Strategic
Report

About
the Company

Business Model

Capacities

The main asset of the Company is the national power grid (NPG), which at the end of 2021 consisted of 384 overhead power transmission lines (OHTL) of 0.4–1150 kV with a total length of 26,973.228 km (ckt) and 81 electrical substations (SS) of 35–1150 kV with an installed transformer capacity of 38,742.9 MVA. They serve to provide cross-border power flows, to supply power from the power plants, and link regional power companies to large consumers.

Company Structure

The Company’s structure includes 9 Inter-system Electric Networks (MES) branches, and National Dispatch Centre of System Operator (NDC SO), also as a branch of the Company.

KEGOC is the sole shareholder of EnergoInform, a subsidiary.

The mission of Energoinform JSC is to ensure the reliable functioning and efficient development of the information and telecommunications systems in UPS using the global best practices and innovative technologies.

The main activity is the maintenance of KEGOC’s information and telecommunication complex, including: commercial metering system, SCADA, balancing electricity market, information management system, PLC, radio relay links, satellite communication, guaranteed power supply, branch exchange, fibre optic links, fire and security alarm systems and corporate services.

On 30 December 2021, FSC RES LLP is alienated by transferring 100% of the participatory interests owned by KEGOC to the state ownership free of charge.

Geography
of Operations

Development
Strategy

KEGOC’s operations have strategic importance for the development of the entire economy of Kazakhstan and affect the interests of a wide range of stakeholders, and the Company takes this into account when making decisions and building a long-term strategy. The focus of our attention is to be attentive to the interests of the society and ensure outstripping development of the NPG of Kazakhstan, ensure decent working conditions and well-being of people, and care for the environment. This is reflected in KEGOC’s Development Strategy.

The State has assigned to KEGOC the status of the system operator of the UPS of Kazakhstan, which defines the functions of KEGOC to ensure parallel operation with the energy systems of the neighbouring countries, maintain the balance in the energy system, provide system services, and purchase ancillary services from the wholesale electricity market entities, as well as to ensure the transmission of electricity through the NPG of Kazakhstan, provide for its maintenance and operational availability.

Long-Term
Strategic Goals

Goal 1: Ensure reliable operation of the UPS of Kazakhstan, i.e., quality delivery of the functions of the System Operator of the UPS of Kazakhstan; quality maintenance, repair and modernisation of the existing assets; increase the capacity of the NPG of Kazakhstan through construction of new transmission lines and substations; technological development and digitalisation of the business.

Goal 2: Ensure the effective operation of KEGOC through higher efficiency of invested capital and development of new businesses, implementation of KEGOC’s Transformation Programme and development of international cooperation.

Goal 3. Enhance corporate governance and sustainable development through better health and safety management, enhanced corporate governance, human capital development and environmental protection..

The development strategy is available on official website: https://www.kegoc.kz/en/about/strategiya-razvitiya/

KPIs for Goal 1

KPIs for Goal 2

KPIs for Goal 3

Future
Plans

On 21 December 2021, KEGOC’s Board of Directors approved KEGOC Development Strategy for 2022-2031. The Development Strategy is a long-term strategic document, which defines the Company’s Vision and Mission and strategic areas of KEGOC development for the long-term period. The Development Strategy addresses the issues of the long-term sustainable development of the Company such as the global trends of energy transition and integration of renewables, and the emerging medium-term electricity and capacity shortages in Kazakhstan. It also includes the important issues of introduction pf modern innovative and digital technologies, R&D, commitment to ESG principles, and covers processes related to decarbonisation of the economy and ensuring economic growth in the country.

KEGOC expects an increase in electricity consumption and production in the future, which will have a positive impact on the volume of electricity transmission and regulated services provided by the Company.

KEGOC will continue to upgrade and develop its assets to ensure the reliable operation of the UPS of Kazakhstan and enhance its performance KPI, such as grid availability, average interruption time (AIT), electricity not supplied (ENS) and customer satisfaction with system services.

KEGOC’s future sustainable development will be ensured through further improvement of corporate governance and occupational health and safety management system, increasing the Company’s responsibility for environmental protection in accordance with the plans and programmes developed.

Key performance indicators, or KPIs, reflect the achievement of the Company’s strategic goals and objectives, as well as the effectiveness of its operations.