In 2021, the Company continued to implement the projects and activities of the Transformation Program:
1. Project "Introduction of automated load and frequency control (ALFC)"
A joint project with “KEGOC” JSC (System Operator). As part of the project, it is planned to install hardware and software at the Stations, as well as to integrate with the System Operator's existing ALFC, to automate frequency and power control services including a time for executing the System Operator's commands and eliminating the human factor.
Goals: Obtaining an additional source of income and reducing the balance of power flows at the border of the UES of Kazakhstan and the UES of Russia, as well as ensuring energy security and energy independence of the RK.
Implementation period: 2019–2021.
Status: The project has been completed, ALFC has been put into operation at “ESDPP-1” LLP and “MHPP” JSC.
2. Project "Integrated Planning System (IPS)"
IPS – a system (tool) of planning and modeling which is intended to set goals for the medium term and search for the most appropriate mode of operation of the plant by balancing production and financial and economic indicators.
Goals:
- Increasing the accuracy of forecasting production and financial performance.
- Reducing the Company's costs by choosing the most preferable scenario.
- Prompt response to changing external and internal factors.
Implementation period: 2017–2021.
Status: The project has been completed, the system has been successfully put into operation at “ESDPP-1” LLP, “ESDPP-2 Plant” JSC and “MHPP” JSC.
3. Project "Introduction of the new integrated safety management model”
Introduction of the new integrated safety management model includes:
- Improving the organization of the process of analyzing the effectiveness of the management system in prevention of injuries;
- Transition to a risk-based approach in hazard analysis and accident prevention;
- Introduction of corporate standards:
- "Assessment of occupational health, safety and environmental protection system by the Management";
- "Conducting a leadership behavioral safety audit";
- "Assessment of risks in industrial safety, OHS, radiation safety, environment";
- "Golden safety rules";
- "Accounting and investigation of incidents";
- “Motivating staff to safe behavior”.
Goals: Improvement of safety culture and involvement of staff in occupational health and safety issues. Reducing injury rates (LTIFR, LDR) by 30% within 3 years after project implementation.
Implementation period: 2017–2022.
Status: The project has been implemented and new processes are used in operations of “ESDPP-1” LLP, “ESDPP-2 Plant” JSC, “MHPP” JSC, “ShHPP” JSC, “FWPP” JSC, “APP” JSC, “AZhC” JSC, “SGE” JSC.
4. Project "Introduction of information security management system”
IT directions are rapidly developing in Kazakhstan and therefore the demand for systems and data protection is growing. The implementation of the ISMS fully complies with the requirements of the Cybersecurity Concept (approved in June 2017 by the RK Government) and enable to prevent information attacks and improve information security.
Goals: development of processes of information security management system, implementation of cybersecurity activities in existing and future business processes of companies, mitigating of risks of violation of the stability of vital facilities by introducing targete processes, information security systems and increasing the hours of monitoring of all information security activities by 24/7.
Implementation period: 2017–2021.
Status: The project has been completed, all declared sources of activities of “Samruk-Energy” JSC, and eight subsidiaries and affiliates of the organizational perimeter are connected, information security incidents detection is monitored 24/7.
5. “Safe production” project
The automated system "Safe Production" ensures the maintenance of occupational health and safety (OHS) processes online. The system registers non-compliance with health and safety requirements, maintains training logs and security audits, which allows automatically controlling the elimination of non-compliances, generating reports, and analyzing data. The system is available for use by all employees of enterprises, which allows increasing the involvement of staff in the processes of health and safety, makes them transparent and helps registering and eliminating more non-compliance with health and safety requirements.
Goals: Reduction of occupational injuries rate by improving the safety culture of employees through the introduction of an accessible and transparent automated system for registering and investigating incidents.
Implementation period: 2020–2022.
Status: The system has been successfully put into operation at “ESDPP-1” LLP, “ESDPP-2 Plant” JSC and “APP” JSC. During the operation of the system, 3,514 non-compliances were registered at “ESDPP-1” LLP, 2,062 non-compliances at “ESDPP-2 Plant” JSC, and 3,687 non-compliances at “APP” JSC.
Since the first wave was successfully completed, the implementation of the second wave of the Safe Production project at “Bogatyr-Komir” LLP, “Alatau Zharyk Company” JSC, “Moynak HPP” JSC and “Shardarinsk HPP” JSC in 2022 was agreed.
6. Project "Analysis of commercial losses in grids using data analytics"
The project is aimed at analyzing the data collected in the automated system for commercial accounting of power consumption (ASCAPC) to identify excess losses in grids of “AZhC” JSC through:
- Building a model of predictive electricity consumption;
- Localization of excess losses;
- Determination of places of illegal connection to power grids by means of automated data analytics from ASCAPC.
Goals: Reduction and compliance with losses for each power distribution zone of “AZhC” JSC to the standard level by the end of the first quarter of 2022.
Implementation period: 2021–2022.
Status: a system for analyzing commercial losses has been developed, test activities are performed using ASCAPC data, following these activities, user training will be arranged and the system will be put into operation.
Furthermore, the following activities were implemented in 2021: “Leadership development”, “Development of corporate culture”, “Development of HR competences”, “Introduction of master data management process”, “Advancement of continuous improvement process”, “Corporate governance system improvement” and “Improving the model for purchasing electricity from RES (Pass-through extra charge)”.
At the end of the year, net benefits in the amount of 4.3 bn tenge were received from the implementation of the "IPS", "Introduction of the ALFC and "Improving the model for purchasing electricity from RES.
The Portfolio of projects and activities of Transformation Program for 2022–2026, which was created taking into account “Samruk-Energy” JSC Development Strategy for 2022–2031, was approved by the resolution of the Board of Directors dated December 14, 2021 and includes:
- The project "Reduction of carbon footprint" (implementation years 2021–2026) is aimed at minimizing the carbon footprint to achieve the goals of decarbonization of the company's operations (to learn more about this, see the Energy Transition Program of “Samruk-Energy” JSC).
- The project "Introduction of ESG best practices" (implementation years 2022–2025) is aimed at improving the investment attractiveness of the Company through obtaining an ESG rating. (learn more in the section "Sustainable development").
- The project “Changing the decision-making model based on data analysis” (implementation years 2021–2026) is aimed at reducing the costs of an enterprise through digitization of production processes.
- Project "Safe production". The implementation of the second wave of the project is expected in 2022 (more details in paragraph 5).