Fuel and Energy Development Concept 2030
This document establishes the overarching policy for the development of the oil and gas, coal, nuclear and electric power industries into a single whole, taking into account the best international experience and the latest trends in the development of world energy. It was adopted on June 28th 2014 and amended on June 2020. The concept includes projected (until 2030) volumes of production and consumption of electricity, oil and coal.
Concept presents three possible scenarios for the development of the electricity industry:
- The first scenario: maintaining the role of traditional energy (coal-based),
- The second scenario: the "balanced" development of traditional and alternative energy, the achievement of targets for the development of environmentally friendly technologies,
- The third scenario: advanced development of alternative energy, no new traditional energy sources (coal-based).
In the baseline scenario, structure of the installed capacity of generating sources by 2030 is as follows:
- coal - 55%;
- gas - 25%;
- renewable energy, including hydroelectric power plants - 20%.
Under the baseline scenario, the estimated installed capacity of energy sources by 2030 will be 27,583 MW, and the available capacity will be 23,839 MW.
The concept identifies a variety of actions including:
- to improve legislative mechanisms for attracting investments in the sectors of production and transmission of electric energy;
- to form a single authorised body responsible for policy in the areas of electricity and heat supply, including the approval of tariffs for regulated services;
- ensuring transparency of the activities of the subjects of the electricity market and the system for setting tariffs for electricity and heat;
- introduction of digital technologies by energy enterprises;
- the local executive body will need to implement projects in the areas of electricity and heat supply exclusively in accordance with the long-term schemes of electricity and heat supply of the relevant administrative-territorial units;
- development of the institutional framework for the electric power industry;
- stimulating energy-producing organisations to reconstruct and modernise the main and auxiliary equipment;
- introduce state regulation of the cost of coal and tariffs for rail transportation of energy fuel, as well as mechanisms to stimulate energy-producing organizations to introduce the best available technologies and flexible power plants.
- at the legislative level, target indicators have been fixed to reduce the level of wear and tear and technological losses in the transmission of electric energy as part of the approval of investment programs of energy transmission organisations;
- continued work on the merger of energy transmission organizations, as well as additional legislative initiatives to stimulate their merger;
- separate Law of the Republic of Kazakhstan “On Heat Supply” and related regulatory legal acts were adopted, providing for the introduction of mechanisms that stimulate the attraction of investments in the heat supply sector, including a system for setting tariffs for the transmission of heat energy.
The concept also identifies several actions to increase the development and use of coalbed methane and associated gas. The concept sets a goal for generating 10% of electricity from coalbed methane, in order to ensure the continued development of the coal industry. Thus, the state will pursue the development of local electric power based on coalbed methane. In the gas industry, one of the goals is to develop technologies and infrastructure for processing associated petroleum gas, infrastructure for the use of liquefied natural gas, as well as providing gas transportation infrastructure to the regions of Northern Kazakhstan.
Want to know more about this policy ? Learn more (Russian)