In April 2023, changes were made to the "Power industry" law in Kazakhstan, introducing the "Single Buyer" target market model for centralized electricity purchase and sale, along with a real-time balancing electricity market.

The Ministry of Energy is currently working on appropriate amendments to the by-laws.

In response, a two-day working meeting was held on May 25-26, 2023 in Almaty city, at “AlmatyEnergoSbyt” LLP office. Representatives from the Head office, “Samruk-Energy” JSC, “Ekibastuz SDPP-1 named after B. Nurzhanov” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Almaty Power Plants” JSC, “Moynak HPP” JSC, “Samruk Green Energy” LLP, “Alatau Zharyk Company” JSC, “AlmatyEnergoSbyt” LLP, “Shardarinsk HPP” JSC, “First Wind Power Plant” LLP, and “Qazaq Green Power” LLP arrived to take part in the development, review, and discussion of by-laws.

The adopted amendments to the Law of the Republic of Kazakhstan "On power industry," which regulate the transition to the new target market model "Single Purchaser," involving centralized purchase and sale of electricity, and the operation of the balancing electricity market in real-time mode from July 1, 2023, were considered during the working meeting.

Additionally, discussions were held about the possibility of creating a balance provider, responsible for financial settlements in the balancing electricity market for both its own imbalances and those of other electricity market participants.

During the course of the working meeting, participants further engaged in discussions regarding the market changes associated with the implementation of the Single Purchaser and the balancing electricity market in the RK. Additionally, they addressed the modifications to the Rules governing the provision of services by the system operator and the organization and operation of the market for system and auxiliary services.

The working meeting proved to be effective, with consultations aimed at preparing for outreach campaigns to regions between May 29 and June 13, 2023, involving “KEGOC” JSC, “KECMO” JSC, and “SFC” LLP, to ensure information dissemination among entities of the wholesale electricity market. A list of questions and proposals for draft laws and regulations regarding the Single Buyer and the balancing electricity market was also compiled.

Samruk-Energy green assets are capturing attention at the Astana International Forum.

The Astana International Forum, held in Astana on June 8-9, is witnessing active participation from “Samruk-Energy” JSC, which is a part of “Samruk-Kazyna” Sovereign Wealth Fund's portfolio companies. It actively showcases its "green" assets, emphasizing its commitment to environmental sustainability and the advancement of renewable energy sources.

At the Astana International Forum, “Samruk-Energy” JSC is highlighting noteworthy assets such as the Moynak HPP, Kapshagay HPP, Shardarinsk HPP, along with “First Wind Power Plant” LLP (WPP), “Energia Semirechia” LLP (WPP), “Samruk-Green Energy” LLP (SPP, WPP) others.

“Samruk-Energy” JSC is proud of its accomplishments in green energy production. In 2022, these renewable energy facilities generated a total of 417.5 mln. kWh, surpassing the previous year's results by 28.3% (325.3mln. kWh).

Significantly, “Samruk-Energy” JSC holds a substantial market share in Kazakhstan's clean electricity sector. In 2022, the company's share accounted for 8.3% of the country's total renewable energy generation, confirming its leading role in the development of green energy and its commitment to reducing the carbon footprint and ensuring environmental sustainability in Kazakhstan.

“Samruk-Energy” JSC will continue to invest in innovative and environmentally friendly solutions, contributing to the diversification of Kazakhstan's energy sector and supporting the achievement of long-term climate goals.

 "Development Bank of Kazakhstan" JSC (hereinafter referred to as "DBK" or the "Bank") has entered into a credit line agreement with "Almaty Power Plants" JSC (hereinafter referred to as "APP"), a company within the structure of power holding company "Samruk-Energy" JSC. The financial resources, allocated alongside other creditors such as the Asian Development Bank and the European Bank for Reconstruction and Development, will be utilized for the modernization of CHP- 2 named after Zhakutov in Almaty.

Upon completion of the project, scheduled for the end of 2026, the installed electric capacity of the power plant's equipment will increase from 510 MW to 600 MW, while the thermal capacity will reach 957 Gcal.

Simultaneously, transitioning the power plant to a more environmentally friendly fuel source – natural gas instead of coal – will reduce the station's adverse impact on the environment. This shift will completely eliminate emissions of sulfur dioxide and ash into the atmosphere, and carbon dioxide (CO2) emissions will be reduced by one and a half times.

"Although APP is a quasi-state company, DBK became involved in the project for two reasons. Firstly, there is co-financing involving international financial institutions. Secondly, the project aligns with ESG principles, reducing the power plant's environmental footprint while enhancing the reliability of energy supply to the Almaty metropolitan area. The environmental agenda of this project played a significant role in our decision to provide financing," commented Marat Elibayev, Deputy Chairman of the Board at DBK.

As emphasized by Asel Arginbayeva, Managing Director for Economy and Finance at APP, "We are systematically progressing through the stages of preparing for the implementation of the aforementioned project. The signing of today's agreement is an important step in advancing the project, particularly in terms of commencing construction within the set timeframe. We are embarking on a new stage of collaborative work."

The credit agreement was signed by Asel Arginbayeva, Managing Director for Economy and Finance at APP, and Marat Talgatovich Elibayev, Deputy Chairman of the Board at DBK.

"Samruk-Energy" JSC successfully underwent its initial certification audit for compliance with the requirements of five international standards.

The corporate governance system of "Samruk-Energy" JSC has been certified by meeting the criteria of the following international standards:

- ISO 9001 "Quality Management Systems";

- ISO 45001 "Occupational Health and Safety Management Systems";

- ISO 50001 "Energy Management Systems";

- ISO 14001 "Environmental Management Systems";

- ISO 37001 "Anti-Bribery Management Systems".

This marks one of the initial instances of group certification within the energy sector across these five international standards.

The certification audit was conducted by the independent international conformity assessment body, MS Certification Services, with the participation of world-class auditors, led by Mr. A.K. Garg.

The audit encompassed the assets of the company group, including: "Ekibastuz SDPP-1 named after B. Nurzhanov" LLP, "Ekibastuz SDPP-2 Plant" JSC, "Almaty Power Plants" JSC, "Moynak HPP" JSC, "Samruk Green Energy" LLP, "Alatau Zharyk Company" JSC, "AlmatyEnergoSbyt" LLP , "Shardarinsk HPP" JSC,  "First Wind Power Plant" LLP, and "Samruk-Energy" JSC’s head office.

The corporate governance system was implemented to facilitate effective and transparent management of "Samruk-Energy" JSC company group's operations. It aligns with the concept of sustainable development and encompasses interconnected domains, such as quality management, health and safety at work, environmental protection, energy efficiency, anti-corruption, and fraud prevention.

Collectively, these efforts will ultimately elevate the functioning of the unified corporate governance system to a higher quality level, while also enhancing the operational efficiency of the companies.

“Samruk-Energy” JSC is the largest power holding company in Kazakhstan, with 100% of its shares owned by  "Sovereign Wealth Fund "Samruk-Kazyna" JSC. Established in 2007, it operates in various sectors. Its primary activities include the production of electricity and heat, transmission, distribution, and sales of electricity, as well as the extraction of thermal coal. The holding encompasses power generation and coal enterprises, including entities like "Ekibastuz SDPP-1", "Ekibastuz SDPP-2 Plant" JSC, "Bogatyr Komir" LLP, "Almaty Power Plants" JSC, "Moynak HPP" JSC,  "Shardarinsk HPP" JSC, and more.

To explore the potential for entering into a contract regarding the purchase and sale of electricity, the Partnership arranged a visit for “Kazakh-French Enterprise “KATCO” LLP representatives. The visit took place on April 25, 2023, and included tours of a 1 MW solar power plant in Almaty and a 5 MW wind power plant in Nurly rural area in Enbekshikazakh district.

During the visit, Mr. Temirbaev N.S., Deputy General Director for Production - Chief Engineer, and Mr. Aubakirov E.E., Engineer of RES and HSE, acquainted the staff of “Kazakh-French Enterprise “KATCO” LLP with the operational aspects of these power plants. Furthermore, discussions were held regarding the potential for enhanced mutual collaboration in the realm of sustainable energy.

Author: Bektasov Dias-Esimzhan Baurzhanuly, senior manager of Production Efficiency Department, "Samruk-Energy" JSC.

To mitigate the adverse environmental impact, a need arises for equipment modernization and incorporation of contemporary technologies into new investment ventures. An all-encompassing strategy is vital for fostering an environmentally conscious culture. "Samruk-Energy" JSC is dedicated to the advancement and implementation of state-of-the-art technologies, including emission-capturing technologies.

On August 25, 2022, a Memorandum of Understanding was signed between “ESDPP-1” LLP and “Mitsubishi Heavy Industries Power Environmental Solutions, LTD”. The aim is a collaborative exploration of MEEP (Moving Electrode Electrostatic Precipitator) technology's application. This innovative technology facilitates the reduction of particulate matter emissions in line with European standards.

“Samruk-Energy” JSC anticipates that MEEP technology will enhance the performance of the existing electrostatic precipitators at ESDPP-1 power plant. To initiate this study, Mitsubishi Heavy Industries Power Environmental Solutions, LTD dispatched experts to inspect the current electrostatic precipitators at SDPP-1 power plant from April 11 to 15 of this year.

Initial assessments of the installed electrostatic precipitators at ESDPP-1 indicate that an equivalent reduction in ash concentration output could be achieved by incorporating 2 MEEP fields alongside the reconstruction of 3 existing electric fields.

Furthermore, “Samruk-Energy” JSC is engaged in collaboration with the Mitsubishi Heavy Industries Power Environmental Solutions, LTD group concerning Total Air Quality Control System (AQCS) initiatives, encompassing sulfur (DeSOx) and nitrogen oxides (DeNOx) reduction.

“Samruk-Energy” JSC is committed to further concerted actions aimed at diminishing environmental impact, working closely with the Mitsubishi Heavy Industries Power Environmental Solutions, LTD group.

The electric power enterprises within Almaty energy complex of “Samruk-Energy” JSC are concluding the autumn-winter heating period of 2022-2023.

Throughout this season, the power stations ensured an uninterrupted supply of heat and electricity to the residents of Almaty city and Almaty region. However, the accidents that occurred during the winter at thermal power plants and heating networks in various cities of the country are increasingly causing concerns among power engineers at Samruk-Energy.

As highlighted by “Almaty Power Plants” JSC (APP), despite the challenging autumn and winter conditions, the company's enterprises delivered heat in its entirety as per consumer demand. Approximately 20 boiler units and 13 steam turbines remained operational. Within this period, a total of 2.9 billion kWh of electricity and about 4.7 million Gcal of heat were generated.

The energy transmission company “AZhC” JSC performed works on over 2,000 km of overhead and cable lines, conducted repairs on more than 900 power transformers and substation equipment, and rehabilitated over 70 power facilities. The dedication of the company's employees contributed to the reliable operation of power plants and the maintenance of power line capacity.

Concurrently, specialists from Almaty energy complex of “Samruk-Energy” JSC are increasingly expressing concerns due to the mounting issues connected to the slow pace of commissioning new capacities and the diminishing safety margin of existing generation sources. Presently, the degree of wear of primary equipment at “APP” JSC stations stands at 78.7%.

According to industry experts, energy-producing organizations in Kazakhstan are facing financial shortages for capital repairs, ash dump construction, and the modernization, expansion, and renewal of critical assets. The current geopolitical circumstances worldwide, resulting in the disruption of historically established technological ties with manufacturers of generating equipment, are exacerbating this situation. Ultimately, this contributes to escalated costs for energy-producing entities. For instance, the cost of pipes for steam boilers and pipelines has surged by 236% in a span of two years.

Despite these challenges, the power engineers within “Samruk-Energy” JSC group of companies continue to fulfill their commitments to suppliers by providing uninterrupted heat and electricity. During the well-known crisis situations involving heat sources last winter in several cities of the country, specialists from the companies under the power holding company's umbrella assisted in resolving accidents and conducting technical inspections of energy sources and heating plants in Ekibastuz, as well as at Karaganda CHP-1, CHP-3, Karaganda GRES-1, CHP- 2 in  Temirtau city, and Balkhash TPP. "Samruk-Energy" JSC has initiated the development of a feasibility study for construction of CHP-3 in Semey city.

Information for potential suppliers.

“Samruk-Energy” JSC informs that on March 20, 2023, the Commission of the Fund for Preliminary Qualification Selection approved the category "Implementation of a large-scale investment project for the turnkey construction of a natural gas-based power plant for generation of electricity and heat" which is being procured among qualified potential suppliers.  "Almaty Power Plants" JSC acts as the project owner.

To participate in the preliminary qualification selection, it is necessary to register on the electronic procurement portal of  “SWF "Samruk-Kazyna" JSC at zakup.sk.kz and submit an application for the chosen category. The preliminary qualification of potential suppliers is conducted by the Qualification authority represented by "Samruk-Kazyna Contract" LLP.

For more information, please visit the link: https://www.samruk-energy.kz/ru/ob-yavleniya-o-provodimykh-zakupkakh/1265-ao-samruk-energo-informiruet-chto-20-marta-2023-goda-komissiej-fonda-po-voprosam-predvaritelnogo-kvalifikatsionnogo-otbora-utverzhdena-kategoriya-realizatsiya-krupnogo-investitsionnogo-proekta-po-stroitelstvu-pod-klyuch-elektricheskoj-stantsii-na-prirodnom-gaze-po-vyrabotke-elektricheskoj-i-teplovoj-energii

On March 10, 2023, a regular open meeting of the Public Council chaired by Bolat Zhamishev took place in Samruk-Kazyna. The topic of the meeting – Health & Safety in the Fund’s Group of Companies.

The meeting gathered Kazakhstani public figures, politicians and experts. Gibrat Auganov, the Managing Director of Samruk-Kazyna for Public Relations, Social and Labor Relations and Occupational Safety, answered their questions. The event attracted a lot of media attention.

Employee health - the personal responsibility of management

According to him, last year the first specialized H&S forum was held in the Samruk-Kazyna group. The Fund entrusted the Heads of 13 largest portfolio companies with personal responsibility for the safety and health of employees at that event. During the year, similar labor protection events were held for the first time in Kazakhtelecom, KEGOC, QazaqGaz and Samruk-Kazyna Ondeu. The Heads of subsidiaries, branches and structural divisions have already assumed obligations to ensure the safety of employees there.

The Heads of the CEO-1 level of the Samruk-Kazyna companies responsible for H&S have the obligation to check production sites at least once every 2 months. Last year, they conducted 43 such inspections.

Thanks to the work carried out in 2022, the total number of the injured of industrial accidents in the Fund group was reduced by 16% compared to 2021. The rate of injury with disability LTIF was 0.16. The rate of deaths decreased by 11%.

Training according to the best international standards

To improve industrial safety in the Samruk-Kazyna group, training and seminars are constantly held so that employees and managers take a responsible approach to safety issues and demonstrate leadership and involvement by their example. The training is conducted not only according to mandatory programs in accordance with the legislation of the Republic of Kazakhstan on labor protection, industrial and fire safety, but also according to the most modern international practices.

Thus, 98 employees have been trained on courses from the National Examination Board in Occupational Safety and Health of Great Britain (NEBOSH). According to the course of the British Institute of Safety and Health (IOSH) - 286 employees. Another 2,430 employees have completed defensive driving course. 

          Samruk-Kazyna has also developed its own corporate training course “Occupational Safety Culture”, which has been approved by the British IOSH Institute. The Fund plans to train 100% of production workers on it.

In addition, there is a constant exchange of experience in the field of occupational safety, not only within the Fund group, but also with other leading companies in Kazakhstan. Recently, employees of the industrial safety services of Samruk-Kazyna companies have visited colleagues from Tengizchevroil, North Caspian Operating Company, Karachaganak Petroleum Operating. Kazpost employees visited the Trade and Transport Company as part of the exchange of experience. AlES employees got acquainted with electrical safety at the power complex of SKZ-U LLP.

The Fund’s group of companies is also actively implementing digital solutions and automated systems aimed at reducing injuries and preventing industrial accidents. Readiness to eliminate possible emergencies is ensured by conducting joint training alarms and emergency response training with portfolio companies.

Opinions and suggestions of experts

The topic of occupational safety aroused the interest of experts and public figures. The Head of the Labor and Social Protection Committee of the Ministry of Labor, Social Protection of the Population of the Republic of Kazakhstan Tolegen Ospankulov noted that the work of many production workers, in particular railway fitters, is itself associated with physical exertion and health risks. Gibrat Auganov noted that Samruk-Kazyna controls that an effective accident insurance system works in each company of the Fund group.  

Askar Amanbai from Bureau Veritas asked whether the Samruk-Kazyna Group is developing international cooperation in the field of labor protection. Gibrat Auganov replied that each of the holding companies exchanges experience with foreign partners in this area. For example, KTZh cooperates with the International Union of Railways, oil and gas companies - with foreign business partners.

Alimzhan Bekmagambetov from the Republican Research Institute for Labor Protection of the Ministry of Labor, Social Protection of the Population of the Republic of Kazakhstan suggested that Samruk-Kazyna use not only international experience in this area, but also the achievements of Kazakhstani specialists. Gibrat Auganov said that the Fund is open to new ideas and is ready to meet with domestic experts. Bolat Zhamishev suggested that they conduct an independent examination of the activities of the Fund’s group on labor protection.

“We need to pay great attention to the issue of labor protection and never stop there. Security needs to be dealt with daily. This corresponds, among other things, to the principles of ESG, according to which the Samruk-Kazyna Fund operates. We need to define clearly the level and directions of investments that we are ready to invest in occupational safety. For example, in the purchase of new technical equipment. Our companies already have successful examples of such innovations. At the same time, it is necessary to pay attention to labor protection not only at our enterprises, but also in contracting organizations”,- Bolat Zhamishev, the Chairman of the Public Council, member of the Board of Directors of Samruk-Kazyna, summed up.

An informal gathering of HR specialists from various subsidiaries of “Samruk-Energy” JSC (including “Alatau Zharyk Company” JSC, “Almaty Power Plants” JSC, “AlmatyEnergoSbyt” LLP, “Shardarinsk HPP” JSC, “Moynak HPP” JSC, and “Samruk Green Energy” LLP) took place in Almaty city.

During this meeting, the HR management of the Fund represented by Karimova E.R., introduced the attendees to the new Human Resources Policy of the Fund. The HR professionals from subsidiaries learned about the policy's new directions, its primary objectives, and the newly established corporate values of the Fund, often referred to as HIT. Representatives from the Fund addressed inquiries from the participants, addressing topics such as PYTP, salary enhancements, moratorium, and related matters.

Additionally, the meeting attendees displayed interest in the innovative offerings of “Samruk Business Academy” PI, as they were presented by its director, Dzhumagazieva Sh.K. These offerings include the HR School, IR School, PR School, among others.

To help subsidiary companies get a better understanding of the latest trends and most effective HR practices, they've been given the opportunity to participate in the annual HR conference. Furthermore, they were proposed a productive collaboration with “Samruk Business Academy” PI.

With the aim of fostering closer collaboration and interaction, at the Fund's initiative, a decision has been made to establish a common chat comprising staff from the subsidiaries and the HR management of the Fund. During an informal meeting held with the HR team from “Samruk-Energy” JSC SA, the Fund's HR management introduced the new HR Policy of the Fund.