Parliament • 19 November, 2018

Annual savings from implementation of energy saving and energy efficiency projects reached 3.5 billion tenge

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November 19 at the Government meeting chaired by the Prime Minister Bakytzhan Sagintayev, issues of increasing energy efficiency and energy saving were considered. Minister for Investments and Development Zhenis Kassymbek and Minister of Energy Kanat Bozumbayev reported on the measures taken.

The Strategic Development Plan of Kazakhstan up to 2020 and the Concept of the Transition to a Green Economy define tasks for reducing the energy consumption of the country’s gross domestic product by at least 25% by 2020 and at least twice by 2050. According to the Ministry for Investments and Development, in late 2017, the energy intensity of the country's GDP has been reduced by 18% since 2008. In 2016, the World Bank assessed state energy regulations in 111 countries around the world. Kazakhstan took the 32nd place in the ranking.

Minister for Investments and Development Zhenis Kassymbek reported that the basis of the modern energy saving system was established in 2012–2015 during the first five-year industrial-innovative development plan.

“A key element of the energy saving system has been created — the State Energy Registry. Today, the registry includes more than 5,000 organizations. In 2016, the ministry launched the digitization of energy efficiency indicators by creating the Automated Information System of the State Energy Registry. In 2018 this system was launched in pilot mode, and 40% of all subjects of the State Energy Registry provided information electronically. In the future, we plan to consolidate this at the legislative level,” said Kassymbek.

The 59th Step of the Nation’s Plan “100 Concrete Cteps” on the Implementation of Five Institutional Reforms secured the involvement of strategic investors in energy conservation through an internationally recognized mechanism of energy service contracts. Thus, work is underway to develop the market for energy services and implement projects for energy saving.

For this, an Energy Efficiency Map was created — a single republican list of projects in the field of energy saving and energy efficiency, ready for implementation through the mechanism of energy service contracts.

“Currently, 68 projects of the map for 15 billion tenge are already being implemented, 12 of which — through the mechanisms of energy service contracts and public-private partnership. Annual savings amount to 3.5 billion tenge, including 6 projects for 660 million tenge. Map’s 76 projects for 72 billion tenge are under development, that is, investors are being sought for them,” said Kassymbek.

To support the implementation of energy service projects, the ministry together with the United Nations Development Program and the Damu Foundation, began to provide financial support in the form of subsidies and project guarantees. Today, 28 projects have already received this support.

At the same time, within the framework of international cooperation, a project for $21.7 million is being implemented jointly with the World Bank. Eighty-five state and socially significant facilities were selected under the project. The project will improve the working and training conditions of more than 50,000 people, and the state will annually save fuel and energy resources and budget. There are also two projects for a total of $10 million with the United Nations Development Program.

Along with this, the ministry annually evaluates energy conservation activities of local executive bodies by such criteria as: performance of indicators and tasks, monitoring of public institutions, energy audits in public organizations, appraisal, switching to efficient lighting sources and others.

Recall that in the Address of the Head of State to the People of Kazakhstan “New Opportunities under the Fourth Industrial Revolution,” it was entrusted to improve the energy efficiency requirements for enterprises. For the execution of the order, a practical analysis of the Law “On Energy Saving and Energy Efficiency” was carried out, and, together with interested parties, a Concept Draft of the relevant Law was developed, which provides for improving existing energy saving mechanisms, changing the regulatory approach to private and public sectors, and developing incentive energy saving measures.

Minister of Energy Kanat Bozumbayev, in turn, reported on the measures taken to improve energy efficiency and energy saving in the fuel and energy sector. According to him, the reduction of energy consumption by improving energy efficiency is carried out by all major enterprises of the fuel and energy complex and shows its results.

“In 2018, the Ministry of Energy reviewed the results of energy audits of 35 energy-producing and 19 energy-transmitting organizations. For these organizations, measures have been identified and consolidated to reduce some expenses by up to 30% on average, including: specific fuel consumption for the supply of electric and thermal energy, expenses for own and business needs; regulatory and technical losses; costs of heat carriers and water supply,” said Bozumbayev.

Meanwhile, the analysis of fuel use at power plants shows a tendency to reduce the specific consumption of equivalent fuel for the generation of electrical and thermal energy. Minister Bozumbayev noted that the work and analysis on the results of energy audit of companies will continue.

Compared to 2013, in 2017 in the Pavlodarenergo power station, the consumption for the supply of electric energy decreased by 6%. The consumption for the sale of thermal energy in comparison with 2013 decreased by 1%. The electrical energy consumption for own needs decreased from 16% in 2013 to 14% in 2017. According to the Eurasian Energy Corporation, the consumption for the supply of electric energy decreased from 362 in 2013 to 351 grams of equivalent fuel per kW / h in 2017.

According to the Ministry of Energy, one of the most effective measures to improve energy efficiency in terms of reducing losses in electrical networks is full coverage of the automated system of commercial metering of electricity. According to Bozumbayev, the investment programs provided for the installation of the system at all levels of electrical power transmission to the final consumer.

“With the coverage of all large energy enterprises of the country, the economic feasibility of energy efficiency measures is being assessed. This analysis is expected to be completed in March 2019, and the recommendations can be used to make changes and additions to the Law on Energy Saving and Energy Efficiency,” said the minister.

Bozumbayev informed that in the KazMunaiGas group of oil-producing companies, the consumption of fuel and energy resources in 2017 decreased by 1% compared to 2016. As a result of more than 80 energy efficiency measures, the total saving of energy resources amounted to 833 thousand GJ, which in natural terms, more than 12 million kW of electricity, 2,000 Gcal of thermal energy, 8 billion m³ of natural gas and 15,000 tons of boiler and furnace fuel.

“Financial cost savings amounted to 410 million tenge. Work continues, until 2021, in the exploration-mining sector of the KazMunayGas group, it is planned to reduce the consumption of energy resources by 4.5 million GJ. I would like to note the multiplicative effect of the modernization of our plants. With the increase in energy efficiency of oil refining after modernization and a significant improvement in the quality of fuel, the energy efficiency of motor vehicles will also increase proportionally. In general, according to modernization results, an energy audit is planned to assess and continue energy efficiency measures at three refineries,” said the minister.

In addition, in the oil transportation system, as a result of the application of optimal regimes and energy saving measures, the specific electricity consumption for oil cargo turnover in 2018 decreased by 11% compared to 2014. At the same time, the volume of turnover increased by 5.9%.

In the system of main gas pipelines, the main energy-saving measures are related to the automation and digitalization of processes, and the management has implemented an energy management system in accordance with the international standard ISO 50001.

“For the KazTransGas group of companies, due to the implementation of energy saving and energy efficiency measures in 2019, gas consumption for own needs and technological losses are expected to decrease by more than 90 million m³ and electricity consumption — by 18 million kW / h, which will achieve savings of up to 125,000 tons of conditional fuel,” Bozumbayev summarized.

Akim of Karaganda region Yerlan Koshanov and acting Deputy Akim of Almaty Almas Madiev reported on the current situation and measures taken to improve energy efficiency and energy saving in the regions.

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