Development Plan (Strategy)
GRI 2-12, 2-22, 2-23, 2-24
KEGOC JSC is a key infrastructure operator of the electric power system of the Republic of Kazakhstan and plays a system-forming role in ensuring energy security and the sustainable socio-economic development of the country. The scale and significance of the Company’s activities entail a high level of responsibility in the formation and implementation of a long-term strategy oriented towards the balance of interests of the state, society, business, employees and investors.
The Company’s strategy is aimed at ensuring the reliable, sustainable and adaptive functioning of the Unified Power System of the Republic of Kazakhstan in the context of structural changes in the industry, growth in the consumption of electric energy and the increasing complexity of the technological environment.
Strategic context and external factors
The formation and implementation of the strategy of KEGOC JSC is carried out taking into account the key external factors influencing the development of the electric power industry and infrastructure companies in the world and in the Republic of Kazakhstan, including:
- the energy transition and the decarbonisation of the economy;
- the growth in the share of renewable energy sources and the changing nature of generation;
- the increase in electrical loads as a result of economic growth and electrification;
- the digitalisation of the management of energy systems and the increasing importance of cybersecurity;
- Increasing requirements from investors, international financial institutions and society with regard to sustainable development, environmental protection and respect for human rights.
These trends form new challenges and at the same time create opportunities for the modernisation of the energy system and for enhancing its resilience.
Strategic management and the role of the Board of Directors
The Development Plan (Strategy) of KEGOC JSC for 2023–2032 was approved by the Company’s Board of Directors. The Board of Directors exercises oversight of the formation of strategic priorities, considers scenarios for the development of the energy system, key risks and investment decisions, and also monitors the integration of the principles of sustainable development into the Company’s activities.
In developing the Strategy, account was taken of the requirements of the legislation of the Republic of Kazakhstan, national priorities and state programmes, the country’s international commitments, including in the area of human rights and environmental protection, as well as the expectations and interests of stakeholders. The Strategy serves as the basis for management decision-making at all levels of management and ensures the long-term continuity of the Company’s development.
Key factors in the implementation of the strategy
The successful implementation of the Strategy of KEGOC JSC is based on the following interrelated factors:
- enhancement of operational and investment efficiency, including the introduction of a portfolio approach to the management of assets and investment projects;
- adaptation to the transformation of the electric power industry, including the energy transition, the development of RES, digitalisation and the introduction of artificial intelligence, the automation of processes and the strengthening of information security and cybersecurity measures;
- development of human capital and the transformation of corporate thinking, aimed at forming a culture of responsibility, sustainability and innovation.
The values and principles underlying the strategy
The strategic decisions of KEGOC JSC are taken on the basis of corporate values and the principles of responsible business conduct, including transparency, accountability, respect for human rights, the priority of safety and an orientation towards long-term sustainability. These principles are integrated into the Company’s system of corporate governance, risk management, investment planning and operational activities.
Strategic challenges and response priorities
The results of the strategic analysis and the SWOT analysis showed that the Company’s activities and the achievement of its strategic goals in the medium and long term are influenced by the following key groups of challenges:
- Reliability and development of infrastructure: insufficient throughput capacity of the National Power Grid in view of the projected growth in loads, the increasing degree of wear of the electric grids and the associated risks of asset failures.
- Balance and flexibility of the energy system: the expected deficit of electric energy and capacity in the medium term, the development of renewable energy sources and the introduction of the balancing electricity market.
- Technological development and security: the need for the further digitalisation and automation of energy system management, as well as the strengthening of measures to ensure cybersecurity.
- Investment and financing: the implementation of the updated portfolio of investment projects and the attraction of the most effective and accessible sources of financing for the implementation of major infrastructure projects.
- The institutional role of the Company: the need for the active participation of KEGOC JSC in the formation of new approaches to the management of the electric power industry and the development of the model (design) of the electricity market.
These challenges are regarded by the Company not only as sources of risks, but also as incentives for enhancing resilience, technological renewal and strengthening the role of KEGOC JSC as a key infrastructure operator of the country.
Strategic continuity
In 2025, KEGOC JSC continues the implementation of the Strategy for 2023–2032, ensuring its practical integration into operational, investment and management activities, as well as the consistent strengthening of the Company’s contribution to the sustainable development of the electric power industry of the Republic of Kazakhstan.
In this connection, three strategic goals have been determined in the Company’s Development Plan (Strategy) for 2023–2032:
Strategic Goal 1.
Ensuring the reliable functioning of the UPS of the Republic of Kazakhstan in the context of the energy transition (RELIABILITY AND DEVELOPMENT OF THE NPG).
Tasks
- performance of the functions of the system operator of the UPS of the Republic of Kazakhstan;
- advanced development of the NPG of the Republic of Kazakhstan, effective integration of RES at the level of 19 %;
- introduction of modern innovative and digital technologies and artificial intelligence for the formation of an intelligent power system (Smart Grid).
Key indicators for the achievement of the goals
- GA
- AIT
Strategic Goal 2.
Ensuring sustainable development in accordance with ESG principles (SUSTAINABLE DEVELOPMENT).
Tasks
- reduction of the carbon footprint;
- the development of human capital;
- improvement of corporate governance;
- improvement of the occupational safety system.
Key indicators for the achievement of the goals
- LTIFR
- ESG rating
Strategic Goal 3.
Increasing the value of net assets (FINANCIAL SUSTAINABILITY).
Tasks
- strengthening of financial sustainability;
- formation and maintenance of a positive image of the Company;
- development of international cooperation.
Key indicators for the achievement of the goals
- TSR
- EBITDA margin
KEGOC JSC STRATEGY 2023–2032
Ensuring Reliable and Sustainable Operation of the Electric Power System of the Republic of Kazakhstan
The strategy of KEGOC JSC is focused on the country’s energy security, power system resilience, and adaptation to structural changes in the industry.
Energy transition and decarbonization
Growth of RES
Growth in consumption and electrification
Digitalization and cyber threats
ESG expectations
Board of Directors
Strategy 2023–2032
Risks and scenarios
Investments
Sustainable development
Reliable infrastructure
Transmission capacity and asset wear
Balance and flexibility
RES and balancing market
Digitalization and security
Automation and cybersecurity
Efficient
investments
Portfolio and financing
Institutional role
Market model and development
Safety
Human Rights
Environment
Transparency
Human Capital
Long-Term Value Creation
Energy security
Sustainable power system
Trust and partnership
Financial stability
(Applicable to all strategic projects)
The Strategy is implemented in compliance with the legislation of the Republic of Kazakhstan, international obligations, and stakeholder expectations.