Integration Central Asia into the World Economy : The Role of Infrastructure and Energy

Integration Central Asia into the World Economy: The Role of Infrastructure and Energy

Electrical Energy of Kyrgyzstan(current situation, problems, prospects)

Doctor of technical sciences prof., Obozov A. D.

October, 22-23, Washington, 2007

Brief information on KyrgyzstanBrief information on KyrgyzstanGeographical position – 39-43 d.w.Geographical position – 39-43 d.w. Population – urban 40%Population – urban 40%Territory – 200 thousand sq.km, Territory – 200 thousand sq.km, – rural 60%– rural 60% 95%95% -- mountains mountains Population – 5 millionPopulation – 5 million Borders with:Borders with: Uzbekistan, Uzbekistan, Density of population 20 persons\sq.km Density of population 20 persons\sq.km Tajikistan, Kazakhstan, ChinaTajikistan, Kazakhstan, China

FuelFuel--Energy Complex of Kyrgyz RepublicEnergy Complex of Kyrgyz Republic

StocksStocks ProductionProduction ConsumptionConsumptionCOALCOAL 2317 2317 blnbln..tt 538 538 thth..tt 1250 1250 thth..ttOILOIL 4700 4700 mlnmln.м.м22. . 24.24.mlnmln.м.м22. . 960 960 mlnmln.м.м22. . HYDROHYDRO 162,7 162,7 blnbln..kwkw..hh.. 12,6 12,6 blnbln..kwkw..hh. . 9,085 9,085 blnbln..kwkw..hh..

18 18 power plantspower plants 16 – 16 – HydroHydro 2 – 2 –Thermal power plantsThermal power plants ( (BishkekBishkek, , OshOsh))

Installed capacityInstalled capacity – 3523 – 3523 MWMWTransmission LinesTransmission Lines – 35-500 – 35-500 kWkW OverOver 10 10 thousand kmthousand kmTransmission LinesTransmission Lines – – 10 10 и 0,4 и 0,4 kWkW 2 2 thousand kmthousand km

Output of electrical energyOutput of electrical energy – 13-14 – 13-14 milliard kW/hmilliard kW/hProvision of populationProvision of population – 95% – 95% of electrical energyof electrical energy

Reserve of hydro energyReserve of hydro energyIs used onlyIs used only 10% 10% of hydro potentialof hydro potential

Electrical Energy of Kyrgyzstan:

SCHEME OF THE MAIN ELECTRICAL ENERGY SYSTEM OF THE KYRGYZ REPUBLIC

High – voltage transmission lines

Electrical sub - stations

Dynamics of the level of system losses of electrical energy (1996 - 2007)

50%

40%

30%

20%

10%

0%1996 1997 1998 1999 2000 2001 200 2003 2004 2005 2007 1 п/г

42%43%

28%

32%

34%

37%

41%

40%

42%

43%

43%

42%

Comparison of lagging behind of the real level from the necessary level in the NIS

3,7

2,3

4,1

3,7

2,3

5

3,8

1,2

0

1

2

3

5

4

Армения

Азербайджа

н

Turkish

Kyrgyz

stan

Kyrgyz

stan

Necessary tariff Real tariff

4,1

5

2,1

0,4

4

3,1

3,5

1

Cen

t/kvт

Tajik

istan

Tajik

istan

Укра

инаM

oldo

vaUzb

ekist

an

Uzbek

istan

Growth of debts РЭКов

2500

2000

1500

1000

500

0%

Total debt to 31.12.2006 is 3′354 mln soms

Industrial consumers

PopulationJthers Rural consumers

Mln. somsby 1.07.2001

by 31.12.2006

165,7 166,5178,1

188,9 245,1

712,3

572,8

2286,4

Prospects of electrical energy sector of Kyrgyzstan

It is possible to construct on the river Naryn Hydro Power Plant (HEP) with the power 6450 MW with the output over 22 milliard kW

Kambarata HPP – 2 Power – 360 MW Output – 1,148 milliard kW/h Cost - 240 million $

Kambarata HPP – 1 Power – 1900 MW Output – 5,1 milliard kW/h Cost - 1,7 milliard $

Transmission Line – 500 kW for export Length 1300 km Cost 700 млн. $

Cause of crisis in electrical energy sector of the Kyrgyz Republic

Old equipment

Politically and socially dependent

problem

Low level of payments

KFDHigh level of losses

Weak management

Tariffs are lower of the necessary expenses

KFD exert unfavorable impact on the growth and macroeconomic stability of the

country :- Cause low collection of taxes into the country’s budget because of the inefficient activity of energy companies;

- Accordingly, the state expenses on salary, social expenses and social investments financed from the budget of the country are reduced;

-Misrepresent the relative electrical energy prices , bringing down the stimulus to energy saving;

-Keep impracticable enterprises, so suppressing conducting of restructuring of enterprises and reducing economic growth of efficiency;

-Misrepresent resources distribution by suppressing resources in energy consuming industries;

-Aggravate financial discipline in state structures making weaker efficiency of fiscal policy

Thank you for attentionThank you for attention!!!!!!