Kazakhstan Electricity Grid Operating Company KEGOC By Nigmetullina Guldana 301 group

P LAN : History of company Mission of company Investment policy Goals and objectives of long-term development strategy

H ISTORY OF THE COMPANY Joint Stock Company «Kazakhstan Electricity Grid Operating Company KEGOC» (further KEGOC) has been established according to Government Resolution of the Republic of Kazakhstan No dated 28 September 1996 «On certain measures for restructuring of Kazakhstan power system management». Date of initial state registration is 11 July 1997.

M ISSION OF THE COMPANY Vision – By 2025 KEGOC will become a world-class Company and the regional centre of competence in the power industry. JSC, being the System Operator of the Unified Power System of the Republic of Kazakhstan, carries out the following kinds of activity: Provide subjects of the wholesale electricity market with services in electricity transmission via National Power Grid according to the Agreement, providing its technical maintenance and keeping of its operational availability;

Provide subjects of the wholesale electricity market with services in technical dispatching by the centralized operative-dispatching management of operating mode of the Unified Power System of the Republic of Kazakhstan according to the Agreement, including the drawing up of actual statements and forming of 24 hours schedule of electricity generation-consumption; Provide performance reliability of the Unified Power System of the Republic of Kazakhstan;

Provide subjects of the wholesale electricity market with services in physical regulation of disbalance in electric power; Realize subsequent financial regulation of disbalance in electric power in the order, established by the legislation of the Republic of Kazakhstan; Acquire from the subjects of the wholesale electricity market auxiliary services to provide the readiness of necessary volumes and structure of operative reserves of electric power, regulation of active reactive power, on launching of power system from the de-energized state; Realize organization of real time functioning of balancing wholesale electricity market and system and auxiliary services market;

Interact with power systems of the adjacent states in management and maintenance of stability of parallel work modes; Realize technical and methodical management in creation of the Unified Information System, the automated system of the commercial account of electric power, the connected relay protection devices and anti-damage automatics of all subjects of electricity wholesale market; Provide equal conditions access to the National Power Grid for subjects of electricity wholesale market; Provide the participants of the wholesale market of electric power of the Republic of Kazakhstan with the information which is not touching data, being the commercial and other secret protected by the Law;

Coordinate lead out to repair of the primary equipment of electric power stations, substations, electricity transmission lines, relay protection devices and anti-damage automatics, systems of technological management and maintenance of their availability for service; Participate in modes development of hydroelectric power stations operation in view of their water-economic balances and operation modes of the Unified Power System of the Republic of Kazakhstan; Realize development of long-term forecasting balances of electric power; Realize purchase and sale of electric power for technological and industrial needs, for maintenance of contractual values of electricity overflows with power systems of the adjacent states, and also at occurrence of disbalances, uncovered with balancing electricity market with a view of maintenance of normative frequency of electric current in the Unified Power System of the Republic of Kazakhstan.

S TRUCTURAL SCHEME

Investment policy To date KEGOC has completed three large-scale investment projects and commenced several new ones of strategic importance: Kazakhstan Electricity Transmission Rehabilitation Project (completed in 2009); Construction of 500 kV Second Transmission Line of Kazakhstan North-South Transit (completed in 2010); Moinak Electricity Transmission Project (completed in 2012); Kazakhstan Electricity Transmission Rehabilitation Project, Phase II (in progress); Alma Electricity Transmission Project (in progress); Ossakarovka Transmission Rehabilitation Project (in progress) Balkhash Electricity Transmission Project (in progress); Reinforcement of electricity transmission link between Pavlodar power region and Unified Power System of Kazakhstan (in progress); 500 kV OHTL Ekibastuz – Shulbinsk HPP (Semey) – Ust- Kamenogorsk Construction Project (in progress); 500 kV OHTL Shulbinsk HPP (Semey) - Aktogay - Taldykorgan - Alma Construction Project (in progress).

GOALS AND OBJECTIVES OF LONG-TERM DEVELOPMENT STRATEGY The main strategic goal is achieved by fulfilling top- level goals: Meeting the requirements of the Government regarding assurance of reliability and quality of operation of UPS of Kazakhstan; Achievement of the best companies level in the sector on performance of the System Operator functions; Stable growth of the Companys shareholder value due to core business development, efficiency raising in operation of NPG transit potential, providing of necessary conditions for realization of export potential of UPS of Kazakhstan; Leadership in the sector, Kazakhstan and CIS with regard to the Companys corporate development.

The main strategic goal is to develop a competitive company in global economy

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