Environmental
Protection

The Company implemented the environmental management system, which is certified for compliance with the requirements of international standard ISO 14001. The system operates as part of KEGOC’s integrated management system. The main objective of its implementation and operation is to apply new management methods that would enhance the influence on the environmental aspects of the Company’s operational and economic activities. The environmental aspects management is a component of KEGOC’s corporate risk management system.

KEGOC’s registers of environmental aspects for 2020 were developed for effective management. When identifying the aspects, all components of the environmental impact of the Company’s activities are analysed (energy saving, water, soil, emissions, waste). Activities to manage environmental aspects are specified in the Company’s Environmental Program for 2020. ‘Potential poly-chlorinated biphenyls (PCB) containing waste’, ‘transformer oil’ and ‘waste transformer oil’ were identified as critical environmental aspects in 2020. The ‘potential PCB-containing waste’ aspect is critical due to the fact that the polychlorinated biphenyl is a dangerous substance according to the Environmental Code of the Republic of Kazakhstan (red hazard level). The ‘spent transformer oil’ and ‘transformer oil’ aspects are critical due to the existence of oil-filled equipment.

Financial or non-financial sanctions or fines for non-compliance with environmental laws and regulations were not imposed on KEGOC in 2020.

No appeals were received by the Company in connection with the environmental impact.

Ambient
Air Protection

In 2020, the volume of gross emissions of contaminants from stationary sources amounted to 9.34 tonnes (the established standard was 11.63 tonnes).

According to the UN Framework Convention on Climate Change, Kyoto Protocol, Paris Agreement and environmental laws of the Republic of Kazakhstan, the MES branches made an inventory of greenhouse gases emitted as a result of the Company operations in 2019. Greenhouse gas emissions from stationary sources and mobile sources equated to stationary sources were calculated. The 2019 reports on inventory of greenhouse gases were sent to and registered at the territorial environment departments.

Following the results of inventory of greenhouse gases emitted by stationary sources, emissions amount to 154.47 tonne carbon dioxide equivalent a year, in this connection KEGOC does not fall within the requirements for greenhouse gas cap-and-trade according to the National Plan for Greenhouse Gas Quota Allocation for 2018-2020.

Greenhouse gas emissions from stationary sources of KEGOC in 2020

At KEGOC, all wastes are divided according to the:

1. type: industrial and municipal wastes (solid domestic wastes) generated in the course of life activity;
2. hazard level (according to the Environmental Code of the Republic of Kazakhstan):

• ‘green’ – G index (non-hazardous);
• ‘amber’ – А index (hazardous);
• ‘red’ – R index (hazardous).

Waste Volume in KEGOC Divisions

Water Impact

The Company does not use water in its operational process. Water consumption by KEGOC is insignificant, so this has no material influence on used water sources. Water is consumed and discharged in accordance with contracts concluded by MES branches with specialized organisations. There are no discharges into water facilities and relief. Water is supplied from artesian wells at the seven KEGOC branches facilities; the wells are used according to obtained permissions. The specialised organisations are contracted to permanently monitor the ground water intake facilities in accordance with the Water Code of Kazakhstan.

Environmental
Actions during
Investment Projects
Implementation

The Company addresses the environmental issues in a comprehensive way when implementing projects, including investment projects. PESTEL analysis is used to analyse the risks of project implementation, including analysis of social and environmental risks. The results of the conducted environmental impact assessment are taken into account, and the option that does the least harm to the environment and human health is adopted. Identification and assessment of project risks are carried out on a regular basis and at all stages of project implementation. The impact on atmospheric air, surface and groundwater, landscapes, land resources and soil cover, biodiversity and more is estimated.

In order to manage the environmental risks, the design provides that the grid facilities must be arranged in the territories well removed from populated areas and designated conservation areas. OHTL routes mainly pass along steppes and semideserts. Should the OHTL cross forest-steppe zone, environmental impact assessment is prepared to clean glades for the OHTL and take mitigation measures. For the purpose of transparency and availability of the environmental information on the Company’s activities, the public hearings of draft EIAs are held.

Energy Efficiency

Consumption of fuel and energy resources decreased by 360,105 GJ in 2020 compared to 2019.

The most effective, in terms of reducing the energy consumption, are the measures on reduction of technological consumption of electricity in transmission lines.

The electrical power system of Kazakhstan is defined by large concentration of powerful energy sources in the North and long length transit lines (about 1,000 km) (main transits include Kazakhstan North – South transit and Pavlodar oblast – Aktobe oblast transit): this is due to the vast territory of Kazakhstan and materially affects the level of technical losses. Also technical losses in KEGOC grid depend on the operation modes of neighbouring states’ power systems (electricity transit, export and import) and climatic conditions.

KEGOC’s Technical Losses Structure for 2020

The technical losses in KEGOC networks in 2020 amounted to 2.792 billion kWh or 6.0% of electricity supply to the grid based on the metering devices.

It should be understood that technical loss of electric power means the loss of electric power resulting from the physical processes in conductors and electrical equipment which occur during the electricity transmission across transmission lines. Thus, the main goal of planning and taking the measures on reduction of electric power losses is to bring the actual amounts of technological loss to its optimal level.

Due to measures on electricity loss reduction implemented, in 2020 the reduction of electricity consumption amounted to 4.261 million kWh.