Reconstruction of Almaty CHPP 3 into a combined cycle power plant with an increase in capacity to 500 MW
Project description
The project helps to diversify Kazakhstan’s energy mix by replacing coal-fired generation with gas-fired generation.
The project is expected to foster sustainable economic growth in Kazakhstan. Converting CHPP-3 from high-ash coal mined in Ekibastuz to gas, utilising advanced and reliable Siemens technology, will have a positive impact on the environment in Almaty and the Almaty Region.
The project helps to enhance the country’s energy efficiency and contributes to modernisation and energy security. It will reduce power shortages in the Almaty Region and improve supply.
The initiative is part of the national project entitled Sustainable Economic Growth Aimed at Improving the Well-being of Kazakhstan’s Citizens.Key project milestones:
-EPC contract – Q3–Q4 2023
-Loan arrangements – Q3–Q4 2023
-Design specifications and estimates and construction – 2024–2026
-Commissioning – Q1 2026It will also contribute to the country’s tax revenues.
Goals and objectives
The project will issue bonds to finance the construction of a combined cycle power plant (two SGT-2000E gas turbines + two heat recovery steam generators (HRSGs) + two SST600 steam turbines) at Almaty CHPP-3, increasing the plant’s capacity from 173 MW to 500 MW, to partially address power shortages in southern Kazakhstan and peak consumption in Almaty and the Almaty Region.
The project will completely convert CHPP-3 from coal to gas. To make sure that the project receives necessary gas supplies, on 2 July 2021, Askar Mamin, Prime Minister of Kazakhstan, instructed Samruk-Kazyna to develop, in collaboration with the Ministry of Energy and KazTransGas, design specifications and estimates for the gasification of the Almaty power facilities so that Almaty CHPP-2 and CHPP-3 are provided with gas without potential delays.
The project will significantly improve the plant’s environmental performance and minimise its negative impact on the region’s environment.Figures and facts
Integration effect
The project has the potential to boost mutual trade between the Bank’s member states and promotes the development of common markets in energy equipment. Equipment can be supplied from Russia. In particular, it is planned to purchase HRSGs, booster compressor stations, other equipment, components and materials from Russian companies for a total of up to US $146 million, with maintenance to be provided by the same suppliers.
Contribution to SDGs
-The project contributes to the advancement of the electric power sector, which is among the Bank’s investment priorities.
-The project is expected to foster sustainable economic growth in Kazakhstan. It will also increase the country’s tax revenues.
-The project is expected to utilise equipment that meets cutting-edge performance, cost-effectiveness and environmental standards.
-The project is expected to enhance the country’s energy efficiency and contributes to modernisation and energy security.
-The project will improve operational parameters and generation flexibility, significantly expand the load range, enhance energy efficiency (specific and auxiliary consumption, among other indicators), and eliminate the risk of complete shutdowns.
-Project data suggests that it contributes to economic growth by increasing output and tax revenues and generating jobs during the construction phase, which aligns with SDG 8 “Decent work and economic growth.”
-The project contributes to SDGs in the EDB’s priority domains in Kazakhstan, which include modernising and constructing new energy facilities and developing all types of physical infrastructure in line with SDG 9 “Industrialisation, innovation and infrastructure.”
Alignment with the principles of investment complementarity and mobilisation
-The project complies with the principle of complementarity. The Bank provides financing that is not available on the market.
The project envisions capital mobilisation and the Issuer’s own participation.
Environmental impact
The project will convert Almaty CHPP-3 from coal to gas generation. It will significantly improve the plant’s environmental performance and minimise its negative impact on the region’s environment. In particular, the reconstruction of CHPP-3 will cut emissions in the Almaty Region from 11,700 to 1,520 tonnes per year. In addition, the Issuer is developing a corporate sustainable finance policy, to be verified by an external consultant for compliance with the International Capital Markets Association’s Sustainability-Linked Bond Principles.
