Industry news archive

22 November, 2023

The Mazhilis discussed the current situation of the introduction of a Single Electricity Buyer mechanism

3 Photo
3 Photo
3 Photo

The Mazhilis Committee on Ecology and Environmental Management, chaired by Edil Zhanbyrshin, held a thematic meeting «On the current situation on the introduction of a Single electricity buyer mechanism», the press service of the Mazhilis of the Parliament of the Republic of Kazakhstan reports.

Energy Minister Almasadam Satkaliyev reported that since July of this year, models of centralized purchase and sale of electric energy have been launched in real time – a Single buyer and a Balancing market. The first one was the LLP «Settlement and Financial Center for the support of renewable energy sources».

  • During the work, the Single Buyer has already shown a positive result of competitive conditions, namely during surplus hours. That is, during a period of excess electricity in the energy system, power plants with high tariffs reduce the cost of electric energy by up to 10% in order to be able to sell electricity, - the head of the Ministry of Energy said.

Previously, electricity buyers signed contracts directly with power plants. However, this has led to uncompetitive conditions due to the lack of equal access of buyers to cheap electricity.

  • Within the framework of the Single Buyer model, all wholesale electricity consumers purchase only from the Settlement and Financial Center at one weighted average tariff. At the same time, if it is impossible to cover the country's electricity needs at the expense of Kazakhstani energy sources, planned electricity imports are carried out, – Almasadam Satkaliyev said.

According to him, this makes it possible to meet the demand of consumers for electricity in full within the capacity of electric networks. At the same time, the cost of imported electricity is distributed evenly to all wholesale consumers. Planned imports made it possible to minimize deviations in the interstate balance of flows.

In turn, Nabi Aitzhanov, Chairman of the Management Board of JSC «KEGOC», informed that the company had carried out the necessary work to create a hardware and software complex that meets the requirements of the legislation. Today, the Balancing Electricity Market system ensures daily interaction of all market participants on a single platform. The full development of the complex will be completed by the end of July 2024, today its second stage is underway.

He also made proposals on behalf of the company, which relate to changing pricing approaches in a balancing market by eliminating the possibility of buying imbalances below the price of a Single buyer. Another one is to introduce penalties into legislation for entities that are not equipped with an automated commercial electricity metering system.

In continuation of the topic, the General Director of the LLP «Settlement and Financial Center for Support of Renewable Energy Sources» Gulzhan Nalibayeva and the Chairman of the Board of JSC «Kazakhstan Operator of the Electric Energy and Capacity market» Kairat Rakhimov also made reports.

During the meeting, the majilismen and other participants voiced their proposals, as well as asked the speakers questions. Chairman of the relevant committee Edil Zhanbyrshin asked about unresolved systemic problems in the Kazakh electric power industry.

– There remains one rather serious problem that affects all market participants. The law provides for the priority of buying electricity from TPP, which reduces the capacity of the market, there is an underutilization of GTPP, large power plants at night. We have studied the experience of our neighbors and the world. Indeed, the TPP needs to be maintained, they carry a heating regime, but this does not apply to the entire volume of electricity, but to the technological minimum. If we reduce it, the problem will be significantly solved, - Almasadam Satkaliyev replied.

The search for a legislative solution to the problem will continue within the framework of working groups in the Majilis. Today, deputies are working on draft laws on heat and power engineering and amendments on heat and electricity, as well as renewable energy sources.

Photo: Zh.Zhumabekov