Kazakhstan's Majilis ratifies agreement with Russian on measures to support parallel grid operation

ASTANA. Jan 29 (Interfax) - Kazakhstan's Majilis has passed a law ratifying an agreement with Russia on measures to support the parallel operation of the two countries' power grids.

"The main purpose of the draft agreement is the need to formalize relations that arise from parallel operation, as well as to determine the basic conditions for this interaction," Kazakh Energy Minister Almassadam Satkaliyev said in the lower house of parliament.

He said that recent years, Kazakhstan's energy system had faced a capacity shortage, and due to emergency and unscheduled repairs at power plants, hourly fluctuations in the actual balance of cross-border flows with the Russian energy system had significantly exceeded agreed permissible limits.

"In some hours, fluctuations were as high as 1,500 megawatts. Because permissible power flows between the energy systems of Kazakhstan and Russia were systematically exceeded, the Russian side on November 15, 2021, raised the issue of updating the agreement effect at the time between the Russian and Kazakh governments dated November 20, 2009," Satkaliyev said.

He said an agreement was reached that additional costs within the permissible range of fluctuations would not be incurred and that the updated terms for the purchase and sale of electricity to offset deviations between Kazakhstan Electric Grid Operating Company and Inter RAO were provided for. In particular, a 2.5% rate of return will be applied only above the permissible range of fluctuations.

"The negotiating team elaborated the relevant amendments to the agreement, by which the demands of the Russian side were minimized and the Kazakhstan's national interests safeguarded. The Kazakh and Russian energy ministries signed the agreement on November 9, 2023," Satkaliyev said.

The law has now been sent to the Senate for further review.