The Kazakh Operator of Electric Power and Capacity Market KOREM JSC Republic of Kazakhstan

Description of the Kazakhstan Electric Power System

Power generation Electric power plants – 56. Total installed capacity - 18981 (MW), including: thermal electric power plants – 15817 (83,3%) gas turbine units – 916 (4,8%) hydro-electric power plants– 2248 (11,9%) Power generation: 2005 г. – 67,6 bil. kW*h 2006 г. - 71, 5 bil. kW*h 2007 г. – 76,4 bil. kW*h

Transmission grid Total length of transmission lines with voltage from 220 kV to 1150 kV is 228 100 km

Total consumption of electric power in Kazakhstan is 71, 8 bil.кW*h Power consumption in 2007 Total consumption of electric power in Kazakhstan is 71, 8 bil.кW*h

in the Electric Power Industry Reforms in the Electric Power Industry

The Stages of Reforms I stage (1994-2000) December 1995 - Law on Electric Power Industry The National Company (voltage from 220 kV to 1150 kV) - “KEGOC” JSC with responsibility of System Operator was established All Electric Power Plants were privatized Regional Electric Network Companies (<220 кV) were established and privatized The Wholesale Power Market began to function, where the free market price on electric power appeared State‘s Refusal of price regulation for Electric Power Plants

The Stages of Reforms II stage (2000 - present) July 2000 – Kazakh Operator of Electric Power and Capacity Market (КОREM JSC) was created June 2004 – new Law on Electric Power Industry was accepted Power Supply Companies were established January 2008 –Balancing Market started work in a simulation routine

The Structure of Wholesale Electric Power Market Bilateral Contract Market Centralized Auction Market Balancing Market System & Ancillary Services Market

Participants of Wholesale Electric Power Market System Operator Market Operator Electric Power Producers (Plants) Electric Network Companies Power Supply Companies Consumers

Information on Centralized Electric Power Market in Kazakhstan

History of KOREM JSC July 10, 2000 – KOREM JSC was created February 18, 2002 - the First Spot Auctions “day ahead” took place in “KOREM” JSC. September 28, 2004 - The First Forward Auctions took place

At the “KOREM” marketplace there are 2 types of auctions: “Day ahead” auctions Forward auctions (medium-term for a week, month and long-term for a quarter, year)

Market Participants 65 members for “day ahead” auctions 116 members for forward auctions

The volumes of Centralized Market in 2007 15% of the Wholesale Electric Power Market Total volumes of deals - 9 508 611 thousand kW*h

The volumes of “day ahead” auctions (thousand kW*h)

The volumes of forward auctions (thousand kW*h)

Future projects “Intra day” auctions Clearing Center Central Asian Power Exchange Financial Derivatives Market

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