Integrated annual report | Samruk-Energy JSC

Message of the Chairman of “Samruk-Energy” JSC Board of Directors

Alik Serikovich Aidarbayev
The Chairman of “Samruk-Energy” JSC Board of Directors

Dear readers!

The past decade is a good opportunity to look back and to recap the outcomes since “Samruk-Energy” JSC establishment. This time has become a stage of dynamic development, retrofit and construction of new unique facilities of electric power infrastructure that provides new opportunities for growth of Kazakhstani economy. For 10 years, the Company’s positions have improved considerably – today “Samruk-Energy“ JSC is a large energy holding company of country value. The share of electricity production is 28% and 36% in coal mining across Kazakhstan. The projects implemented with the support of the Government and the shareholder provided the necessary capacity reserve for the country’s social and economic development, created a reliable basis for achieving goal set - ensuring reliable supplies of energy resources, and become a competitive electricity holding company of Eurasian importance.

Operating results and projects in the area of construction and retrofit of key electric power infrastructure facilities that “Samruk-Energy” JSC has successfully implemented, reaffirms the correctness of the decision made 10 years ago.

Construction of 300 MW Moynak HPP completed in 2012 was a landmark event for the Kazakhstan’s power sector. A unique and complex project became a kind of gift to the 20th anniversary of the independence of the Republic of Kazakhstan. Along with the rehabilitation of traditional heat sources, “Samruk-Energy” JSC implemented industrial projects for development of renewable power generation – Kapchagai SPP and the Ereymentau wind farm. Today they provide 1/3 of Kazakhstan’s clean energy production.

The priority task at the initial stage of the Company’s establishment was upgrading of generating and grid assets of Almaty energy complex, which were in an obsolete condition after the period of foreign investors’ management. Taking into consideration that Almaty qualified for hosting 2011 Asian Games, the holding of a major international sport event placed additional responsibility on power sector. Owing to implementation of major projects for construction of new lines and substations, reconstruction of Almaty CHP, the reliability of power supply has improved, and business development opportunities have been created – the reserves of transformer capacity are now sufficient for a decade ahead.

The Company strengthened its position in the energy market due to implementation of investment projects, gaining experience and development of corporate governance. During this time, activities of the Board of Directors and the adoption of key decisions were aimed at increasing the company’s share in the generation sector. State equity stakes in “Bogatyr Komir” LLP, “Ekibastuz SDPP-1 named after Bulat Nurzhanov” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Aktobe CHP” JSC, “Zhambyl SDPP named after T.I. Baturov” JSC, “Alatau Zharyk Company” JSC, “Almaty Power Plants” JSC, “Shardarinsk HPP” JSC were transferred to “Samruk-Energy” JSC. The deal on acquisition of remaining 50% equity stake in “Ekibastuz SDPP-1” LLP completed in 2014, allowed the state to regain control over the largest power plant of national importance. By this time, two 500 MW power units were commissioned, which increased the available capacity of ESDPP-1 to 3,500 MW.

Development of green energy and reducing the impact on the environment remains to be the Company’s priority. Strengthening of requirements on the part of investors, the state and the public promotes this in addition to global trends. The implemented projects on retrofit of facilities have reduced ash emissions several times, which significantly improved the environment. For instance, sharing the concern of citizens, Almaty CHP-1 located in downtown switched to gas from coal. On the instruction of the head of state, at present, the issue of reducing the atmospheric pollution of a megacity by energy enterprises is considered in liaison with the shareholder. 

In view of a dominating role of coal and thermal power plants in the country’s economy, “Samruk-Energy“ JSC continues searching for the best possible option for the energy trilemma – economic accessibility, environmental sustainability and reliable electricity supply to consumers. With this object in mind, we decided to adjust the Company’s long-term development strategy in 2017 relying on the best international practice in the field of sustainable development and the analysis of the external environment. It involves an increase in the share of renewable energy sources in capacities structure, an emphasis on building a customer-oriented, competitive operating holding company in generation sector.

“Samruk-Energy” JSC team faces a challenging task: to meet the growing needs of Kazakhstan’s economy in electricity under conditions of constantly changing paradigms, emergence of new challenges. Assessing the capacity and scope of the work performed, I am convinced that the company will confidently achieve its goals.