was successfully sold at centralized auction to everyone who wanted to purchase electricity at competitive market prices.

In 2018 “ESDPP-1” LLP and “ESDPP-2 Plant” JSC attracted 25 wholesale market entities (“Silk Way Energy” LLP, “Energy Innovations” LLP, “Altyn-Energo-Service” LLP, “DHT Neftegazmash-Service” LLP, “Samga Development" LLP, “Zhambyl Electric Networks” LLP, “Taraz Electrosnab” LLP, “Zharyk 65” LLP, “Pavlodarenergosbyt” LLP, etc.), which were supplied with 893 mln. kWh.

“Ekibastuz SDPP-1” LLP exported 3,757.98 mln. kWh in 2018 to the Russian Federation.

The successful result of sales activities of the largest power plants ESDPP-1 and ESDPP-2 is the increase of electricity sales volumes:

Description

Plant

2016

2017

2018

Generation

ESDPP-1 and ESDPP-2

14,013,464

20,292,465

24,558,117

Sales (with export), kWh

ESDPP-1 and ESDPP-2

13,228,707

19,320,907

23,500,927

Sales (without export), kWh

ESDPP-1 and ESDPP-2

11,237,032

14,615,371

19,742,947

“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 "KEPMO" JSC during 2018.

Real auction of electric capacity for the Northern and Southern zones was held on December 5, 2018, at which the Company's power plants sold their volumes of services for maintaining the availability of electric capacity.

According to the results of centralized auction of capacity, which took place on the trading platform of “KEPMO” JSC, the power plants of the Company sold 2,148.7 MW at a price of 590 thous. tenge / MW * month.

As part of the introduction of the capacity market, “Samruk-Energy” JSC implements a project, which is scheduled to be completed by 2021. The establishment of a sales department and a commercial dispatching department based on the Trade house, thus a complete centralization of trading activity of “Samruk-Energy” JSC’s six subsidiaries is expected. According to the new operating model, modes and daily schedules, export deliveries, interaction with "KEGOC" JSC, "KEPMO" JSC and other entities will be managed at the level of the Head Office.

The Company believes that centralization of management will enable to achieve optimal loads of electricity producing companies, while the old model did not consider the possibility of competition between them.

The centralized participation in online capacity trades provides for the prompt adoption of correct management decisions, which contribute to maximize the profitability, as well as increase the effectiveness of participation in the capacity market.