1. Regional Energy Markets Assistance Program Kazakhstan November 8-11, 2010

2. Government regulation in power sector Ministry of Industry and New Technology implementation the government policy; development programs and control over its implementation; international cooperation in the power sector; development and approval of normative legal acts; appointing system operator and market operator; Agency on Regulation of Natural Monopolies regulation of tariffs (prices, charges) on goods and services of natural monopolies in power sector. Agency on Protection of Competition control and regulation of market participant’s activity, protection and coordination of competition development, and protection of consumers rights

3. Generation 71 power plants, including 5 80 % are coal fired, and 12 % are hydro Installed capacity around19,000 MW Available capacity is 14,000 MW 85 % of power generated in the north 33% are in state property

4. Generation 2000 – 54.4 billion kWh 2005 – 66.6 billion kWh 2010 – 84.0 billion kWh 2015 – 97.0 billion kWh

5. New generation Moynak Hydro - 300 MW (2011) Balkhash coal - 2,640 MW(2014-2017) Renewable – 1billion kWh (2014) 2 billion kWh (2020)

6. Transmission The total length of transmission lines 23,327 km, including: 1150 kV – 1,421 km 500 kV – 5,323 km 220 kV – 15,975 km 110 kV – 558 km 35 kV – 42 km 74 substations 9 Interregional Electric Companies

8. Modernizations 1.Kazakhstan Electricity Transmission Rehabilitation 2.Construction of 500 kV Zhitikara-Aktobe in 2008 3.Construction of 500 kV North-South Transit in 2009 4.SCADA 5.ASKUE

9. Distribution 24 distribution electric grid companies (REC) 80% RECs are in private property Above 400,000 km distribution lines

10. Electricity market Electricity market consists of two levels: wholesale and retail market Electricity, capacity, reserves, ancillary KEGOC and KOREM AREM and APC

11. Wholesale electricity market KOREM MINT KEGOC AREM APC Market participants

12. Functional structure of wholesale electricity market market of decentralized trade, 95% market of centralized trade, 5% open non-discriminating access and actual market price simulation of real time balancing market market of system and auxiliary services

13. Regional Cooperation Reduce total installed capacity Reduce reserves: operation and emergency Increase reliability Increase efficiency Decrease price per kWh

14. Achievements in 2006-2008 Promotion of KOREM operation with regional perspectives Regional Forum on reducing losses Regional discussion of customs and energy specialists Development Central Asia Transmission Planning Model

15. Strategy Based on Kazakhstan market development Development of water-energy market Support national reforms Integration with South Asia and Russia North-South Infrastructure