Questions of cost and pricing in the conditions of the functioning of the electricity market of Kazakhstan

Abstract

The electric power sector is analyzed from the standpoint of well-being and a number of political priorities are considered that go beyond the traditional tasks of the so-called “energy trilemma”, namely reliable, affordable and carbon-free energy. This shows the importance of solving the problem at different levels as it can help the Government of Kazakhstan more reliably achieve synergy between actions to combat climate change and other priorities and, consequently, achieve double harmonization. The purpose of the study is to consider the cost and pricing surveys in the conditions of the functioning of the electricity market of Kazakhstan. Electricity is of key importance for human well-being. Electricity is highly necessary for many basic services, infrastructure and economic activities. Despite the increase in energy efficiency, the global electricity demand increased by 115% between 1990 and 2020, which is significantly higher than the population growth rate over the same period. This trend will undoubtedly continue conditioned upon economic growth, increased access and the electrification of end users. The assessment of electricity generation technologies from the point of view of well-being requires the use of the full cost method, which includes all applicable external costs, risks and benefits to determine the low-carbon energy balance, which in the Republic of Kazakhstan, is compatible with sustainable development. This assessment clearly needs to go beyond the plant level to consider the network infrastructure and demand to get a holistic view of the social costs of electricity. The practical significance lies in the analysis of cost and pricing in the conditions of the functioning of the electricity market of Kazakhstan. © 2022. The Author(s).