Year in review: key achievements and future prospects for the energy sector in Kazakhstan.

The energy sector of Kazakhstan is a vital part of the economy. In light of the increasing focus on sustainable development and the global transition to a low-carbon model, Kazakhstan is actively implementing initiatives aimed at ensuring reliable energy supply. As economic activity rises, so does electricity consumption, necessitating the expansion of production capacities. In 2024, the government took significant steps towards balanced development of traditional and renewable energy sources. The country's power enterprises provide stable heat supply for the needs of the industrial and municipal sectors of the republic. A development plan for the sector has been approved, aiming to introduce at least 26 GW of new capacity by 2035, reported IA "NewTimes.kz" citing the press service of the Government of the Republic of Kazakhstan.

Development of Kazakhstan's National Electric Network

As of today, the Unified Power System of Kazakhstan is operating normally. As of January 1, 2024, the total available capacity reached 20.4 GW, with an operational capacity of 15.4 GW. The maximum consumption level in the current heating season reached 16.6 GW, while maximum generation was 15.1 GW.

There are 222 electric stations in Kazakhstan (6 thermal power plants, 41 combined heat and power plants, 14 gas turbine power plants, 7 gas power plants, 6 hydropower plants, and 148 renewable energy sources). Among them, 148 renewable energy facilities (51 small hydropower plants, 54 wind farms, 42 solar power plants, and 1 biogas plant) have a total capacity of 2.9 GW.

In 2024, under the budget program of the Ministry of Energy "Development of Thermal and Electric Power," 58.3 billion tenge was allocated from the republican budget for the implementation of 14 projects (6 for heat supply and 8 for electricity supply). One of the projects, a 110/10 kV substation in the Akzhayik area of Uralsk, has already been put into operation.

Additionally, the annual limit for returnable investments has been increased from 32 billion tenge to 428 billion tenge. This has allowed for an expansion of the pool of projects focused on modernization, expansion, and reconstruction of main equipment for existing energy-producing organizations.

Currently, there are 22 investment agreements with a total capacity of 2.8 GW, of which 13 agreements with a total capacity of 1.36 GW were signed after the limit increase.

In November 2023, the project "Reinforcement of the Electric Network of the Western Zone of the Unified Power System of Kazakhstan" was successfully implemented, which included the construction of a 220 kV power transmission line spanning 780 km along the route "West Kazakhstan Energy Node – Atyrau – Mangystau." This step aims to enhance the capacity and reliability of electricity supply.

As a next step, by the end of 2028, a project will be implemented to connect the electric networks of the Western zone with the Unified Power System, which will involve the construction of a 500 kV power transmission line 604 km long, linking the Aktobe and Atyrau regions. This will enable the use of maneuverable gas power sources in the Western zone to compensate for electricity and capacity imbalances in the Northern and Southern zones. Currently, the design and estimate documentation is being developed, and construction and installation work will begin in 2025.

Enhancing the reliability of energy supply to consumers in the southern regions and reducing the risks of emergency disruptions related to the operational modes of the energy systems of Central Asian countries require strengthening the electric networks in the Southern zone (Shu-Zhambyl-Shymkent). Currently, JSC "KEGOC" has begun implementing this project, the first phase of which will conclude in 2027, during which a 500 kV power line 475 km long will be constructed along the Shu-Zhambyl-Shymkent route. At this time, the design and estimate documentation is being developed.

To further strengthen the connection between the Northern and Southern regions of the country and increase transit potential, the construction of direct current lines "North-South" with a voltage of +/- 500 kV is planned. The capacity will increase by 2,000 MW.

Feasibility studies are being conducted for the construction of a direct current line connecting the western and southern zones of the country, which will allow for the complete loop of the Unified Power System of Kazakhstan.

The implementation of these projects will ensure stable and reliable electricity supply and contribute to the development of Kazakhstan's energy infrastructure, ensuring long-term energy security.

Thermal Generation

This year, the first 500 MW generation unit of new generation has been connected to the Ekibastuz GRES-1, and it is expected that by the end of the year, an additional 65 MW will be brought online at the Atyrau CHP, as well as 130 MW at the Topar GRES in 2025.

Through the reconstruction and expansion of existing electric stations, an additional 5.6 GW will be introduced, of which in 2024 the Ministry signed 13 investment agreements with energy-producing organizations totaling 1.4 GW. Among such projects is the construction of Unit No. 7 at the Aksu GRES with a capacity of 325 MW, the installation of a boiler unit and turbine replacement at the Karaganda CHP-3, and the expansion of the combined cycle unit of "Karabatan Utility Solution" from 310 MW to 620 MW.

This year, plans have been set for the construction of new generation facilities with a total capacity of approximately 9 GW. Currently, these projects are at various stages of implementation.

Within the framework of auction trading for selecting maneuverable generation, the introduction of 2.5 GW of new capacities is planned.

As of today, construction work is underway on four large combined cycle projects with a total capacity of about 1.8 GW being implemented in Turkestan, Kyzylorda regions, Ulytau region, and Almaty, with planned completion dates in 2026.

Additionally, in August 2024, Kazakhstan held another auction with a total capacity of 700 MW, resulting in four winners for the right to implement combined cycle units in Zhambyl, Aktobe, and Atyrau regions. Currently, projects are being implemented, with completion dates set for 2028. The expected investment volume until 2029 is over 8 trillion tenge.

As part of an intergovernmental agreement (MPS), large-scale projects with a capacity of 2 GW are being developed with the participation of strategic investors.

For example, under the signed intergovernmental agreement with Qatar, the construction of a combined cycle unit (CCU) with a capacity of 1100 MW in Kyzylorda region is planned, with completion set for 2029.

Another intergovernmental agreement with Russia aims to build new thermal power plants based on coal generation in the cities of Kokshetau, Semey, and Ust-Kamenogorsk (Kokshetau CHP — 240 MW, Semey — 360 MW, Ust-Kamenogorsk — 360 MW), with planned commissioning dates between 2028 and 2030. These projects will be implemented using "clean" coal technologies and are aimed at replacing the existing coal fleet in northern regions of Kazakhstan, which experience long heating periods and lack gas transport infrastructure.

Adjustment of Maximum Tariffs and Repair of Energy Units

Starting January 1, 2024, the Ministry of Energy adjusted maximum tariffs for electricity for 24 out of 49 energy-producing organizations based on submitted applications.

According to the repair schedule, the System Operator plans capital repairs on 10 energy units, 55 boilers, and 45 turbines at electric stations in 2024. Repairs have already been completed on 9 energy units, 53 boilers, and 40 turbines. Repair work is currently in the final stages on 1 energy unit, 2 boilers, and 5 turbines.

Repairs have been completed on 20.7 km of power transmission lines, 422 substations, and 4,000 transformer substations in the REC networks.

In the heating supply networks, repairs and reconstruction of 542 km planned for this year have been fully completed.

Thanks to the timely conducted work, the heating season was organized without major technological disruptions.

Oil Extraction and Processing

The oil production plan for 2024 is set at 90.3 million tons (100.4% of the 2023 level). As of the end of November this year, oil production amounted to 80.5 million tons, which is 1.8 million tons less than planned (97.8% of the target set at 82.3 million tons).

From January to November 2024, the volume of oil processing in Kazakhstan reached 16.7 million tons, which is 102% of the plan (the plan was 16.4 million tons). It is expected that by the end of 2024, the volume of