Kazakhstan, Astana, 19 March / Trend, K. Konirova /
Over one trillion tenge (6.641 billion) will be invested in the energy sector of Kazakhstan between 2009 and 2015 under the investment agreements, Deputy Prime Minister of Kazakhstan, Minister of Industry and New Technologies Asset Isekeshev told Trend.
"The total input capacity under investment obligations mechanism, the so-called "maximum rates" of existing plants should reach more than 3,700 megawatts, and with consideration of the backlog and subsequent input in 2016-2017 - 4700 MW. These figures are comparable to the "best times of power industry" when it was developing rapidly," Issekeshev said.
According to him, as a result of the new pricing mechanism, the total investment in the rehabilitation, reconstruction and modernization of power generation capacity in 2009-2012 was 514, 6 billion tenge. 1250 megawatts were introduced under maximum tariffs.
"For a clearer picture of the progress made in recent years in the energy industry, here is a comparison: the increase in 1250 megawatts is equivalent to construction of such a large station as Balkhash Thermal Power Plant," the deputy prime minister said.
He reminded that most power plants were put into operation in Kazakhstan 40-50 years ago and have been in a state of considerable wear and tear. Substantial investments have not been made for a long time to renew and restore the productive resources.
According to him, such a state of power facilities in Kazakhstan not only did not provide economic growth, but did not guarantee the stability of the power supply to life-support systems in the country and the economy as a whole.
"Therefore, in the period of growth of electricity consumption in 2006-2008, there have been limitations in the power supply and connection to the grid," Issekeshev said.
According to the vice-premier, this situation was caused by a lack of funds to repair the equipment and put into operation new facilities. Electricity prices were not corresponding to necessary amount of investments in the sector.
He recalled that due to critical deterioration of power equipment, a new pricing mechanism for power plants was introduced in 2009, which was designed to create the conditions to attract investment in power generation capacities.
In his view, it was a necessary step to address the problems accumulated in the industry for decades.
The"Tariffs in return for investment" mechanism laid the basis of calculation of maximum tariffs," the deputy prime minister said.
The inadequate regulatory base of the industry also had a negative impact on technical condition of power facilities. For comparison, during the Soviet era there were 1300 legal acts regulating the energy industry.
In general, according to Deputy Prime Minister, over 150 legal acts have been developed over the last three years. Among them is the Law "On Energy Saving". In addition, the law 'On RES' in the new edition was presented to the Parliament and a law on energy control is under development.
"With tighter energy control, the number of process failures reduced by 10 percent, injuries - by six percent and mortality rate - by 43 percent. These are significant numbers for us," Issekeshev said.
The Law of the Republic of Kazakhstan "On amendments and additions to some legislative acts of the Republic of Kazakhstan on the power industry, investment activities of natural monopolies and regulated markets" was adopted in 2012 to address the issue of industry's development and create favorable conditions for attracting investments.
Adoption of this law led to strengthening the requirements for operation and reliability of power supply as well as responsibility of energy producing organizations in terms of implementation of investment agreements (defined administrative liability, imposed penalties mechanisms of investment return to customers within the maximum tariffs).