Competition Agency Finds Limited Investment in New Power Facilities
Photo: Freepik.com, ill purposes.
The Agency for the Protection and Development of Competition (APDC) summed up the results of its analysis of Kazakhstan’s electric power market, introduced in 2019 to attract investment and build new stations, Orda.kz reports.
Over six years, capacity increased by only 129 MW, even though market participants earned more than ₸500 billion. At the same time, 93% of company funds were spent merely on maintaining outdated equipment.
“Only 7% was spent on modernization and construction of new facilities. The depreciation of stations remained at 56%,” the APDC reported.
Specialists calculated that with half a trillion tenge, it would have been possible to build a coal power plant with a capacity of 530 MW or five combined-cycle plants totaling 1,150 MW.
The main reason, they concluded, is the lack of effective oversight over how funds are used. Instead of investing in new facilities, energy companies spent money on debt repayments.
The analysis also revealed problems with competition in the market. In the Northern and Southern energy zones, the dominant position is occupied by the Samruk-Energo JSC group with a share of over 35%. In the Western zone, it is Mangystau Nuclear Power Plant LLP, Atyrau TPP JSC and Qarabatan Utility Solutions LLP with a total share of over 70%. In this regard, the market is recognized as highly concentrated,
the APDC stated.
The market for maintaining the readiness of electric power for operation is officially recognized as a monopoly. At present, it can only be provided by TOO "RFTS po RES."
In 2024, the APDC introduced amendments aimed at ensuring state control over the targeted use of budget funds.
However, in practice, control by the Ministry of Energy is limited to accepting reports. As a result, funds from the provision of services were directed not to maintaining and increasing capacity, but to reducing cash gaps in accounts receivable,
the agency added.
The APDC recommended that the Ministry of Energy tighten oversight of how funds are spent and abandon short-term contracts, leaving only long-term agreements with investors to build new power plants.
Original Author: Zhadra Zhulmukhametova
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