The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) has developed a project (the “Project”) together with the State Communal Enterprise Kyzylordateploelektrotsentr (the “Company” or “KCHP”) and the Akimat of the City of Kyzylorda (the “Akimat”) to upgrade the district heating (“DH”) system in the City of Kyzylorda (“Kyzylorda” or the “City”) in the Republic of Kazakhstan.
The Company at the moment is 100% owned by the City Akimat. The Company operates a combined heat and power plant (“CHP”), boiler houses and a district heating network in the City.
The current role of the KCHP is to deliver the electricity and district heat in cost-effectively and uninterrupted way to the customers. Its business includes typical services:
- District heating services – including heat transportation, distribution and supply of heat energy, construction, operation and maintenance of DH heating equipment such as DH network, pumping stations, heat exchanges, also large boiler houses and autonomous smaller boiler houses.
- Electricity services – including generation and sales of electricity to the grid services, operation and maintenance of CHP and gas turbine plant.
Most of the electricity and heat generation facilities as well as district network are significantly deteriorated. During last decade the Company initiated the modernisation of its CHP to replace oil with combined heavy gas oil and natural gas fired technology. As a result, the first natural gas turbine was put in operation in 2005.
The Company covers about 50% of the City’s needs in electricity demand and almost over 90% of heat supply. The remaining electricity demand is currently covered by more expensive sources from the neighbouring industrially developed regions and the hot water is mainly generated by individual hot water boilers installed by the City residents in their households. The project will include measures to modernize and optimize the infrastructure of the centralized heat supply through the reconstruction of networks, the replacement of a number of gas turbines and the installation of individual boiler houses equipped with heat meters that provide automated control and regulation of heat supply. This will lead to increased energy efficiency, reduced consumption of hot water and heat loss in the system and more strict compliance with environmental requirements.
LLC CECT Infrastructure Consulting and BDC Consulting provide project implementation support services, including assistance with procurement of goods and services. The project is underway.