Energy efficiency in Kazakhstan

Almat Kabykenov

Director of the Centre of State energy register

-18%Reducing energy

intensityGDP at the end of

2017 compared to 2008

Source: Committee on

statistics of MNE of RK

Comparison of Kazakhstan's energy intensity with other

countries

toe

in $

10

00

in

20

10

pri

ces

Источник: МЭА 2017 г.

Comparison with CIS countries

Rating Country Energy intensity

77 Azerbaijan 0,24

83 Armenia 0,27

108 Tajikistan 0,34

114 Kazakhstan 0,42

115 Russia 0,43

118 Belarus 0,44

131 Uzbekistan 0,73

-25% reduce energy intensity Of GDP by 2025.

* to the level of 2008.

NATIONAL ENERGY EFFICIENCY TARGETS

3

reduce energy intensity

manufacturing industry by 2019* to the level of 2014

-12,5% Reducing energy intensityOP at the end of 2017 compared to 2014

-7%

0.11

0.18

0.31

0.42

0

0.1

0.2

0.3

0.4

0.5

OECD WORLD Asian country Kazakhstan

THE ENERGY INTENSITY OF GDP OF THE REPUBLIC OF KAZAKHSTAN

Current policy New policy

Energy saving,million toeSavings according to export

prices, million tenge2017 2020 2025 2017 2020 2025

TPES (million тoe) 79,7 88,3 97,0 79,7 87,8 90,3

Coal 36,1 37,9 41,2 36,1 37,7 38,4 6,0 57 102

petroleum 18,3 20,0 25,3 18,3 19,8 23,6 3,6 364 729

Gas 25,3 30,4 30,5 25,3 30,2 28,4 4,4 104 705

GDP billion $ 53 57,7 65,4 53 57,7 65,4

GDP energy intensity % 19,8 18,2 20,8 19,8 18,7 26,3TOTAL 14,0 526 537

0,46 0,42 0,42 0,42 0,42 - 26,3

-20.8

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

100.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Изменение ВВП Изменение ОППТЭ Изменение Энергоемкости ВВП

Reduction Stagnation

Forecast for 2019-2025

4

DYNAMICS OF ENERGY INTENSITY OF GDP REPUBLIC OF KAZAKHSTAN

ИНСТИТУТ РАЗВИТИЯ ЭЛЕКТРОЭНЕРГЕТИКИ И ЭНЕРГОСБЕРЕЖЕНИЯ

KEY INDICATORS AND ACHIEVEMENTS OF SER (5198 subjects)

2342 |Obliged

conduct

Energy audit

50 %Conduct

1179

518Subjects the SER

has developed a

plan of action

Plan of measures

40 %Subjects passed the

report through the AIS

SER

Digitalization

200billion tenge or

0.7 million toe

Saving

TENDENCY OF THE SER LEADS TO INCREASE IN ENERGY CONSUMPTION

2856

17411

1632

5930

710

3277

2017 2018

LE

QQ

PI

26 618

5 198

Not the subjects of the SER - 44%

Population - 8%

The subjects of SER in 2017 consumed 45% of

the country's consumption or 35.8 million toe

loss - 3%

The consumption of the country in 2017. - 79,7 million toe

5

the

nu

mb

er o

f

sub

ject

s o

f th

e S

ER

TENDENCY | STATE ENERGY REGISTRY

469,4 kW×h/t

specific energy consumption per tonne of commercial aluminium (kWh / t)

▪ optimization of technological processes and more

efficient use of production capacities

▪ implementation of ISO 50001 energy

management system

LLP

"Kazzinc"

1019

specific energy consumption per ton of refined lead(kWh/t).

▪ introduction of soft start device on the fan

PU-23 scz UK MK

▪ synchronization of operation of the

exhauster VDC with descoberta

▪ installation of filter separators in the dust

collection Department

366,8 million tenge

98,5 kW×h/t167,4 million tenge

LLP

" Silicate "

29,9

specific energy consumption for the production of one

thousand pieces of brick (kWh / 1000 PCs)

▪ replacement of electric motors with phase rotor on

▪ asynchronous with short-circuited, with installation of

frequency converters

▪ application of variable frequency drives

▪ insulation of non-insulated surfaces of autoclaves

15,03 kW×h / thousand pieces12,9 million tenge

6

14172

JSC

"Zhairemsky

GOK "

59,2

specific energy consumption per ton of iron-manganese concentrate(kWh/t).

▪ automation of control and management of the main

drainage installations of the mine "Ushkatyn-3 "

installation of CRM devices in the electric networks of

the plant

16,6 kW×h/t126,8 million tenge

14641 75,8

1117 44,9

2012 2017

2012 2017

2012 2017

2012 2017

JSC "Kazakhstan

electrolysis plant "

22%

34%9%

3%

EXAMPLES OF COMPLETED PROJECTS

«Attracting strategic investors in the sphere of energy saving throughthe internationally recognized mechanism of energy service contracts»

Their main task: to stimulate the development of private energy servicecompanies to provide a range of services in the field of energy saving withreimbursement of their own expenses and obtaining financial profit from theactually achieved energy savings»

7

1. Reducing the energy intensity of GDP by 25% by 2020

2. Annual budget savings for the purchase of energy resources

3. Annual involvement of at least three internationally recognized companies for the

implementation of ESCO projects

EXPECTED RESULT

59 STEP OF NATIONS PLAN

1 СНИЖЕНИЕ ЭНЕРГОЕМКОСТИ ВВП НА 25% К 2020 ГОДУ

2 THE ANNUAL BUDGET SAVINGS НА FOR THE PURCHASE OF ENERGY

3 THE ANNUAL ASSISTANCE OF AT LEAST 3 INTERNATIONALLY RECOGNIZED COMPANIES FOR IMPLEMENTING PROJECTS ON THE PRINCIPLE OF ESCO

The decrease in the energy intensity of GDP in

2017 was 18% of the level of 2008.

- 9 PPP PROJECTS(Transport tower, Atyrau region(3), Pavlodar, Ekibastuz, Kyzylorda region.(3))

Implemented:

395,0

9 domestic company1 a foreign company(RussianFederation)

3 ATTRACTED A

STRATEGIC

INVESTOR

INVESTORS

ATTRACTED

10 COMPANIES

- WORLD BANK PROJECT«Improving energy efficiency in Kazakhstan(44 subject) 131,0

Ежегодная

экономия(млн. тнг)

526,0

2008 2017

0,51toe/1000$

- 18 %

0,42toe/1000$

- 18 %

2020

0,38toe/1000$

- 25 %

THE REDUCTION OF GDP ENERGY INTENSITY

ИТОГО

8

RESULTS | 59 STEP OF NATIONS PLAN

“AFP” branch of JSC “TNK” “Kazchrome””

KAGAZY RECYCLING

747,10

349,00

2,3

Investment

(million tenge)Saving

(million tenge)payback period

(years)

retrofit of the lighting system

23,76

16,33

1,5

Investment

(million tenge)Saving

(million tenge)payback period

(years)

retrofit of the lighting system

99

ESCO

ESCО

DEPARTMENT OF HCS IN PAVLODAR CITY

TRANSPORT TOWER

modernization of the lighting system

1088,00

142,35

7,6

Investment

(million tenge)Saving

(million tenge)payback period

(years)

54,30

9,35

5,8

Investment

(million tenge)Saving

(million tenge)payback period

(years)

modernization of the lighting system

PPP

PPP

EXAMPLES OF COMPLETED PROJECTS

Address of the Head of state to the people of Kazakhstan

«New development opportunities in the fourth industrial revolution»BASIS

THE CONCEPT INCLUDES

✓ the establishment of the National information-analytical system on the basis of AIS SER

✓ tighter control over the commissioning of new facilities for non-compliance with the energy efficiency class

On coordination in the interested state bodiesSTATUS

▪ the improvement of the energy auditing activities (introduction of

OPS, the introduction of an Express energy audit)

▪ preventive control

▪ appointment of responsible persons at large enterprises

▪ transfer of control functions to the authorized body for power

industry

▪ creation of incentive mechanisms (financial support, tax

benefits)

PRIVATE SECTOR▪ full monitoring of energy consumption (expanding the scope of the

State energy register)

▪ the adoption of measures for strict regulation (strengthening ofresponsibility of heads)

▪ establishment of energy consumption standards

PUBLIC SECTOR

10

AMENDMENTS TO THE EE LAW

GRANT

FUNDS 21,7 million $June 1, 2015 -31 March

2019IMPLEMENTATION

PERIOD

PROJECT IMPLEMENTATION

Implementation of 85 demonstration subprojects ($17.2 million allocated)

44 the subproject is implemented

Installation of more than 4 thousand led street lamps

Improvement of working conditions (training,

maintenance)more than 50 thousand peopleSaving TEC more than 5 thousand toe/ year (more than

$ 1 million / year)

PROJECT BENEFITS

41 subproject in progress

11

WORLD BANK PROJECT«IMPROVING ENERGY EFFICIENCY IN KAZAKHSTAN»

ИНСТИТУТ РАЗВИТИЯ ЭЛЕКТРОЭНЕРГЕТИКИ И ЭНЕРГОСБЕРЕЖЕНИЯ

Example: SSI secondary school № 17, Karaganda

THE AMOUNT OF WORK PERFORMED

Architectural solution Heating and ventilation

Repair seams. Panel joints– 2300 м The installation of ATP – 1 ед.

Window – 965,3 м2

Door – 29,1 м2 Electrical equipment and lighting

Roofing – 1500 м2 Led lights– 902 ед.

12

4,5M

After

kzt5,6M

Before the

modernization

kzt19%

SavingE

ner

gy

cost

s

Bef

ore

the

mod

erni

zatio

nA

fter

TOTAL AMOUNT

OF PROJECTS 12,0 billion tenge

717,0 million tenge

ANNUAL SAVING

PROJECT IMPLEMENTATION

NUMBER OF

PROJECTS 67 PROJECTS

792,82Facilities,directedonsubsidies

Facilities,directedon

warrantymillion tenge million tenge121,52

GRANT

FACILITIES

UNDP3 millin $

13

PROJECT IMPLEMENTATION TOGETHER WITH UNDP AND DAMU

Heating

technologyLighting Boilers

THE DEVELOPMENT OF LOCAL PRODUCTION

1645,52 (million tenge)

Subsidization Guarantee Reimbursement of

expenses123,32944,15 578,05

ECONOMIC EFFECT

[PROFIT PER 1 TENGE OF

INVESTMENTS]tenge+ 0,41

14

REQUESTED STATE SUPPORT FOR ENERGY EFFICIENCY MARKET DEVELOPMENT

1 Analysis and monitoring of 26 thousand subjects SER

2. The development of ESCO (step 59), the implementation of 20 projects, including 5 PPP

3. Implementation of PPP project on lighting together with the Committee of roads

6. Master plan for sustainable energy development with dena and the Ministry of Energy

5. The creation of a sustainable funding mechanism for PPP projects together with the

World Bank (including the creation of an energy saving Fund)

7. Holding International day of energy saving

15

4. The introduction of the draft Law «On energy saving and energy efficiency»

PLANS FOR 2019

Holding of

international forum

National website in

the field of energy

saving

Conduction

seminars'

[WorkShop] in

regions

Information

brochures

Release

tv program

Post

publications

in media

HoldingPress-

briefings

Action plan for the 1st half of 2019

1

ww

w.e

eq.

kz

15

10

30 15 000

Short movies

Billboards'

3*10

2

16

*20 min.

INFORMATIONAL AWARENESS OF ENERGY EFFICIENCY POLICY