Integrated annual report | Samruk-Energy JSC

Green Energy

“Moynak HPP” JSC

(“Samruk-Energy” JSC – 100 %)

A. Berlibayev
Chairman of the Board

The Moynak HPP is the first high-pressure diversion hydroelectric power plant in Kazakhstan and the highest-pressure hydroelectric power plant in the CIS. Modern technological equipment used at the plant ensures maximum automation and stability of electricity generation process. The water consumption at Moynak HPP for production of 1 MW is 0.246 cubic meters per second and is one of the highest indicators among operating hydroelectric power plants.

Since the beginning of operation, the plant has produced more than 5 billion kilowatt-hours of electricity; the company today is the most highly efficient hydroelectric power plants in Kazakhstan.

The commissioning of Moynak HPP gave a strong impetus to the development of Almaty region, especially to the development of Raimbek region. The construction of HPP transformed the region, gave it new features. The district received an additional source of income, an industrial enterprise and permanent jobs. We do not stop at what we have already achieved. The matter of using part of the Kensu river flow for additional filling of the Bestyubinsk reservoir is studied at present. A feasibility study on “Transfer of a part of Kensu River flow into Bestyubinsk reservoir” was developed. The staff of “Moynak HPP” JSC looks with confidence towards the future. There are great prospects for improving the efficiency of our hydropower plant.

Financial performance

Indicator

Measurement unit

2012

2015

2016

2017

Net income

mln. tenge

–607

–27,619

4,740

3,076

EBITDA

mln. tenge

50

6,905

8,434

9,118

EBITDA Margin

%

12

86

85

84

Results of operating activities

Indicator

Measurement unit

2012

2015

2016

2017

Installed electric capacity

MW

300

300

300

300

Electricity production volume

mln. kWh

503,890

902,766

1,165,535

1,226

Electricity sales volume

mln. kWh

501,365

893,917

1,156,197

1,221

Social indicators

Dynamics of average wage, tenge


“Shardarinsk HPP” JSC

(“Samruk-Energy”JSC – 100 %)

Financial performance

Indicator

Measurement unit

2012

2015

2016

2017

Net income

mln. tenge

961

1,065

1,376

1,706

EBITDA

mln. tenge

1,342

1,190

2,194

2,330

EBITDA Margin

%

68

57

69

68

B.Zhanabaev
Chairman of the Board

”Shardarinsk HPP” JSC was established with the aim of strengthening the coordination of activities on the operation of the water and energy complex of the Naryn-Syr Darya cascade and optimization of energy supply in Southern Kazakhstan. At present, the hydroelectric power plant is a large energy producing organization in the South-Kazakhstan region, which is mainly engaged in production of electricity and its sale.

In order to create favorable conditions for the further growth of electricity production volume and profitability of the Company, at present. “Shardarinsk HPP” JSC is carrying out work on the modernization and reconstruction of existing hydroelectric plant equipment using modern technologies.

The company builds its activities, realizing that the implementation of social policy in the modern world is an economic necessity, and thereby assumes obligations on socially responsible interaction with all stakeholders: the public, the state, business partners and personnel.

“Shardarinsk HPP” JSC intends to continue and is committed to increase the achieved successes and thereby make its significant contribution to the sustainable development of Kazakhstan’s power industry.

Results of operating activities

Indicator

Measurement unit

2012

2015

2016

2017

Installed electric capacity

MW

100

100

100

100

Electricity production volumes

mln. kWh

569.319

465.259

334.042

359.360

Electricity sales volumes

mln. kWh

563.661

460.424

329.352

354.752

The number of commercial consumers

“Energopotok” LLP, “Ontustik –Zharyk” LLP, “Ontustik Zharyk Transit” LLP, “Kazsbytgroup” LLP, “Energosnab XXI” LLP, “Yugenergoimpuls” LLP, “Garant Energo” LLP

Social indicators

Dynamics of average wage, tenge


“Bukhtarminsk HPP” JSC

(“Samruk-Energy” JSC – 90 %)

Bukhtarminsk HPP is located 15 km below the mouth of Bukhtarma river, 350 km from the source of Irtysh River from Zaysan lake. Backwater formed by Bukhtarminsk HPP dam closes natural levels of Zaysan lake by 5–6 meters, forming a reservoir with capacity of 49.6 bcm and surface area – 5,490 sq. km.

The establishment of Bukhtarminsk hydropower plant solves many issues of energy sector, transport and fisheries. The working conditions of water transport after the construction of the hydroelectric power plant have improved dramatically due to the formation of a deep-sea track at a distance of 500 km and the passage of regulated flow through waterworks facility.

Bukhtarminsk HPP is a very cost-efficient hydropower plant both in terms of the specific volume of work and in terms of cost parameters of electricity production.

The installed capacity of the HPP is 675 MW, indefensible output of 2.77 billion kWh. HPP is implementing сoverage of peak loads in the power system of Kazakhstan.

The so-called “hard concrete” was used for the first time in the USSR during the construction ofhydraulic structures of Bukhtarminsk HPP, specially designed technology was used for laying of the concrete. In 2002, samples of concrete were taken from 60 different points and sent for analysis to two independent laboratories. The analysis results showed that the strength of concrete increased in comparison with the period of construction. Also in 2002 Bukhtarminsk dam was recognized as the best in the world, as the quality of concrete exceeds all expected parameters.

Core business: Rental and management of own property, rent of other machinery, equipment and supplies.

Location: the Republic of Kazakhstan, 070825, East-Kazakhstan region, Zyrianovsky district, Serebryansk city, 5, Graftio street


“Ust-Kamenogorsk HPP” JSC

(“Samruk-Energy” JSC – 89.99 %)

More than 40 % of hydropower plants are concentrated in the east of the Republic of Kazakhstan on the Irtysh River. The first of Irtysh cascades is Ust-Kamenogorsk Hydropower Plant. Currently the plant located in the northeast suburb of Ust-Kamenogorsk has four turbines (82.8 MW) with installed capacity of 315 MW. At an average the plant’s long-term output is 1,580 million kWh, and in the low water year – 1,200 million kWh. Ust-Kamenogorsk HPP fulfills all its investment obligations and systematically implements a long-term program for modernization and reconstruction of fixed assets. Implementation of investment programs of Ust-Kamenogorsk HPP is aimed at improving the reliability and safety of operation of the main and auxiliary equipment, complex of hydraulic structures, and also to increase the efficiency of managing the operating modes of hydraulic units with ensuring the optimal choice of operating parameters.

Main product: electricity

Core business: Organizational, managerial and commercial activities.

Location: registered addresses: Ust-Kamenogorsk, Ablaketka village, Location of the executive body Ust-Kamenogorsk city, 27, Kazakhstan str.


“Shulbinsk HPP” JSC

(“Samruk-Energy” JSC – 92.14 %)

“Shulbinsk HPP” JSC is located in the middle reaches of Irtysh River, 70 km upwards of Semey city. Construction of hydropower plant began in 1976, it launched the first hydraulic unit into operation on December 23, 1987, and the last of six hydraulic units was put into operation on December 19, 1994. The capacity of hydropower plant’s facilities is designed to pass under normal headwater level of 240 m maximum flood with a probability of exceeding 1 % – 7.770 m3/s with a maximum headwater level 243 m 0.01 % probability – 8,770 m3/s.

Main product: electricity

Core business: Organizational and management and commercial activity.

Location: Semey c., Shulbinsk vill. (ShHPP), Location of the executive bodies (UKHPP, ShHPP) – Ust-Kamenogorsk, 27, Kazakhstan street


“Energya Semirechya” LLP

(“Samruk-Energy” JSC – 51 %, Zenith Global FLE – 49 %)

In order to implement the tasks approved in “Samruk-Energy” JSC strategy “Energia Semirechya” LLP is implementing the project “Construction of a 60 MW wind power plant with the possible increase in the capacity up to 300 MW in Shelek corridor of Enbekshikazakh district of Almaty region”.

The Partnership was established to provide services for the production and sale of electricity, design and construction of facilities using renewable energy sources.

In the near future, it is planned to complete wind monitoring in the Dhzungar gate as part of the project “Dzungar Gates 72 MW”, as well as the development of the Shelek generation center (implementation of the Agreement between the Company and HYDROCHINA CORPORATION).

At present, “Energia Semirechya” LLP has reached the investment stage of the Project implementation, and sets the tasks to organize the execution of the shareholder program as soon as possible.

The tasks set will enable to reduce energy shortages in the Almaty region, to open new jobs, and to take another step to reduce harmful gas emissions and preserve the environment.


“Tegis Munay” LLP

(“Samruk-Energy” JSC – 100 %)

The purpose of “Tegis Munay” LLP operations is construction of ground infrastructure and provision of necessary facilities at “Pridorozhnoe” field in South Kazakhstan region of the Republic of Kazakhstan, construction of a gas pipeline from “Pridorozhnoe” field to the main gas pipeline Beineu – Bozoy – Shymkent (MGP BBS), production, processing and sales of gas.

By creating safe working conditions, ensuring environmental protection and environmental safety, we actively cooperate with research and design institutes for introduction of energy-efficient technologies at the projected facilities of the field and energy producing parts of the project.

We have to solve many tasks that we hope to fulfill by way of applying advanced technologies and accumulated experience of our employees.


“ Mangyshlak-Munay “ LLP

(LLP “Tegis Munay” – 100 %)

In 2016 the subsidiary organization of “Samruk-Energy” JSC – “Mangyshlak-Munay” LLP successfully completed the exploration stage involving new productive horizons and approved updated geological reserves of natural gas in “Pridorozhnoe” field in the amount of 16,475 mln. cub. meters at the State Reserves Committee of the Republic of Kazakhstan; the increase in hydrocarbon reserves was 125 %, which allowed “Pridorozhnoe” to become one of the largest natural gas fields in Kazakhstan.

2017 marked the signing of the Protocol of direct negotiations with the Ministry of Energy of the Republic of Kazakhstan and obtaining the priority right to sign the contract for gas production.

“Mangyshlak-Munay” LLP primary objective is industrial operation of the field in order to make up for gas shortfall in the region, create new jobs, develop infrastructure increase social assistance and tax deductions to the budget.

By implementing this project, we are responsible to society and the environment, strive to achieve effective results and assessments, without fear of obstacles and challenges of the time.

The mission of “ Mangyshlak-Munay “ is to create constructive work for the sake of progress and prosperity in society. We want our energy to bring light and warmth to people.


“Samruk-Green Energy” LLP

(“Samruk-Energy” JSC – 100 %)

T. Bukenov
Director General

“Samruk-Green Energy” LLP was established to implement renewable energy projects. In 2016, the output amounted to 3,215 thousand kWh, which prevented more than 1,665 tons of CO2 emissions into the atmosphere and provided electricity to more than a thousand families in Kazakhstan.

The partnership pays special attention to the research activities of the company. So, in 2015, experimental research laboratory for RES was established on the basis of 2MW SPP in Kapshagai city, and the main activity of which is testing of renewable energy technologies. Another activity of the laboratory include the testing of photovoltaic modules of the domestic manufacturer “Astana Solar” LLP. Also the unique energy-storage system “Energy Pod” manufactured by the American company “Primus Power” was tested at the premises of 2 MW Kapshagay SPP.

At the moment, the Partnership applies all the necessary conditions for implementation of projects such as 1 MW SPP and 5 MW WPP within the framework of the intergovernmental agreement between the RK and the PRC. The commissioning of these facilities is planned to implement as part of the project “Construction of a 50 MW Solar Power Plant in the vicinity of Kapshagai city”. A positive aspect of implementing this project is the possibility of using the experience of construction and operation of 2 MW SPP in Kapshagai city and the results of RES laboratory activities.

The success of development of RES in the Republic of Kazakhstan directly depends on the level of training of Kazakhstan specialists. In this regard, the Partnership actively cooperates with leading technical universities (AUEC, KazNU, KazNITU, KBTU), within the framework of which students acquire the initial practical experience in the field of “green” energy.

Financial performance

Indicator

Measurement unit

2015

2016

2017

Net income

mln. tenge

–113

–65

–22

EBITDA

mln. tenge

–67

–28

13

EBITDA Margin

%

–62

–25

10

Results of operating activities

Indicator

Measurement unit

2015

2016

2017

Installed electric capacity

MW

2

2

2

Electricity production volume

mln. kWh

3.267

3.228

3.215

Electricity sales volume

mln. kWh

3.154

3.109

3.101

Social indicators

Dynamics of average wage, tenge


“First Wind Power Plant” LLP

(“Samruk-Energy” JSC – 100 %)

M. Izbashanov
Director General

”First Wind Power Plant” LLP is the first large-scale wind farm operating on an industrial scale in the Republic of Kazakhstan.

The company’s wind farm consists of 22 wind turbines working safely for the environment. Since commissioning, the power plant has generated over 400 million kWh of electricity. 100 % of all generated electricity goes to the National Power Grid of Kazakhstan.

According to the company’s calculations, more than 700 million tenge taxes have been paid to the local budget to date. More than 10.1 billion tenge revenue has been generated.

The company plans to expand the generation capacity up to 300 MW by building new generating capacities using renewable energy sources (wind potential) in order to ensure the optimal structure of generating capacities taking into account the reduction in the total consumption of fuel and energy resources, the minimum level of environmental impact on the environment. The implementation of WPP project represents the first step in the introduction of alternative energy that will lead to a reduction in greenhouse gas emissions, as well as an annual electricity output of more than 172 million kWh per year without consumption of hydrocarbon fuel will enable to save at least 100 thousand tons of coal and thereby improve the reliability of electricity supplies in the region.

Financial performance

Indicator

Measurement unit

2011

2015

2016

2017

Net income

mln. tenge

(0.01)

(329.6)

(444.4)

21.2

EBITDA

mln. tenge

(0.01)

1,083.0

2,131. 2

3,420.8

EBITDA Margin

%

-

62

62

78

Results of operating activities

Indicator

Measurement unit

2011

2015

2016

2017

Installed electric capacity

MW

-

45

45

45

Electricity production volume

mln. kWh

-

79.229

151.764

166.384

Electricity sales volume

mln. kWh

-

79.131

151.467

165.973

Social indicators

Dynamics of average wage, tenge


“Ereymentau Wind Power” LLP

(“Samruk-Energy” JSC – 100 %)

“Ereymentau Wind Power” LLP was established on November 24, 2011. The main activity of “Ereymentau Wind Power” LLP is electricity generation using renewable energy sources. Currently, “EWP” LLP is implementing the project “Construction of 50 MW wind power plant in Ereymentau area with possible increase in the capacity up to 300 MW”.

Main product: electricity

Main type of activity: production and sale of electricity using renewable energy sources

Location: the Republic of Kazakhstan, 010000, Astana, Esil district, Kerey street, Zhanibek Khandar No. 12 “A”, 3rd floor


“Kazhydrotechenergo” LLP

(“Samruk-Energy” JSC – 100 %)

In the framework of direction “Social Responsibility” the environmental protection is a priority (implementation of “green economy” strategy), in this connection the acquisition of “Kazhydrotechenergo” LLP is one of “Samruk - Energy” JSC priorities. The Partnership’s activity includes engineering, building facilities using renewable energy sources, independent technical devices and related to them facilities for production of electricity and (or) heat using renewable energy sources (projects – construction of 7 small hydropower plants by Kazhydrotechenergo). “Kazhydrotechenergo” LLP is a company engaged in development of seven small hydropower plants in southern Kazakhstan with total capacity of 108 MW.

Main product: electricity

Core business: production and sale of electricity using renewable energy sources

Location: Almaty c., the Republic of Kazakhstan, 188, Dostyk street, “Kulan” BC, suite 904


“Teploenergomash” LLP

(“Kazhydrotechenergo” LLP – 95 %)

“Teploenergomash” LLP plans to build two power plants on Big Almaty Channel with a total capacity of 12 MW. It is also planned to create a 19–22 HPP cascade on Shelek river of Enbekshikazakh area with total capacity of 60.8 MW (Almaty region).

Participants of “Teploenergomash” LLP are – 95 % “Kazhydrotechenergo” LLP, 5 % – an individual.

Main product: electricity

Core business: generation and sale of electricity using renewable energy sources

Location: the RK, Almaty c., 13, Al-Farabi ave., BC “Nurly Tau”, k, 1V, suite 505