Goal 1. Reliable operation of the Unified Power System of Kazakhstan

In 2018, KEGOC had 272 emergency outages in the grid (which is 3% lower than in 2017), including 149 occurrences with successful autoreclosing, and 123 occurrences with unsuccessful autoreclosing. In 2018, the Company recorded and investigated 49 technological disturbances, all 49 are class II failures. There were no class I disturbances or failures. 52 technological disturbances were recorded in 2017, including one disturbance (class I) and 51 minor disturbances (class II). There were no serious failures. The total number of operation disturbances as compared to 2017 decreased by 6%.

In 2018 the Company recorded 33 technical disturbances on power lines which is 67% of the total. Ten of the total number of technical disturbances damaged the transmission line elements.

In 2018 the Company recorded 16 technical disturbances on substations which is 33% of the total. Three of the total number of technical disturbances on substations damaged the primary equipment.

The total undersupply of electricity in 2018 amounted to 274.18 thousand kWh versus 246.7 thousand kWh in 2017. Undersupply of electricity occurred mainly due to technological disturbances related to the impact of acts of nature.

The Company defined SML and WWP indicators to assess the network reliability level. In 2018 SML was 1.11 minutes, and WWP — 98.78% and, according to the results of the benchmarking completed as part of the Company’s Strategy update, conform to the level of reliability indicators of peer system operators of electric power networks.

In order to ensure the reliability of the National Power Grid, increase network capacity and improve energy efficiency, the Company has been systematically implementing the investment programme of funds injections and return for reconstruction, technical re-equipment of the fixed assets, and construction of the new ones.

In 2018 the Company disbursed KZT 42.62 billion (including KZT 7,82 billion of capitalized loan interest) vs. KZT 42.83 billion of the planned capital investments (including KZT 7.98 million of capitalized loan interest). The Company completed 99.5% of the planned amount of work.

In 2018, KEGOC completed the main works under the largest infrastructure project in the power sector — North-East-South 500 kV Electricity Transmission Construction Project, launched in 2014. For four years KEGOC constructed in total 1,773.1 km of lines and three new 500 kV substations: Semey, Aktogai and Taldykorgan. 500 kV Alma SS was extended and rehabilitated, open switchgears were expanded at 1,150 kV Ekibastuzskaya substation, 500 kV Ust-Kamenogorsk substation, and 220 kV Shulbinskaya hydropower plant.

Implementation of this project will make it possible to increase the transmission capacity from the northern power plants to the southern regions of Kazakhstan from 1,450 MW to 2,100 MW. The new transit will also resolve a number of urgent tasks and ensure the energy independence of consumers in the East Kazakhstan region, which so far were supplied by power through the territory of Russia. In addition, it will cover electricity demand of electrified railways and energy-intensive mining facilities. It is also important and timely that the commissioning of this project will give impetus to the development of renewable energy sources, in particular, small hydropower plants.

Since 110-1,150 kV overhead lines being on the Company’s balance sheet with the operating time over 30 years account for 72% of the total length of the overhead lines (19,184 km out of 26,776 km), KEGOC plans to extend the range of modernization works to overcome the tendency of assets for deterioration.

For this purpose, KEGOC plans to implement the rehabilitation of 220-500 kV OHTL at the Company branches, which will cover partial replacement of existing OHTL structural components (towers, conductors, line hardware, etc.). This will significantly increase their lifetime and, as a result, ensure the reliable operation of the Unified Energy System of Kazakhstan.

In 2018, the Management Board of KEGOC approved the implementation of design solutions for the feasibility study on the Rehabilitation of 220-500 kV OHTLs at MES branches with the updated key indicators: cost of KZT 40.7 billion (excluding VAT) and implementation period until 2022 inclusive.

Pilot rehabilitation facilities include twenty-seven 220-500 kV overhead lines, which are on the balance sheet of KEGOC Aktyubinskiye MES branch (seven 220 kV OHTLs), Sarbaiskiye MES branch (nineteen 220-500 kV OHTLs) and Zapadnye MES branch (one 220 kV OHTL).

Pavlodar Electricity Transmission Reinforcement and 220 kV OHTL Tulkubas-Burnoye Construction investment projects with the total cost of KZT 9.4 billion (excluding VAT) are under implementation. In 2018, construction and installation works were performed under the projects, materials and equipment were supplied, foundations were erected, and conductors were installed. Completion of these projects and commissioning of all facilities are envisaged in 2019.

Also, projects on replacement of ground wire with OPGW (Optical Ground Wires) are under implementation at 220-500 kV OHTL Ust-Kamenogorsk — 14 SS, EGRES-1 — Ekibastuzskaya 220, EGRES-1 — Ekibastuzskaya 1150. In addition, construction and installation works are carried out under Severny RDC — Ekibastuzskaya 220 communication line.

The Company has started works on implementing the projects:

• Construction of Uralskaya SS — MGTS communication line;
• Construction of the communication line between Central RDC and the base of Tsentralnye MES branch (cable tie-in from the base of Tsentralnye MES to TETs-3-TsRDC cable);
• Replacement of ground wire at 500 kV OHTL Zhambyl — Shymkent-500;
• Replacement of ground wire at 220 kV OHTL Shymkent-500 — Shymkentskaya-220.

At the same time, in order to diversify the Company’s business and gain additional profit from other activities, work is under way to implement the local project Development of Fibre Optic Communication Lines for Data Transmission.

With regard to capital investments in 2018 the Company fulfilled the disbursement plan (KZT 8.39 billion excluding VAT) by 103.8% (KZT 8.71 billion) to maintain the current level of operations. Disbursement of funds for local investment projects initiated under KEGOC business transformation programme amounted to KZT 2.995 billion (excluding VAT) out of the planned KZT 3.02 billion (99.4%).

In 2019, KEGOC will continue the active implementation of the project Rehabilitation of 220-500 kV OHTLs at MES branches (NPG Rehabilitation), plans to begin the design work on the large West Kazakhstan Electricity Transmission Reinforcement. Construction of Power Grid Facilities Project, and the pre-design work on promising investment projects worth about KZT 317 billion (excluding VAT).

In the modern world, the Company’s technological development is the driver of growth and business development that creates new opportunities and prospects for the Company’s operations.

To fulfil expectations of the major shareholder and actively implement the State Program ‘Digital Kazakhstan’, the KEGOC Business Digitalization Concept was developed. The business digitalization concept in the Company is an addition to the Development Strategy of KEGOC and a fundamental document on the business digitalization specifying the main areas, principles and mechanisms of the digitalization process of all KEGOC activities. The Management Board of KEGOC approved KEGOC Business Digitalization Concept by the decision dated 28 March 2018.

In 2018, KEGOC continued implementing the following projects of technological development included in the State Programme ‘Digital Kazakhstan’ to increase the reliability, manageability and observability of the UPS of Kazakhstan:

• Introduction of the monitoring and control systems based on synchrophasor technologies (WAMS (Wide Area Measurement Systems)/WACS (Wide Area Control Systems).

The Company in partnership with General Electric Company started implementing the first component ‘The monitoring system based on synchrophasor technologies’ (WAMS). The project has installed PMU (Phasor Measurement Unit) at 14 sites and specialized software in a number of dispatch centres. WAMS is planned to be commissioned in H1 2019.

• Introduction of the Centralized Emergency Automation System (CEAS).
• Introduction of the Automatic Load-Frequency Control (ALFC).

The feasibility study of the latter two projects was completed in partnership with Almaty University of Power Engineering and Telecommunications, and Institute of Automation of Energy Systems (Russia, Novosibirsk). Design estimates are planned to be developed in 2019.

The main impact of these projects shall be the higher transmission capacity of the grid without additional grid construction, smaller deviations of power at the border with Russia, and lower level of consumer outages during technological disruptions in the network.

In 2018 the work ‘Feasibility study of corona losses mitigation in Kazakhstan NPG’ with the involvement of NURIS (Nazarbayev University’s scientific subdivision) was completed. The work studied possible ways to reduce corona losses in 500 kV KEGOC’s networks by using technologies to treat the surface of high-voltage overhead transmission line conductors. Following the study results, KEGOC obtained an invention patent.

Also, in 2018 together with ORGRES Engineering Centre (Russia), KEGOC continued a scientific research on mitigation of electric power loss at 500 kV OHTL to determine the causes and develop counteractions that will reduce electric power losses in 500 kV transmission lines of KEGOC that were reported to have high level of losses.

KEGOC’s Scientific and Technical Council (STC) operates on a permanent basis. The STC is a working body of KEGOC established to take decisions on the following issues: develop KEGOC, implement the Development Strategy, develop and arrange for introduction of new methods and technologies in projects for new construction, rehabilitation and technical upgrade of grid facilities, improve the NPG operation modes and develop domestic scientific and production potential. In 2018 the STC held eight meetings.

In addition, the Innovation and Technology Development Committee operates on a permanent basis under the STC at KEGOC. It is a working body that shall review and prepare conclusions on the information proposed for review by the STC, take decisions on rationalisation proposals of the Company’s employees, etc. In 2008 the Committee held six meetings.

Applied technologies and equipment energy efficiency increase, energy-saving programme development and technological power consumption optimization are among the Company’s main objectives.

The technical losses in KEGOC’s networks in 2018 amounted to 2.9 billion kWh or 6.3% of electricity supplied to the grid, not exceeding the standards established by the authorized body for natural monopolies.

In 2018, in accordance with the ITC Strategic Development Plan for 2018–2022, a number of activities were carried out on key areas of technological infrastructure development and digitalization of the electric power industry.