1. Introduction
2. Perspectives for Development of Energy Resources
3. Electric Power Industries in Kazakhstan
4. Efficiency of Electric Power Generation
5. Renewable Energy Resources in Kazakhstan
6. Realization of Energy Efficiency Policies in Kazakhstan


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Introduction

All economic development is associated with increased energy consumption. This report discusses efficiency of energy use from the moment of arrival of the resources at an electric power plant or a boiler house. There are three steps in energy use: supply of primary resources; distribution, and utilization. Each step has different mechanisms and options for improving energy efficiency.

The most significant barriers to energy efficiency in Kazakhstan are a lack of sufficient long-term investments as well as problems with the regulatory framework and energy management. Pricing and tariff policy are also recognized as important factors that either encourage rational use of energy or make it uneconomical.

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Perspectives for Development of Energy Resources

The Republic of Kazakhstan energy possesses substantial energy resources. Kazakhstan is capable not only to provide its own needs for the future, but the country can also export energy resources in considerable quantities. Cumulative production of primary power resources in Kazakhstan was 119.4 million t.c.e. in 1990.

The composition of electric energy generation is shown in Table 4.1. In the same year (1990) 81.02 million t.c.e. or 68 per cent of total production were consumed domestically.

Kazakhstan energy industry's development prospects are bright. It is expected that, in comparison to 1990, oil extraction will increase by 4.5 to 6.5 times in 2030. Domestic gas production will grow by 780 per cent during the same period. Coal production may only be ncreased by 14 to 30 per cent.

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There is a potential of increasing nuclear power production by 3.4 times by the 2020. All in all energy resources production should grow by 250 to 280 per cent over the next 20-30 years. The share of Kazakhstan in the world production of primary energy resources is expected to increase from 1.6 per cent in 1990 to 3.2 per cent in 2020.


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Electric Power Industries in Kazakhstan

Electric power industry of Kazakhstan is characterized by the following:

-	high concentration of electricity generation (up to 4,000 MWh at one electric power plant);
-	location of large plants mostly close to fuel deposits;
-	high share of co-generation of electricity and heat for industrial and community use;
-	insufficient (about 12 per cent) share of hydropower plants;
-	developed network of electricity lines with voltage of 500 and 1,150 kW;
-	system of control relays and safety automatic equipment;
-	unified vertical system of operative supervisory management.

Between 1990 and 1998 there has been a trend of decline in energy production and consumption. In 1990, the electric power deficit in Kazakhstan amounted to 17.3 billion kWh. Energy consumption fell to 57.12 billion kWh in 1997 or 54.5 per cent of 1990 levels. In industry, energy consumption was fell from 54.4 billion kWh in 1990 to 25.48 billion kWh in 1997, in agriculture energy use fell from 7.92 billion kWh to 1.64 billion kWh, in construction from 2.25 billion kWh to 0.31 billion kWh, and in the community use from 7.33 to 6.15 billion kWh. Due to the specific location of electric network and market conditions, Southern and Western regions have been importing power.

In 1997, the maximum annual load was 9,209 MWh, which is a reduction by 2,767 MWh or 23.1 per cent from 1996. Working capacity of the power plants of Kazakhstan during the period of the maximum use was 8,151 MWh. Additional 1,058 MWh were imported from the Russian Feduration and other countries of Central Asia; however, there was also a reserve of 2,433 MWh at the local power plants.

The design of the electric power transmission grid of Kazakhstan is based on the major principles of the energy system of the former USSR with voltage transmissions in 110-220-500-1,150 kW. 1,421.6 km or 8.8 per cent of the lines of voltage 500-220 kW have been in use for 15-25 years. These transmission lines do no longer meet international standards and need renovation. There are also 28 substations with equipment that has been in use for more than 25 years. In 1997 there were 157 accidents. In 1998, 272 accidents have been reported.

The power industry of Kazakhstan is currently undergoing significant changes as a result of transition to market economy. However, in the opinion of the authors the transition does not create objective economic reasons for disintegrating the national or the subregional power grid.

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Efficiency of Electric Power Generation

In the assessment of the authors the efficiency of converting power of the primary sources at different plants in Kazakhstan is generally up to international standards. However, there is a certain potential for a more rational use. For example, several thermal power plants can improve the functioning of the main and supplementary equipment. However this would incur high costs of investments with a long pay back periods (not less than five years). Another effective way of saving energy would be co-generation of electricity and process heat. At small-scale hydropower plants the efficiency of energy use could be improved by introducing equipment that would prevent ice formation on the water supply system, thus allowing all year round functioning of these plants.

Efficiency of the transmission systems in Kazakhstan is not up to the world standards. The major causes of power loss in power distribution are a malfunctioning of switching equipment and deterioration of cable insulation. One of the ways to increase energy efficiency in transmission and distribution is a more optimal route of transporting energy as well as control and management of the quality of transported power. At the moment it is difficult to assess the profitability of investing in the required system improvements.

Some of the projects that would improve energy efficiency of steam transportation could be improvement of thermal insulation, more optimal routes, and the use of excess pressure and temperature for power generation.

Relatively low prices of energy sources, lack of competition and comparatively under-rated actual costs per unit of production resulted in increased use of energy per unit of production at large enterprises. Energy intensity per capita in Kazakhstan is rather high (6,000-7,000 kWh/person). In order to reverse the fore mentioned trends, a national programme on energy efficiency was developed in 1996. The "Law on Energy Efficiency" was adopted in 1997; but there is no tangible impact as yet of the new regulation. There is still no authorized institution or agency that would supervise implementation of energy efficiency projects.

Unfortunately it is not easy to obtain comparable data on energy consumption per unit of production for industrial energy use in Kazakhstan. However, several examples, such as Almaty cotton factory, where energy cost per unit of production is three times higher than in parts of China, demonstrate the prevailing inefficiency in energy use. In heat consuming branches of industry it would also be possible to recycle heat energy.

It has been measured that some of the buildings in Kazakhstan need 15-30 per cent more heat than average buildings with normal insulation. However, this situation is not likely to be improved soon, as it is too costly to change building insulation. What can be done at the moment is installation of double or triple windows or thermal blocks. Regulation of the indoor temperature depending on the outside temperature will also offer options for energy saving. Heat losses in buildings in Kazakhstan are 50-60 per cent higher than heat losses in other developed countries. Large investments requiring of 3-15 years of pay back would be needed to improve efficiency in building energy use.

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Renewable Energy Resources in Kazakhstan

A solar power demonstration project of 100 square meters solar photovoltaic capacity is proposed to be developed in the North-Eastern part of the country. Small-scale hydropower plants are another resource of renewable energy. There are a number of inactive small-scale plants that could be rehabilitated with minimal investments.

Costs of renovating renewable energy plants will depend on the amount of damage. Small-scale hydropower plants can be also built on the premises of the existing facilities or by using water supply systems of industrial enterprises and villages. It is more financially viable to build these plants in places with developed infrastructure.

It is evident that Kazakhstan has a large potential for energy efficiency improvements. However, realization of these measures is impeded by lack of sufficient financial resources and investments. Lack of legal protection of foreign investments is in turn a barrier to the participation of foreign investors. It might be possible to use emission trading as an incentive to implement these programmes. In Kazakhstan a process of deregulation and privatization of heat and electricity generating utilities is currently taking place. By 1998 the majority of electric power plants had been privatized by foreign and local owners. The national power grid and most of the regional energy providing companies remain the state property. It is planned to privatize regional companies, too, by 2002. Rules and regulations for privatization of electric power distribution lines are currently being developed.


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Realization of Energy Efficiency Policies in Kazakhstan

Based on the strategy stipulated in the "Law on Energy Efficiency" adopted in Kazakhstan in 1997, a related working group was created at Almaty Institute of Power Engineering and Communications. The main function of this group is to implement some energy efficiency promotion projects which include the following components:

Module A: Establishment of national energy efficiency centre
Module B: Establishment of training and skills development centre
Module C: Establishment of database and information centre

Implementation of Module A involves the following steps:

Establishment of national energy efficiency centre; Recruitment of skilled personnel; Equipment of the centre with energy efficiency information systems; Auditing demonstrations at selected enterprises; Dissemination of information. .

Implementation of Module B involves the following steps:

Development of a system of personnel training; Training of instructors by foreign specialists in the country and abroad; Promotion of energy efficiency through consultations and seminars. .

Implementation of Module C involves the following steps:

Systematize and analyze existing educational programmes; Prepare publications; Purchase and creation energy efficiency software; Create programmes for distance education.

It is expected that the fore mentioned training facilities and the provision of advisory services will facilitate Kazakhstan's achievement of greater efficiency in energy resources utilization over the next ten years.

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* President, Energy Association Committee, Kazakhstan
** Head of Department, Ministry of Power, Industry and Trade, Kazakhstan
*** Almaty Institute of Power Engineering and Communications, Kazakhstan