Mr. Bakirdin Sartkaziev
General Director
Contact :
326, Jubek-Jolu Str., Bishkek
720070, Kyrgyz Republic
Tel: (996-312) 661001
Fax: (996-312) 661609,
620669
E-mail: aoek@infotel.kg
Presentation
Kyrgyz Republic is rich in power resources. This
is especially true for the hydro energy resources,
which potential is estimated to be 142 billion kWh
per annum by experts, of which only 10 % are used
now.
High reserves of energy resources have created favorable
preconditions for fast development of a power complex
of the Republic, which from the beginning of 1980's
became a huge producer of hydro electricity in the
Central-Asian region. Up to 50% of the cheap and
clean electric power generated here has been delivered
to the United Energy System of Central Asia.
Kyrgyzstan's electric power industry is capable
of meeting the country's domestic electricity needs
while providing surplus electricity for export.
Kyrgyzstan has two major electric power plants -
a 1.2-gigawatt (GW) hydropower plant at Toktogul,
and a 0.76-GW thermal plant at Bishkek, with plans
for a major 6.8-GW hydropower station to be built
by 2010. In 2000, Kyrgyzstan generated 14.7 billion
kilowatt-hours (Bkwh) of electricity, up from 13.0
Bkwh in 1999, while the country consumed only 9.8
Bkwh in 2000.
Kyrgyzstan's abundant water resources give it significant
hydroelectric potential. The energy potential of
Kyrgyzstan's mountain rivers is estimated at 163
Bkwh per year, of which only about 10% is currently
exploited. Hydroelectric energy meets approximately
20% of Kyrgyzstan's primary energy requirements
and accounts for nearly 20% of its total exports.
With rapidly growing energy demand in neighboring
countries, Kyrgyzstan's hydroelectric power potential
is becoming more attractive to foreign investors.
The long-delayed 450-megawatt (MW) Tash Kumyr Hydroelectric
Plant was put into full operation in 2001, and Kyrgyzstan
is working to secure financial resources to construct
two power-generating units at the Kambar-Ata Hydroelectric
Plant.
The Kyrgyz Republic has a real prospect for development
of hydropower construction. On the Naryn river alone,
the existing cascade of hydropower plants consists
of 5 power plants with a total installed capacity
of 2870 MW. It is also possible to construct another
7 cascades including 33 hydropower plants with a
total installed capacity of 6450 MW and annual generation
of more than 22 billion kWh.
Although Kyrgyzstan has excess electricity generation,
up to one-third of the power that the country generates
is lost due to Kyrgyzstan's deteriorating power
infrastructure. A lack of transmission-related equipment
and inadequate pricing and cost recovery have contributed
to problems in the power sector. The Kyrgyz government
allowed Kyrgyzenergo to raise electricity tariffs
in March 2002 in an effort to recoup generation
costs, but already more than half of residents in
the Kyrgyz capital are not able to pay because of
previous rate increases.
Since the country's major hydroelectric power stations
are located in the south, the north of the country
typically depends on supplies of Kazakh electricity
in the winter. After Kazakhstan withdrew from the
Central Asian power grid in early 2002, northern
Kyrgyz districts were left with insufficient electricity,
prompting Kyrgyz government official to ask residents
in the north to conserve electricity.
Besides the irregular natural gas supplies from
Uzbekistan, Kazakhstan's decision to leave the regional
power grid has given Kyrgyzstan additional incentive
to shore up its power system. Kyrgyzstan already
has embarked on a program to make the country self-sufficient
in energy by 2005, seeking to increase its electric
installed capacity and to modernize its distribution
system. Kyrgyzstan has borrowed money from international
development banks to build substations, the Alai-Batken,
Kemin-Naryn, and Naryn-Torugart power lines, to
rehabilitate/reconstruct heat and power grids and
the Bishkek heat and power plant, and to buy equipment.
In 2001, Kyrgyzstan embarked on a restructuring
of Kyrgyzenergo, splitting off the company's distribution
networks and leaving the former monopoly as just
an electricity generating company. In July 2001,
the Kyrgyz parliament approved a government restructuring
plan for Kyrgyzenergo, the state electricity company,
which is aimed at preparing the company for privatization
this year. The plan calls for the company to be
divided into eight independent divisions. However,
the new companies are still saddled by their own
debts to Kyrgyzenergo and by consumers' failure
to pay their electricity bills. Kyrgyzstan plans
to privatize these regional electricity distribution
companies as the next step in the reform process.
History
of "National electric grid "
Nowadays, the energy sector is divided into three
function-wise blocks divisions. The first division
consists of structures, which generate electricity
and thermal energy. To be more detailed, these are
Toktogul, At-Bashy, Kurpsai, Shamaldy-Sai, Tash-Kumyr,
Uch-Kurgan Hydro Electric Power Stations and two
thermal stations in Bishkek and Osh. The second
division includes transmitting companies, which
control the high-voltage electricity transmission
lines for electricity supply to the regions of the
Republic. The third division consists of the switching
companies: "National electric grid", and
four switching companies: "Sever Elektro"
(Chuy and Talas provinces and Bishkek), "Vostok
Elektro" (Issyk-kul and Naryn provinces), "Osh
Elektro", and "Jalal-abad Elektro".
Today, instead of one company "Kyrgyzenergo"
there are seven companies. All of them are subject
to privatization after the Parliament will issue
a corresponding resolution. The "SeverElectro"
is the first to be privatized because it is the
largest and most attractive company for the investors.
National Power Grid, which is charged with transporting
electricity, includes high-voltage power grids in
Chuisk, Issyk-Kul, Naryn, Tallask, Osh, and Dzhalal-Abad
regions. It includes some station lines from 110
kilowatts up to 500 kilowatts.
The system of transmission lines includes 110, 220
and 500 kV lines. The North and South areas of Republic
are connected with 500 kV line and have a connection
with the united electric power system of the Central
Asia. The nearest existing 500 kV transmission line
goes in 46 km. from Kambarata HPP-2. The Republic
power system has connection with Central-Asian states
through main networks of 500 kV and it functions
in uniform energy mode. Connection with the power
system of the Russian Federation is available through
the electric grid of Kazakhstan.
The length of electric grid is 69,049 km. Power
transmission lines of 35 kilovolt and higher capacity
are 10,920 km long, and high voltage lines of 0.4-10
kilovolt are 58,352 km long. As of 1.01.2001 the
number of electrical substations of voltage 35 kV
and higher has reached 514 with total capacity of
10447 MVA.
"National electric grid' is a joint stock company.
80,5% of total shares belong to Kyrgyz Government,
13% belong to the Social Fund, the rest 7,5 % belong
to the private investors: physical and legal entities,
minor shareholders, all together they make up 15.
Naturally, 93,5% of total shares could not be privatized
without the permission of the Government. National
grid only makes the transmission of electricity
within the Republic and also exports it.
Partners
Power engineering is Kyrgyzstan's strategic sector.
Every year a great number of project proposals come
from foreign investors. Given the current economic
situation of the republic and the company proposals
containing the most privileged credit terms and
conditions are selected.
However further foreign investment in power engineering
is becoming more and more problematic due to the
following reasons:
· for a range of reasons, Kyrgyzenergo economic
situation worsened in 1999;
· loan payback began in 2000.
To obtain loans for building new hydro power stations
and high voltage power transmission grids to export
electric energy, long-term electricity export agreements
with adjacent countries are necessary - but they
do not exist so far.
Since 1999, Kyrgyzenergo began to intensively develop
technical cooperation programs with international
organizations. The company specialists have undergone
training and practical training in western energy
companies within the frameworks of various cooperation
programs.
During the last 5 years, the Kyrgyz Republic has
become a key member of the Central Asian power system
due to the availability of high power capacities
of the hydropower plants. This allows the Republic
to export electricity to the neighbouring countries
and to provide frequency regulating services in
the united energy system of Central Asia.
Products
According to state electricity company Kyrgyzenergo,
the country generated 9.314 billion kilowatt-hours
of electricity in the first eight months of 2001,
9.8 percent less than in the same period last year
(10.328 billion kilowatt-hours). Kyrgystan plans
to produce 13.2 billion kilowatt-hours of electricity
in 2001, compared with 14.844 billion kilowatt-hours
in 2000. Expansion of electricity output has been
hindered by inadequate domestic production of transmission-related
equipment, limited fiscal resources, and inadequate
pricing and cost recovery. Currently the infrastructure
to export large amounts of energy is lacking. Kyrgyzstan
is studying the possibility of constructing transmission
lines to China.
The expert group representing Kyrgyzstan, Kazakstan
and Uzbekistan has developed a draft of an agreement
on mutual supplies of energy sources. According
to this document, the Kyrgyz Republic should receive
600 million cubic meters of gas and 750,000 tons
of coal for its heating and power plants. In exchange
for these products, Kyrgyzstan would supply 2.2
million kWh of electric power. In 1998, Kyrgyzstan
imported 999.3 million cubic meters of gas, 810,017
tons of different coals and exported 998.4 million
kWh of electric power.