Kazakhstan pays more for electricity from Russia than it sells there

The cost per kilowatt-hour (kWh) of electricity that Kazakhstan purchased from Russia between January and May was 7.64 cents, according to customs data.

During the period, Kazakhstan imported 1.03 billion kWh of electricity from Russia worth $78.8 million (7.64 cents per kWh). Kazakhstan exported nearly the same volume — 1 billion kWh — to Russia but earned only $19 million (1.89 cents per kWh).

The large price imbalance may be due to Kazakhstan’s traditional deficit of electricity during evening peak hours, when prices are highest, while surplus electricity is exported during low-price periods.

In addition, between January and May, Kazakhstan exported 415.7 million kWh worth $12.1 million (2.9 cents per kWh) to Kyrgyzstan and imported 3.3 million kWh worth $122,700 (3.7 cents per kWh) from the country.

Kazakhstan has once again faced an electricity deficit. Total electricity generation in the country from the beginning of the year until Aug. 5 was 73.2 billion kWh, while consumption over the same period amounted to 73.4 billion kWh, marking a deficit of 249.4 million kWh.