Head of Kazakh Holding Details Measures to Improve Electricity Supplies
Reporter Aleksandr Talanov interviews the head of the state holding Samruk-Energo, Yerlan Upushev, about the current situation of electricity production in Kazakhstan, shortage of power in the south of the country, and the measures the company takes to solve the problems. The following is an excerpt from Upeshev’s interview published by the Kazakh newspaper Megapolis on 29 September:
The situation in the energy sector of Kazakhstan worries many people now. The situation regarding energy supplies is especially hard in the south of the country. It is clear that technological modernization and efficient management are the only way out of the energy problem. These factors should take energy companies of the country to the vector of stable development. The chairman of the board of [the state holding] Samruk-Energo, Yerlan Upushev, talks about what is going on today and what measures are being planned for the future.
The Samruk-Energo joint-stock company was set up in May 2007 to consolidate energy assets in the structure of the Samruk holding, to optimize corporate management and to draw up and implement programmes for the modernization and construction of energy generation facilities in Kazakhstan. Samruk runs such major power stations as Ekibastuz GRES [State District Power Plant], Zhambyl GRES, Bukhtarmin GRES, Shulba GRES, Ust-Kamenogorsk GES [hydroelectric power plant], Shardara GES and the complex of Almaty hydroelectric power stations. The projects for the construction of Moynak GES and Balkhash TES [thermal power plant] in Almaty Region are under way.
[Reporter Aleksandr Talanov:] Yerlan Yelemesovich [Upushev], could you tell us in a couple of words how things are standing today?
[Passage omitted: Kazakhstan was one of the strongest links of the unified energy system of the former Soviet Union]
[Yerlan Upushev:] The existing energy capacities can no longer fully satisfy the rapidly growing energy consumption. As a result, there is a shortage in electricity, especially in the country’s southern regions. This, in turn, hinders the implementation of large- scale economic projects. The strategically important sector needs to be taken out of the protracted crisis.
[Reporter Aleksandr Talanov:] And here, as I understand, the key role is given to Samruk-Energo, is not it?
[Yerlan Upushev:] The state cannot simply stay on the sidelines if we want to take the sector out of the crisis. And the consolidation of state energy assets in the hands of a unified management structure is indeed a must. Now Samruk-Energo faces the specific objective of increasing the sector’s production and, most importantly, investment potential.
[Passage omitted: Samruk-Energo wants to improve the state management of energy resources and coordinate the state policy in this field]
[Reporter Aleksandr Talanov:] Today the most acute problem of the energy sector is [power supplies in] southern Kazakhstan. Can you explain us why there is such a great shortage of electricity in the region?
[Yerlan Upushev:] The industrial and economic development of the south of the country, in particular of Almaty Region, is going faster than it was predicted earlier. There is simply a shortage of power generation and transmission facilities in the region. As a result, the number of disruptions in electricity supplies is increasing.
[Passage omitted: the region needs new power stations and power transmission lines]
Another reason for the shortage of electricity in the south is the instability of power supplies from abroad. It is nobody’s secret that we have to buy the deficient amount of electricity from our southern neighbours Kyrgyzstan and Tajikistan. The fact that the use of water resources in Central Asia is still unregulated is the reason for the instability [of power supplies]. For many years Central Asian countries have been upsetting the water and energy balance and using water irrationally. All this has led to technological disruptions in the work of local hydroelectric power stations. As a result, there is now an energy crisis in Kyrgyzstan and Kazakhstan. Obviously, the difficult energy situation in the neighbouring countries adversely affects the problem of energy shortage in the south of our country.
[Reporter Aleksandr Talanov:] What measures are you taking now to find a way out of the crisis?
[Yerlan Upushev:] The problem of energy shortage can be resolved conceptually only through the implementation of a programme for the technological modernization and via the introduction of modern principles of management in energy enterprises. Modernization envisages the introduction of new power generation facilities and the reconstruction of existing ones. We are taking an active part in this process. When Balkhash TES as well as Moynak GES are commissioned in the future, the third unit of Ekibastuz GRES-2 is constructed and the Almaty power stations are expanded, the necessary amount of energy supplies in the southern region will be ensured. At the same time, we clearly understand that commissioning new power stations that are capable of significantly influencing the balance of energy production and consumption is possible no sooner than 2011-2013.
[Passage omitted: Talanov says management in the energy sector is improving]
One area in the work of the energy sector concerns uncovering cases of illegal electricity use. Currently the indicator of non- normative loses or, to put it simply, theft reaches 20 per cent in Almaty. If we manage to reduce this figure, the deficit [of electricity] will decrease.
The second area is the systemic increase of transformer capacities. It is necessary to regularly replace old and worn-out substations and build new ones. Today there are over 200 substations, which have the capacities of 35 kW and above, on the balance of the APK [state electricity supplying company]. Most of them have been working for 30 years. Definitely this affects the efficiency of electricity supply networks. The equipment of the power supply network of the APK joint-stock company belongs to the technology of the 1950-60s, and by now it has become not only physically but also morally obsolete.
[Passage omitted: Talanov says his company is trying to attract more investment to modernize and upgrade electric power facilities and enterprises; he says over 500m dollars are need for this purpose; he also notes the need to review current electricity tariffs]
We believe there are several ways of taking the Kazakh electricity sector to the path of stable and steady development. The first one is the introduction of mechanisms for attracting investments, including private ones, to the energy infrastructure. The second one is drawing up and introducing a balanced tariff policy that takes into account the interests of the state, society and energy enterprises. And the third one is the advancement of energy-saving technologies at enterprises and at people’s homes.
A long-term tariff policy, which envisages predicted growth in electricity prices in the long-term future as well as the high level of transparency and openness of energy companies in terms of their production activities, can serve as a guarantee that energy facilities will be attractive for investors.
[Passage omitted: Yerlan Upushev says work is under way to diversify activities and open new opportunities to increase the company's export potential]
Originally published by Megapolis, Almaty, in Russian 29 Sep 08p3.
(c) 2008 BBC Monitoring Central Asia. Provided by ProQuest LLC. All rights Reserved.