Increasing of the Competitiveness of Kazakhstan's Electric Power Industry in the Context of Globalization – Vienna: Premier Publishing S.R.O
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Bakytzhan Kazhiyev Increasing of the competitiveness of Kazakhstan’s electric power industry in the context of globalization PREMIER Premier Publishing s.r.o. Publishing Vienna 2018 Bakytzhan Kazhiyev Increasing of the competitiveness of Kazakhstan's electric power industry in the context of globalization – Vienna: Premier Publishing s.r.o. 2019. – 180 с. ISBN 978-3-903197-16-9 DOI http://doi.org/10.29013/KazhiyevB.ICKEPICG.2019.180 The purpose of the thesis is to develop theoretical, methodological, scientific, and practical recommendations for improving the competitiveness of the enterprises and the electricity sector of Kazakhstan in general in the global energy markets in the globalization context. The object of the research is the power industry of Kazakhstan. The underlying theory and methodology of the research were derived from the fundamental works of foreign and domestic researchers on the theory of competitiveness, management theory, the theory of organizational development and change. The research uses general scientific methods: empirical (observations, descriptions, and measure- ments), logical (analysis, synthesis, comparisons, and logical modelling), method of expert assessments, methods of strategic business assessments (PESTLEGDE, 6 Porter's forces) economic analysis, and statistical methods. It analyses the power industry of Kazakhstan in the context of the global experience the power industry development, and technology development trends. The research also considers impediments on the way to better competitiveness of the power industry in Kazakhstan. A functional model proposed in the research shows high sensitivity of the power industry competitiveness with respect to the parameters of the selected model elements. The mathematical tools of the functional model were implemented in a software, which allows for a varied analysis of the impact that various industry development strategies might have on the level of competitiveness of Kazakhstan in the global electricity market. The research studies the ways to improve the competitiveness of the electricity industry in Kazakhstan, including by using new technologies in electricity generation and grid infrastructure. Finally, the research studies how and if perspective areas of development of the global electric power industry could be applied in Kazakhstan, including smart grids. Subscribe to print 22/10/2019. Format 60×90/16. Offset Paper. Garinitura Arno. Conv. Pec. liter. 12. Edition of 500 copies. Typeset in Berling by Ziegler Buchdruckerei, Linz, Austria. Printed by Premier Publishing s.r.o. Vienna, Vienna, Austria on acid-free paper. Am Gestade 1, 1010 Vienna, Austria [email protected], ppublishing.org ISBN 978-3-903197-16-9 © Bakytzhan Kazhiyev. 2019. © Premier Publishing s.r.o. Vienna, 2019. 3 Contents DEFINITIONS ...................................................4 SYMBOLS AND ABBREVIATIONS ...............................6 INTRODUCTION ...............................................7 Chapter 1. THEORETICAL AND METHODOLOGICAL BASIS OF INCREASING THE COMPETITIVENESS OF THE ELECTRIC POWER INDUSTRY .......................10 1.1 Scientific approaches to the interpretation of the competitiveness ............................................10 1.2 Methods for assessing the competitiveness of the electric power industry ......................................29 1.3 International integration of electric power systems as a factor of international competitiveness of the industry .......44 Chapter 2. ANALYSIS OF THE COMPETITIVENESS OF THE ELECTRICITY INDUSTRY OF THE REPUBLIC OF KAZAKHSTAN ..................................52 2.1 Current state of the power industry in Kazakhstan .............52 2.2 Comparative analysis of the competitiveness of the power industry in Kazakhstan ...............................70 2.3 Expert assessment of the competitiveness of the electric power industry of the Republic of Kazakhstan .........88 Chapter 3. WAYS TO IMPROVE THE COMPETITIVENESS OF THE ELECTRICITY INDUSTRY OF THE REPUBLIC OF KAZAKHSTAN .......... 120 3.1 The Main directions of increasing the competitiveness of the electric power industry in Kazakhstan ................. 120 3.2 Functional model of competitiveness of the electric power industry of Kazakhstan ............................. 130 3.3 Development of a mathematical model within the framework of the functional model of competitiveness of the electric power industry of Kazakhstan ................. 135 CONCLUSION ................................................ 160 LIST OF SOURCES USED ..................................... 164 APPENDIX .................................................... 173 4 DEFINITIONS 1. Unified Power System of the Republic of Kazakhstan is a set of elec- tric power facilities, united by a single electric mode, which includes pow- er plants, electrical networks and electrical installations of consumers. 2. Zones of Kazakhstan’s UPS are parts of UPS of Kazakhstan, the boundaries of which are determined by the existing topology of the pow- er system. In total, there are three zones – North, South and WPPt. 3. Regulating reservoir is a hydroelectric power plant with a reservoir, which is an integral part of the power system, which is used to redistribute and equalize in time the water flow in the hydraulic power system, which is important for maintaining the water management regime in areas not connected with this power system. 4. North-South Transit is a part of the National Power Grid connect- ing the North and South zones of UPS of Kazakhstan. It consists of power lines and substations with a voltage of 500–220 kV. The total length is about 1300 km. It is used to transfer electricity from the Northern energy sources to the energy-deficient Southern zone. 5. National Power Grid is a set of substations, switch-gears, interre- gional and (or) interstate power lines and power lines, issuing electrical power to power plants with voltage of 220 kilovolts and above. 6. Maneuverable generating capacity is the generating equipment of power plants, which has the necessary dynamic characteristics to partici- pate in the daily regulation of the power balance in the power system. 7. Capacity of the electric power network is the ability of the electric power network to ensure the transfer of a certain amount of electricity and electrical power. The value of the transmissive capacity under the conditions of UPS of Kazakhstan is determined, as a rule, by the criteria of transmission stability under static and dynamic disturbances in the power system. 8. Distributed generation – small power plants, located in close prox- imity to electricity consumers (as opposed to large power plants, concen- trated in the locations of fuel resources). DEFINITIONS 5 9. Electric power market is a system of relationships between the sub- jects of the wholesale electric power market, connected with the mainte- nance of generating equipment by the energy-producing organizations in a state of readiness for the generation of electrical energy, renewal, sup- port, reconstruction and technical re-equipment of existing production assets, as well as their creation. 10. Balancing electric energy market is a system of relationships be- tween the system operator and power producing, power transmission and power supply organizations and wholesale customers operating on the wholesale electric energy market, resulting from the physical and sub- sequent financial settlement by the system operator of real-time imbal- ances between the contractual and actual values of production and (or) consumption of electric energy in The Unified Power System of the Re- public of Kazakhstan on the current day. 11. System operator is a national company that performs centralized operational dispatch management, ensures parallel operation with the power systems of other countries, maintains balance in the power sys- tem, provides system services and purchases support services from the subjects of the wholesale electric energy market, and also transfers elec- tricity through the national power grid, provides its maintenance and op- erational readiness. 6 SYMBOLS AND ABBREVIATIONS ME RK – Ministry of Energy of The Republic of Kazakhstan UPS – The Unified Power System RES – Renewable Energy Sources NPG – The National Power Grid FACTS – Flexible AC Transmission Systems CSR – Controlled Shunt Reactor PST – Phase-Shifting Transformer CECS – Centralized Emergency Control System ALFC – Automatic Load-Frequency Control DCT – DC transmission VIC – Vertically Integrated Company HPP – Hydroelectric Power Plant CA – Central Asia OL – Overhead Line R&D – Research and Development ETL – Electrical Transmission Line RPS – Reactive Power Source ICUF – Installed Capacity Utilization Factor ASCAPC – Automatic System for Commercial Accounting of Power Consumption SME – Small And Medium Enterprise TPP – Thermal Power Plant GEI – GLOBAL ENERGY INTERCONECTION CA – Competitive Advantage FSED – Forecast of the Social and Economic Development 7 INTRODUCTION The 21st century was marked by a persistent understanding that the pace of development in society, economy and technology, in which fundamental changes occur, is unlikely to slow down, and that the ability to quickly re- spond to changes in the national and global economy in the external energy market will be an indispensable condition for business survival. Among the most significant changes in the development of the en- ergy industry are the following factors: – growth of electric energy consumption; – constantly growing requirements