The transition to a new model of centralized buying and selling of electricity in the Republic of Kazakhstan was the main topic of discussion at the Coordination Council for the Development of the Energy Industry of the KAZENERGY Association meeting held on May 3, 2023.
The event was attended by experts from the Ministry of Energy of the Republic of Kazakhstan, energy companies and organizations, and members of the Coordination Council of the KAZENERGY Association on matters related to electricity generation, transmission, and consumer energy supply.
Recall that in April 2023, amendments were made to the Law of the Republic of Kazakhstan on Power Industry, regulating the transition to a new target market model, which provides for centralized purchase and sale of electricity, the introduction of a Single Purchaser, and the functioning of a balancing market in real-time from July 1, 2023.
The functions of the Single Purchaser include centralized direct purchase of electricity from power generating organizations in the Republic of Kazakhstan (including renewable energy sources) as well as foreign sources (if necessary to avoid shortages during peak demand hours) and subsequent sale to domestic consumers, energy supplying and energy transmitting organizations, wholesale consumers, and digital miners.
At present, the mechanisms of the new market model are being refined, including the development of subordinate legal acts on the implementation rules of electricity by the Single Purchaser.
The implementation of the new market model involving the Single Purchaser is expected to provide stability and flexibility to the electricity system of the Republic of Kazakhstan, level tariffs between regions, balance tariffs for newly introduced generation sources, and the price of imported electricity during shortages, as well as the current tariffs of existing stations.
Following the organized meeting of the KAZENERGY Coordination Council for the Development of the Energy Sector it was proposed to hold an additional discussion on the issues related to the transition to the new model of the centralized purchase and sale of electric energy that were not included in the agenda. The discussion will involve experts from the Ministry of Energy of the Republic of Kazakhstan and representatives of energy market entities.
