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“Leaky Bucket” of Kazakhstan’s Power Grid: Losses and Inefficient Distribution of Electric Power

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  • Emil Velinov

    (Department of Management and Marketing, Skoda Auto University, Na Karmeli 1457, 293 01 Mladá Boleslav, Czech Republic
    Department of Business Studies, RISEBA University of Applied Science, Meza 3 Street, 1048 Riga, Latvia)

  • Yelena Petrenko

    (Academic Department of Management Theory and Business Technologies, Plekhanov Russian University of Economics, 117997 Moscow, Russia
    1LLP “Rational solutions”, Doctor of Economics, Senior Researcher, Microdistrict Orbita-1 11/1, Karaganda 100000, Kazakhstan)

  • Elena Vechkinzova

    (V.A. Trapeznikov Institute of Control Sciences of Russian Academy of Sciences, 117997 Moscow, Russia)

  • Igor Denisov

    (Academic Department of Management Theory and Business Technologies, Plekhanov Russian University of Economics, 117997 Moscow, Russia)

  • Luis Ochoa Siguencia

    (Academy of Physical Education in Katowice, Mikołowska 72, 40-065 Katowice, Poland)

  • Zofia Gródek-Szostak

    (Department of Economics and Enterprise Organization, Cracow University of Economics, 31-510 Krakow, Poland)

Abstract

This paper aims to determine and explain the main factors for power losses (the so-called “leaky bucket” effect) in Kazakhstan and the reasons for inefficient energy distribution within the country. Energy efficiency in Kazakhstan is much lower compared to more economically developed countries. The differences between energy efficiency in various regions of Kazakhstan are also significant. This article explores the impact of administrative monopoly tariffs on the regional energy efficiency, based on a national study conducted in Kazakhstan in 2017. The purpose of the study was to identify the administrative barriers and their impact on the sustainability of enterprise development. What hinders the distribution of energy resources among different regions is artificial barriers in the energy market and the administrative tariff monopoly for electric power. This leads to the inefficient distribution of resources throughout the country. In addition, it is difficult to leverage low distribution efficiency in the absence of a market. The authors attempt to prove that the magnitude of administrative barriers directly affects the efficiency and competitiveness of business, as well as the final prices of goods and services for the end consumer.

Suggested Citation

  • Emil Velinov & Yelena Petrenko & Elena Vechkinzova & Igor Denisov & Luis Ochoa Siguencia & Zofia Gródek-Szostak, 2020. "“Leaky Bucket” of Kazakhstan’s Power Grid: Losses and Inefficient Distribution of Electric Power," Energies, MDPI, vol. 13(11), pages 1-19, June.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:11:p:2947-:d:368920
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    References listed on IDEAS

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    Cited by:

    1. Elena Vechkinzova & Yelena Petrenko & Yana S. Matkovskaya & Gaukhar Koshebayeva, 2021. "The Dilemma of Long-Term Development of the Electric Power Industry in Kazakhstan," Energies, MDPI, vol. 14(9), pages 1-21, April.
    2. Larissa P. Steblyakova & Elena Vechkinzova & Zhibek Khussainova & Zhanibek Zhartay & Yelena Gordeyeva, 2022. "Green Energy: New Opportunities or Challenges to Energy Security for the Common Electricity Market of the Eurasian Economic Union Countries," Energies, MDPI, vol. 15(14), pages 1-26, July.
    3. Zofia Gródek-Szostak & Małgorzata Luc & Anna Szeląg-Sikora & Jakub Sikora & Marcin Niemiec & Luis Ochoa Siguencia & Emil Velinov, 2020. "Promotion of RES in a Technology Transfer Network. Case Study of the Enterprise Europe Network," Energies, MDPI, vol. 13(13), pages 1-13, July.
    4. Maciej Chowaniak & Zofia Gródek-Szostak & Karolina Kotulewicz-Wisińska & Małgorzata Luc & Marcin Suder & Anna Szeląg-Sikora, 2021. "The RES in the Countries of the Commonwealth of Independent States: Potential and Production from 2015 to 2019," Energies, MDPI, vol. 14(7), pages 1-24, March.
    5. Zofia Gródek-Szostak & Marcin Suder & Rafał Kusa & Jakub Sikora & Marcin Niemiec, 2020. "Effectiveness of Instruments Supporting Inter-Organizational Cooperation in the RES Market in Europe. Case Study of Enterprise Europe Network," Energies, MDPI, vol. 13(23), pages 1-19, December.
    6. Monika Komorowska & Marcin Niemiec & Jakub Sikora & Anna Szeląg-Sikora & Zofia Gródek-Szostak & Pavol Findura & Hatice Gurgulu & Joanna Stuglik & Maciej Chowaniak & Atılgan Atılgan, 2022. "Closed-Loop Agricultural Production and Its Environmental Efficiency: A Case Study of Sheep Wool Production in Northwestern Kyrgyzstan," Energies, MDPI, vol. 15(17), pages 1-19, August.
    7. Zofia Gródek-Szostak & Marcin Suder & Rafał Kusa & Anna Szeląg-Sikora & Joanna Duda & Marcin Niemiec, 2020. "Renewable Energy Promotion Instruments Used by Innovation Brokers in a Technology Transfer Network. Case Study of the Enterprise Europe Network," Energies, MDPI, vol. 13(21), pages 1-13, November.

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