The Energy Minister explained the sources of electricity in Kazakhstan.

The Minister of Energy of Kazakhstan Almasadam Satkaliyev held a meeting with residents of Almaty, where he discussed the progress of preparations for the construction of a nuclear power plant (NPP), the prospects for energy development, and issues related to tariff formation, reports correspondent inbusiness.kz.

NPP Construction: Timelines and Challenges

According to the minister, the process of establishing an NPP is lengthy and complex. Designing the plant can take up to three years, while the construction of the first unit, starting from the pouring of the "first concrete", takes between 8 to 14 years.

“There have been various precedents around the world. It is clear that these timelines are unacceptable for Kazakhstan. We must organize our work in such a way, develop our competencies, to utilize all advanced international experience and conduct detailed work with vendors to provide quality proposals, so that we can soon commence both the design and construction and ordering of equipment. The corresponding directives have been issued. Initially, it was expected that a decision on the final format of the winner of this process would be made next year. Based on the president's instructions, the commission will do everything possible to expedite this work and make the corresponding decision in the near future,” – said the minister.

He noted that the final decision on the choice of technology and supplier will be made in the first half of 2025. Among the contenders for the project implementation are companies from Russia, China, France, and South Korea. The capacity of the future NPP will be up to 2400 MW, which implies the construction of two units with a capacity of 1000-1200 MW each.

According to Almasadam Satkaliyev, the cost of electricity after the construction of the NPP will depend on the technologies used: 2+ generation reactors provide cheaper energy comparable to coal and gas generation, while 3+ generation reactors offer a higher level of safety but come with a higher energy cost.

Carbon Neutrality and Alternative Energy

The minister confirmed that the transition to carbon neutrality remains a priority for Kazakhstan, with nuclear energy viewed as a crucial element in reducing greenhouse gas emissions. He added that by 2032, the country plans to introduce 6.6 GW of capacity through auction mechanisms, including wind, solar, and small hydropower. An additional 5-6 GW of capacity will be introduced as part of large investment projects. According to the minister, project financing will be secured through investor funds and loans, including support from the Development Bank of Kazakhstan, without utilizing the local budget.

Tariffs and Network Connections

Tariff formation issues were also discussed during the meeting. Almasadam Satkaliyev emphasized that wholesale electricity tariffs are approved by the Ministry of Energy, while tariffs for heat and regional network services are set by the committee on regulation of natural monopolies. Tariff increases are typically due to objective factors such as rising salaries in the utility sector and increases in energy prices.

“The approval of tariffs follows the established investment programs and tariff estimates. This means all costs are accounted for. To establish a tariff, a detailed examination of the technical and economic state of companies is conducted. Typically, tariff increases are justified by the applicant themselves. Strict control is maintained over this process. There are many factors contributing to increases, including rising energy prices. As you know, last year we undertook significant efforts to raise the salaries of workers in the utility and energy sectors,” – stated the Minister of Energy.

To connect small and medium-sized businesses to the networks, compliance with technical conditions is mandatory, including the installation of software for monitoring and accounting energy consumption.

The minister stressed that all changes in tariffs undergo strict control and align with approved investment programs.

Almaty CHPP-2: Gas Instead of Coal

According to Almasadam Satkaliyev, the complete transition of CHPP-2 to gas in Almaty is planned to be completed by 2026. As part of the project, a gas-steam unit (GSU) with a capacity of up to 557 MW will be built, which will ensure frequency and power regulation in Kazakhstan's unified energy system. It is noted that the project, with a budget of 388 billion tenge, approved by state expertise, will reduce harmful emissions from 37.3 to 2.7 thousand tons per year.

CHPP-1, which is already operating on gas, is expected to expand with the installation of two gas-steam units with a total capacity of up to 250 MW. The active phase of construction will begin in 2027 after the modernization of CHPP-2 and CHPP-3 is completed.

CHPP-3 will be equipped with gas-steam units with a capacity of up to 450 MW, which, according to the minister, will partially cover the deficit of maneuverable capacities in the southern zone of Kazakhstan.

“Given the fact that the main goal of the gasification of Almaty CHPPs is to improve the environmental situation in the city of Almaty and Almaty region, and that CHPP-1 is already operating on gas, a phased implementation of the project is being considered. The active phase of construction for two GSUs with a total capacity of 225 MW is planned to begin after the completion of the CHPP-2 and CHPP-3 projects in 2027,” – added Satkaliyev.