Russia agrees to backup Kazakhstan’s energy system

The Ministry of Energy of Kazakhstan has signed a contract with the Russian energy company Inter RAO about the scheduled supply of energy. The contract guarantees that Kazakhstan can purchase energy from Russia whenever it’s needed.

According to the ministry, the mechanism of centralized purchase and sale of electricity through the Unified Power Purchaser, which has operated in Kazakhstan since July 1, 2023, hasn’t yet prevented bulk customers from applying for more energy than they really use.

«All this data is available when we are forming a schedule for energy generation based on the capacity of our domestic power plants and the electricity we have to import from Russia,» the agency said.

By now, Kazakhstan’s energy system is closely connected with the Russian one, which guarantees the two systems are robust and operate smoothly.

The energy officials now want the bulk customers to be more careful when they are preparing forecasts for energy consumption. Otherwise, it could cause a tariff increase for the end users. Because of the shortage of electricity, Kazakhstan has to buy energy from abroad. Often, it is more expensive than the energy produced within the country.

In early July, Kazakhstan authorities introduced the system of centralized purchase and sale of energy or the Unified Power Purchaser represented by the Financial Settlement Center for Renewable Energy Sources Support under the Ministry of Energy. This center purchases electricity from big power plants and then sells it to bulk consumers. By introducing the new model of energy distribution, the government wants to get rid of energy shortages and upgrade the relevant infrastructure. In 2025, the unified market for electricity is expected to begin operations in the country. Currently, there are three different zones: the Western, Southern and Northern zone.

On the other hand, the national power grid company KEGOC introduced new tariffs for the period from 2022 to 2026. The company also announced two new services: the transfer of electricity and the usage of the national power grid. Over the period from 2023 to 2026, the tariff for the transfer of energy is going to increase from $0.0065 per kilowatt hour to $0.0081 per kilowatt hour (+21.4%).

Moreover, consumers are expected to pay for the usage of the national power grid over the next three years from $0.0038 per kilowatt hour to $0.0045 per kilowatt hour. The dispatcher services will also get slightly more expensive: $0.00078 per kilowatt hour instead of $0.00072 per kilowatt hour. The services related to balancing energy production and consumption are going to cost $0.00015 per kilowatt hour by 2026 instead of $0.00013 per kilowatt hour now.

In early July, Minister of Energy Alibek Kuantyrov warned that electricity bills are going to increase by 20% to 30% due to the need to upgrade the infrastructure and thermal power plants and to raise salaries for those who work in the industry. Public entities are going to take the vast majority of these expenses, as they pay for energy way more than industrial consumers or individuals.