Astana Finance Days 2024. Financing the energy transition. Turning concepts into practice

On September 5, 2024, during the annual financial conference Astana Finance Days 2024, a session on "Financing the energy transition: turning concepts into practice" was held at the Astana International Financial Centre. The session was moderated by Zulfiya Suleimenova, Advisor to the President and Special Representative of the President of Kazakhstan for International Environmental Cooperation. Representing Samruk-Energy, Almasbi Kamalov, Managing Director for Economics and Finance, took part as a speaker.  

Samruk-Energy's presentation focused on current trends in the energy sector and the factors shaping the company’s development strategy. It was noted that in partnership with global leaders in the energy sector, Samruk-Energy plans to implement renewable energy projects with a total capacity of approximately 6 GW. 

To achieve these goals, Samruk-Energy intends to actively utilize financial tools for the energy transition. Previously, the company successfully issued Samruk-Kazyna Group’s debut green bonds and sustainability bonds. Currently, the company is in active discussions with international export credit agencies and development finance institutions, such as MIGA. These instruments will provide access to long-term foreign investments under optimal conditions. 

 

Samruk-Energy begins construction of a CHP in Kokshetau

As part of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the construction of coal-fired combined heat and power (CHP) plants in the cities of Kokshetau, Semey, and Ust-Kamenogorsk, a contract for the development of design and cost estimate documentation for the "Construction of a CHP Plant in Kokshetau city" project was signed on August 29th of this year between “Kokshetau CHP” LLP and INTER RAO-Export LLC.

“Kokshetau CHP” LLP was established by a joint decision of “Samruk-Energy” JSC and “Samruk-Kazyna” JSC to serve as the client for the project and to manage the operation of the newly constructed CHP plant.

The project involves the construction of a new CHP plant in the city of Kokshetau with an electrical capacity of 240 MW and a thermal capacity of 520 Gcal/h. The plant will include technological solutions that allow for a future conversion from coal to natural gas.

The construction of the CHP plant in Kokshetau will meet the growing demand for electricity and heat for industrial enterprises, businesses, and residents. During the peak construction phase, approximately 1,500 workers will be employed, and the subsequent operation of the plant will create over 400 permanent jobs.

The future CHP plant will be built on a vacant site near the existing district heating plants RK-1 and RK-2. Emissions from the new CHP plant will be lower than the combined emissions from the existing heating plants in Kokshetau city.

Construction work on the CHP site is scheduled to begin in September of this year, and orders for the production of the main and auxiliary equipment will be placed by the end of the year.

Ekibastuz SDPP-2 signs EPC contract for the construction of units 3 and 4

Ekibastuz SDPP-2 is implementing an investment project titled "Expansion and Reconstruction of Ekibastuz SDPP-2 with the installation of Units 3 and 4." As part of this project, an EPC contract was signed on August 27, 2024, with a Russian-Kazakh Consortium.

The EPC contract includes the design, equipment supply, and turnkey construction of Units 3 and 4, each with a capacity of 540 MW. Unit No. 3 is scheduled to be commissioned in 2028, and Unit No. 4 in 2030. Upon completion, the total capacity of Ekibastuz SDPP-2 will reach 2,080 MW.

The project will be financed through a combination of the company's own funds and a preferential loan provided by Russian financial institutions at a subsidized interest rate as part of an export program.

This year, the project will focus on developing design and estimate documentation, placing orders for main and auxiliary equipment, and conducting preparatory construction and installation work.

The implementation of the "Expansion and reconstruction of Ekibastuz SDPP-2 with the installation of units 3 and 4" project will make a significant contribution to addressing the energy deficit and ensuring the country’s energy security.

For reference: "Ekibastuz SDPP-2" JSC is a subsidiary of "Samruk-Kazyna" JSC (50%) and "Samruk-Energy" JSC (50%).

 

Unit No. 1 at Ekibastuz SDPP-1 has been commissioned

As part of the project "Restoration of Unit No. 1 with the Installation of new electrostatic precipitators" at Ekibastuz SDPP-1 named after Bulat Nurzhanov, Unit No. 1 has been connected to the grid.    

The project's goal is to meet the country's growing demand for electricity. The project included the installation of a modernized 540 MW unit with enhanced energy efficiency and reduced pollutant emissions. Since mid-July, Unit No. 1 has been online, generating over 460 million kWh of electricity.    

Currently, commissioning work is being finalized, and the Certificate of Acceptance is planned to be signed in October 2024, officially commissioning the facility.    

Thus, during the autumn-winter period of 2024-2025, Ekibastuz SDPP-1 will be ready to operate in an eight-unit mode. For the first time in 30 years, the plant will be able to reach full capacity with a load of 4,000 MW.    

"Ekibastuz SDPP-1" LLP is part of the group of companies owned by "Samruk-Energy" JSC which holds a 100% stake in the power plant.    

 

Veteran miners honored at Bogatyr Komir ahead of Miner’s Day

Festivities marking Miner’s Day have begun at Bogatyr Komir, where veteran miners and distinguished workers who have dedicated decades of service to the company were honored today. 

The event took place in a warm and friendly atmosphere, with young miners organizing a special program for the esteemed guests. In return, the veterans expressed their gratitude to the company’s management and the young miners for their care and attention. 

 

Restoration of fish population in Shulbinsk reservoir

Shulbinsk HPP continues its efforts to maintain the ecological balance in the region. The station has once again carried out its annual initiative to restore and sustain the fish resources of the Irtysh River.   

Young carp and common carp were released into the Shulbinsk Reservoir. The release site was chosen in consultation with a scientific organization, which identified the optimal location along the Irtysh River near the village of Azovoye. This area offers favorable conditions for the habitation and reproduction of these fish species, contributing to the strengthening of their population in the reservoir.  

Such initiatives are crucial for maintaining the fish balance, which in turn supports the preservation of the region's ecosystem.  

Samruk-Energy employees continue tradition of participating in "Back to School" campaign

Employees of Samruk-Energy's head office are helping children from large and low-income families prepare for the new school year. As part of the charitable campaign "Back to School," company employees voluntarily raised funds and purchased vouchers for school supplies for students in need.  

Members of the "Jas Energy" Youth Council, along with Samruk-Energy Ombudsman Nariman Akylov, visited the "Zhasnur" Association of the Deaf, where they presented the children with vouchers and treats, wishing them success in the upcoming school year. Parents expressed their gratitude to Samruk-Energy employees for their care and attention. 

It's worth noting that Samruk-Energy employees actively participate in the nationwide "Back to School" charity campaign every year. Through the efforts of the company's management, employees, and local trade union, ongoing support is provided to large and low-income families. 

 

 

Enhancing employee welfare conditions at Samruk-Energy group of companies

As part of the ongoing commitment to provide comfortable and safe working conditions, the subsidiaries of Samruk-Energy” JSC are implementing a program aimed at the continuous improvement of employee welfare facilities. 

At Ekibastuz SDPP-1, a series of key upgrades have been completed as part of this program:  

  1. Drinking fountains upgrade: Twelve modern drinking fountains have been installed in the turbine hall, boiler workshops, and other production areas. These fountains feature a three-stage water filtration system. Additionally, a new 900-meter water supply system has been installed, ensuring uninterrupted operation and improved drinking water quality. This upgrade is a significant step toward better working conditions, as clean drinking water is essential for employee health and well-being.
  1. Restroom renovation: The main production building is undergoing restroom renovations. Warm, modular toilets made from vandal-resistant materials are replacing outdated outdoor facilities. These new toilets are designed to withstand external mechanical damage, maintaining their aesthetic appearance even with frequent use in harsh climatic conditions.
  1. Cafeteria modernization: The cafeteria at Ekibastuz SDPP-1 has been modernized with new cooking equipment and a ventilation system to ensure proper air circulation. A second checkout counter has been added, and additional staff have been hired to speed up service. The menu has been expanded to include a more varied and balanced selection of meals.

Currently, technical assessments are being carried out on other welfare facilities at SDPP-1, including showers, break rooms, and locker rooms. The purpose of these assessments is to evaluate the current conditions and identify further improvements needed to enhance employee comfort and safety in the workplace.  

Similar assessments of employee welfare conditions are also being conducted at Ekibastuz SDPP-2 and Almaty Power Plants. 

 

Scheduled overhaul of hydroelectric unit is underway at Ust-Kamenogorsk HPP

Unit No. 2 at the Ust-Kamenogorsk HPP  is undergoing a scheduled major overhaul. This work is focused on enhancing the reliability and safety of key equipment. 

As part of the overhaul, both the hydro generator and turbine are being repaired. The rotor will undergo hot re-wedging, and the main components of the generator will be refurbished. 

The turbine repair includes the replacement of the centralized lubrication system and repairs to the main metal structures of the turbine. 

In addition to these repairs, equipment upgrades are planned during the overhaul. These include the enhancement of the vibration monitoring system and the implementation of a software and hardware complex for thermal control. These improvements will allow for more precise monitoring of the unit's condition and the temperature regimes of the equipment. 

 

 

 

Occupational safety meeting at Samruk-Energy

A meeting chaired by Kairat Maxutov, Head of Samruk-Energy, reviewed the occupational safety performance of its subsidiaries for the first half of 2024. Reports from chief executive officers of Bogatyr Komir LLP, Ekibastuz SDPP-1, Ekibastuz SDPP-2, and APP were presented, focusing on current safety issues. 

Samruk-Energy’s subsidiaries are actively working to prevent workplace accidents. For instance, Ekibastuz SDPP-1 has installed video surveillance monitors in the operators' cabins and is procuring body сcameras to enhance worker safety. 

Bogatyr Komir has implemented electronic medical examination systems and is deploying the automated "OKO" system to prevent accidents and emergencies caused by human factors. 

The meeting highlighted the goal of achieving zero workplace injuries and improving the safety culture among employees. Ongoing educational initiatives will continue to emphasize the use of STOP-cards, which allow employees to halt unsafe work or refuse to perform it. 

Following the meeting, Kairat Maxutov issued several specific directives to reinforce labor safety measures across subsidiaries and affiliates.  

 

 

 

Continuous improvement system implemented at Almaty CHP-3

The Production department at Almaty CHP-3 is implementing the Kaizen system, a lean technology approach. Kaizen is a concept of continuous improvement that involves gradual changes and innovations in work processes. It helps to increase efficiency, optimize production, and enhance productivity. 

"Employees in the pilot areas have undergone training in the basics of Kaizen technologies and are successfully applying them in organizing workspaces using the 5S methodology, mapping business processes, and addressing current issues," said Nurlan Zhakhan, an electrician at the CHPP-3 electrical workshop. 

The experience of transitioning to this concept's principles is already yielding positive results. Teamwork, brainstorming groups, and an idea bank for improving production activities are motivating employees to embrace innovation and efficiency.