ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of February 20, 2015 No. 112

About approval of Rules of functioning of the balancing market of electrical energy

According to the subitem 6) of Item 1 of Article 10, Item 2 of Article 12-1, Items 2, of 3, of 4, of 5, of 6, of 10, of 11, of 12, of 13, of the 16th article 15-10 of the Law of the Republic of Kazakhstan "About power industry", the subitem 260) of Item 15 of the Regulations on the Department of Energy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 19, 2014 No. 994 I ORDER:

1. Approve the enclosed Rules of functioning of the balancing market of electrical energy.

2. To provide to department of power industry of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) the direction on official publication of this order within ten calendar days after its state registration in the Ministry of Justice of the Republic of Kazakhstan in periodic printing editions and in information system of law of Ad_let;

3) placement of this order on official Internet resource of the Department of Energy of the Republic of Kazakhstan and on the intranet portal of state bodies;

4) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 2) and 3) of this Item.

3. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication, except for Item 5 of Rules which is effective till January 1, 2022.

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of February 20, 2015 No. 112

Rules of functioning of the balancing market of electrical energy

Chapter 1. General provisions

1. These rules of functioning of the balancing market of electrical energy (further - Rules) are developed according to the subitem 260) of Item 15 of the Regulations on the Department of Energy of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of September 19, 2014 No. 994, and determine procedure for functioning of the balancing market of electrical energy, determination of zones of balancing of single electric utility system of the Republic of Kazakhstan, giving by subjects of the balancing market of electrical energy of requests to the system operator on participation in balancing on increase (lowering), selection and activation of requests of subjects of the balancing market of electrical energy for participation in balancing on increase (lowering), scoping of the balancing electric power, calculation of hourly weighted average prices for sale of the balancing electric power, procedure of payments of hourly amounts of the balancing electric power and hourly imbalances of subjects of the balancing market of electrical energy, forming of the list of providers of balance.

2. In these rules the following basic concepts are used:

1) object of generation consumption – power plant, the plant or other physical object capable to make (to issue) and (or) to consume (to accumulate) electrical energy;

2) planned balance of generation consumption – difference of the values of production and consumption of electrical energy (in one hour of operational days) the subject of the balancing market of electrical energy approved by the system operator in the hourly daily schedule of production consumption of electrical energy, in kWh;

3) the actual balance of generation consumption – difference of the actual values of production and consumption of electrical energy (in one hour of operational days) the subject of the balancing market of electrical energy, in kWh;

4) preparation time – interval of time within hour of operational days, to equal 10 (ten) minutes which is provided to the subject of the balancing market of electrical energy for preparation for execution of the application for participation in balancing on increase or applications for participation in balancing on lowering activated by the system operator, estimated since minute of operational hour in which this request was activated;

5) settlement financial center on support of renewable energy resources (further - settlement financial center) - the legal entity determined by authorized body according to subitem 70-46) of article 5 of the Law of the Republic of Kazakhstan "About power industry" (further - the Law), being the party of purchase and sale agreements of the electrical energy made by objects for use of renewable energy resources and objects for energy waste recycling according to the legislation of the Republic of Kazakhstan existing till July 1, 2023;

6) the agreement of transfer of responsibility – the agreement signed between the provider of balance and the subject of the balancing market of electrical energy who transferred responsibility for financial settlement of own imbalances to this provider of balance;

7) the application for participation in balancing on increase – the request for sale of the balancing electric power submitted by subjects of the balancing market of electrical energy in system of the balancing market;

8) the minimum electric power of balancing on increase – the minimum value of capacity of making by the subject of the balancing market of electrical energy of negative imbalance (in planned procedure) within execution of the application for participation in balancing activated by the system operator on increase, in MW;

9) the agreement of accession - the agreement signed between settlement center of the balancing market and the subject of the balancing market of electrical energy for ensuring offsets according to obligations on purchase (sale) of the balancing electric power and negative imbalances in the balancing market between subjects of the balancing market of electrical energy and settlement center of the balancing market;

10) positive imbalance – imbalance which value is more than zero (not negatively), in kWh;

11) operational days – the calendar days which are beginning at 00:00 o'clock and coming to an end at 24:00 o'clock Central European time during which the realization of the daily schedule of production consumption of electrical energy is enabled;

12) variation on border from Central Asia - difference of the actual and planned values of balance overflow of electrical energy on balancing zone border with power supply systems of the states of Central Asia (further – TsA) in hour of days, in kWh;

13) execution time - interval of time within hour of operational days, on duration varying from 21 (twenty one) to 50 (fifty) minutes, estimated, since the minute following after minute of completion of time of preparation and completing the expiration of the last minute of hour of operational days during which the appropriate subject of the balancing market of electrical energy performs direct execution of the application for participation in balancing on increase or applications for participation in balancing on lowering activated by the system operator;

14) variation on border from the Russian Federation - difference of the actual and planned values of balance overflow of electrical energy on balancing zone border with power supply system of the Russian Federation (further – the Russian Federation) in hour of days, in kWh;

15) provider of balance - the subject of the wholesale market of electrical energy which assumed responsibility for financial settlement in the balancing market of electrical energy of own imbalances and imbalances of other subjects of the balancing market of electrical energy according to the agreements signed with them, included in the list of providers of balance created by settlement center of the balancing market;

16) balancing zone – part of single electric utility system of the Republic of Kazakhstan (further – EEC of RK) in which there are no restrictions of technical nature interfering physical settlement of imbalances of the electric power, use of uniform prices for the balancing electric power and negative imbalances;

17) the resulting balancing zone imbalance – difference of the actual and planned values of balance overflow of electrical energy on border (on perimeter) balancing zones in one hour of days, in kWh;

18) the positive resulting balancing zone imbalance – positive value of balance overflow of electrical energy on border (on perimeter) balancing zones in one hour of days, in kWh;

19) the negative resulting balancing zone imbalance – negative value of balance overflow of electrical energy on border (on perimeter) balancing zones in one hour of days, in kWh;

20) system of the balancing market – the hardware and software intended for giving by subjects of the wholesale market of electrical energy of purchasing requests and requests for sale, forming of the daily schedule of production consumption of electrical energy, determination of amounts of the centralized biddings by electrical energy for digital mayner, determination of amounts of the centralized biddings by electrical energy for the power making organizations, introduction of the adjustments of the approved daily schedule, forming of the actual values of production consumption of electrical energy of subjects of the wholesale market of electrical energy, calculation of hourly imbalances of electrical energy, calculation of the hourly prices of purchase and sale of electrical energy approved by the system operator in the wholesale market of electrical energy, and also hourly purchase prices (sale) of the balancing electric power and purchase (sale) of negative imbalances;

21) unavailability of system of the balancing market is the condition of system of the balancing market confirmed with the system operator as a result of which all external users of system of one or several power nodes completely have no access to functionality or resources of system;

22) the register of offsets between subjects of the balancing market – the document created by settlement center of the balancing market based on which subjects of the balancing market of electrical energy perfrom mutual calculations for the obligations which arose at subjects of the balancing market of electrical energy in the balancing market of electrical energy of the Republic of Kazakhstan and also is the document confirming right to claim and availability of monetary commitments of subjects of the balancing market of electrical energy;

23) settlement center of the balancing market - the organization determined by authorized body according to subitem 70-45) of article 5 of the Law, performing centralized purchase and sale of the balancing electric power and negative imbalances in the balancing market of electrical energy;

24) the balancing electric power - the electrical energy intended for covering of positive imbalances in case of realization by the system operator of the approved hourly daily schedule of production consumption of electrical energy;

Limiting 25) rate for the balancing electric power – the selling price of the balancing electric power which is most permitted for subjects of the balancing market of electrical energy to settlement center of the balancing market;

26) calculations of hourly amounts of the balancing electric power and hourly imbalances – the document reflecting amounts of the balancing electric power and imbalances, and also their costs on each hour of settlement month, being the basis for settlement;

27) imbalance – difference of planned and actual balance of generation consumption, in kWh;

27-1) regulating imbalance - the imbalance made by the subject of the balancing market of electrical energy, caused by impact of system of automatic control of frequency and overflows of capacity and (or) made as a result of execution of the activated applications for participation in balancing on increase or on lowering, teams of the system operator in the Accident mode and dispatching commands of the system operator for increase in generation;

28) negative imbalance – negative imbalance – imbalance, which value less than zero (negatively), in kWh;

Limiting 29) rate for negative imbalances – the purchase price of negative imbalances which is most permitted for subjects of the balancing market of electrical energy at settlement center of the balancing market;

30) the application for participation in balancing on lowering - the purchasing request of negative imbalances submitted by subjects of the balancing market of electrical energy in system of the balancing market;

31) the minimum electric power of balancing on lowering – the minimum value of capacity of making by the subject of the balancing market of electrical energy of positive imbalance (in planned procedure) within execution of the application for participation in balancing activated by the system operator on lowering, in MW;

32) authorized body – the state body performing management in the field of power industry;

33) the wholesale market of electrical energy – the system of the relations connected with purchase and sale of planned amounts of electrical energy, functioning on the basis of purchase and sale agreements of electrical energy between subjects of the wholesale market of electrical energy;

34) the subjects of the wholesale market of electrical energy which - are power making, power transferring, power supplying the organizations which are power making the organizations using the renewable energy resources which are power making the organizations using the secondary energy resources which are power making the organizations using energy waste recycling, the consumers of electrical energy and digital mayner included in the list of subjects of the wholesale market of electrical energy created by the system operator and also the system operator, the operator of the market of centralized trade and the single purchaser of electrical energy;

35) balance overflow of electrical energy – difference of values of acceptance and leave of electrical energy on certain group of power lines (section) or on points of commercial accounting;

36) the balancing market of electrical energy – system of relations between subjects of the balancing market of electrical energy and settlement center of the balancing market, the electric power imbalances resulting from physical settlement in EEC of RK the system operator and connected with purchase and sale of the balancing electric power and negative imbalances;

36-1) coefficient of balance – the coefficient applied to calculations of the hourly prices on balancing the electric power and negative imbalances for the purpose of financial settlement of the arisen imbalances;

37) subjects of the balancing market of electrical energy are subjects of the wholesale market of electrical energy, except for the operator of the market of centralized trade;

38) the dispatching command of the system operator for increase in generation - the command of the system operator for implementation of the generating equipment of the power making organization removed from any kind of repair and who is in condition of cold reserve.

Other terms and determinations used in these rules are applied according to the legislation of the Republic of Kazakhstan in the field of power industry.

Chapter 2. Procedure for functioning of the balancing market of electrical energy

Paragraph 1. General provisions

3. The balancing market of electrical energy functions for the purpose of ensuring physical and financial settlement of imbalances in EEC of RK, stimulation of subjects of the balancing market of electrical energy to participate in settlement of imbalances in EEC of RK, and also ensuring address distribution of payment for imbalances in EEC of RK.

4. Participants of the balancing market of electrical energy are subjects of the balancing market of electrical energy and settlement center of the balancing market.

5. In the balancing market of electrical energy two goods are bought and on sale: the balancing electric power and negative imbalances.

6. Transactions on purchase and sale of the balancing electric power and negative imbalances in the balancing market of electrical energy are performed between settlement center of the balancing market and subjects of the balancing market of electrical energy.

7. The settlement center of the balancing market performs offsets according to obligations on purchase (sale) of the balancing electric power and negative imbalances in the balancing market between subjects of the balancing market of electrical energy within the agreement of accession, according to appendix 2 to these rules.

8. Subjects of the balancing market of electrical energy shall sign with settlement center of the balancing market agreements on purchase and sale of the balancing electric power and negative imbalances, and also the agreement of accession.

9. Purchase and sale of the balancing electric power and negative imbalances in the balancing market of electrical energy is performed within the purchase and sale agreement of the balancing electric power and negative imbalances concluded in standard form according to appendix 1 to these rules.

10. Each subject of the balancing market of electrical energy and provider of balance sign the purchase and sale agreement of the balancing electric power and negative imbalances, and also the agreement of accession.

11. As objects of generation consumption in these rules is accepted:

1) for the subject of the balancing market of electrical energy which does not have the license for purchase of electrical energy for the purpose of power supply, - the objects of generation consumption which are part (belonging) to this subject of the balancing market of electrical energy;

2) for the subject of the balancing market of electrical energy having the license for purchase of electrical energy for the purpose of power supply, - the objects of generation consumption which are part (belonging) the subject of the retail market of electrical energy which electric utility service is performed due to purchase of the electric power from this subject of the balancing market of electrical energy.

Paragraph 2. Physical settlement of imbalances of the electric power in EEC of RK

12. In EEC of RK physical settlement of imbalances of the electric power is performed by the system operator.

13. In EEC of RK physical settlement of imbalances of the electric power is performed separately in each zone of balancing.

14. In balancing zone the resulting balancing zone imbalances are subject to physical settlement.

15. Physical settlement of the resulting imbalances of zone of balancing is performed separately in each hour of operational days.

When implementing this settlement the system operator within the corresponding hour of operational days takes the measures directed to minimization of value of the resulting imbalance of zone of balancing which is expected following the results of this hour in case of rejection of measures for settlement (further – measures for minimization).

16. Value of the resulting imbalance of zone of balancing which is expected following the results of hour of operational days in case of rejection of measures for settlement is determined by the system operator within this hour (before its expiration 30 (thirtieth) minutes) by means of assessment of this value which is carried out taking into account the analysis of the actual values of resulting balancing zone imbalance in similar hours of last three days.

17. The measures for minimization taken by the system operator within hour of operational days in balancing zone consist in activation by the system operator within this hour of applications for participation in balancing on increase or the applications for participation in balancing on lowering submitted it in the same zone of balancing by subjects of the balancing market of electrical energy, and also its interaction with power supply systems of neighboring states directed to settlement of variations of overflows on borders with these power supply systems.

18. Activation of applications for participation in balancing on increase (lowering) by the system operator is performed in system of the balancing market on the corresponding zone of balancing.

19. Applications for participation in balancing on increase (lowering) become more active the system operator separately in each hour of operational days, but not later than 30 (thirtieth) minutes of the corresponding hour.

20. Within hour of operational days the system operator activates or only applications for participation in balancing on increase, or only applications for participation in balancing on lowering.

21. The applications for participation in balancing activated by the system operator on increase (lowering) after time of preparation are subject to execution during execution time the appropriate subjects of the balancing market of electrical energy which gave them, at the same time:

1) within execution of the activated application for participation in balancing on increase the appropriate subject of the balancing market in planned procedure makes negative imbalance in volume of the balancing on increase specified in this request;

2) within execution of the activated application for participation in balancing on lowering the appropriate subject of the balancing market in planned procedure makes positive imbalance in volume of the balancing on lowering specified in this request.

22. The subject of the balancing market of electrical energy performs execution of the applications for participation in balancing activated by the system operator on increase (lowering) by means of involvement of those its objects of generation consumption which are specified in these requests.

23. The applications for participation in balancing activated by the system operator on increase (lowering) after execution time automatically are deactivated in system of the balancing market, and appropriate subjects of the balancing market of electrical energy quickly provide change of the current values of production consumption of electrical energy to the values specified in the daily schedules of production consumption of electrical energy corresponding to them.

24. Applications for participation in balancing on increase (lowering) are activated by the system operator within specific hour of operational days in the quantity providing total amount of balancing on increase (lowering) in the value equal to value of the resulting imbalance of zone of balancing which is expected following the results of this hour in case of rejection of measures for settlement, according to the corresponding assessment of the system operator.

The system operator performs selection of specific requests for activation within hour of operational days in system of the balancing market, according to Items 55-60 of these rules.

25. If following the results of hour of days the actual value of resulting balancing zone imbalance (in this hour) is not equal to zero, this not settled part of the resulting imbalance of zone of balancing is considered the regulation received in this hour by the system operator from power supply systems of neighboring states within its interaction with these power supply systems.

26. In case of activation by the system operator of applications for participation in balancing on increase or applications for participation in balancing on lowering daily schedules of production consumption of electrical energy of appropriate subjects of the balancing market of electrical energy are not subject to adjustment.

27. Subjects of the balancing market of electrical energy automatically are notified in system of the balancing market (in the general Section of this system) on each application for participation in balancing activated by the system operator on increase (the application for participation in balancing on lowering), at the same time this notification is performed the same minute in which the corresponding activation was made.

The notification specified in part one of this Item contains the following information: type of the activated request, its amount and the price if one request was activated, or types of the activated requests, their amounts and the prices if in the corresponding minute several requests were activated.

The subject of the balancing market who received the notification confirms possibility of execution of the request in this notification. In the absence of confirmation of the request in the received notification within ten minutes, this request is deactivated and in this amount not activated request following in the order of in the ranged list is activated.

In the absence of confirmation by the subject of the balancing market of the request in the received notification because of availability of mistakes in system of the balancing market and (or) the unavailability of system of the balancing market confirmed with technical support specialists, the request is confirmed with the subject of the balancing market.

27-1. The step-by-step activation (selection) by the system operator of the same application for participation in balancing on increase (lowering) within one hour of operational days concluding that is allowed:

1) at the first stage, in case of the first activation, the first is activated any (determined by the system operator) part of initial amount of the balancing on increase (lowering) specified in this request;

2) at the subsequent stages the part of amount of the balancing on increase (lowering) specified in this request, which remained after the previous activation is activated.

In case of step-by-step activation (selection) of requests for participation in balancing on increase (lowering) activation of requests not in full of the balancing on increase (lowering) specified in this request is possible.

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