The main challenges Inter RAO faces in developing the Generation sector in the context of strategic priorities are:
- Ensuring the reliability, safety, and technological development of existing production assets
- Improving the operational, energy, and environmental efficiency of generating assets and maintaining leading positions in the Russian electric power industry
- Further growth in the heat generation segment
- Drafting and promoting proposals for the development of a regulatory framework in the industry
At the end of 2019, a number of important changes took place in the electric and thermal power generation sectors within the Group as a whole, which led to a reduction in installed electric power capacity by 5.5% to 31,860 MW and electricity generation by 1.7% to 130.203The financial results of JSC Ekibastuzskaya TPP-2 are not included in the Group’s financial results due to the reclassification of a 50% stake in JSC Ekibastuzskaya TPP-2 to assets classified as held-for-sale in December 2016. The operating results of JSC Ekibastuzskaya TPP-2 are included in the Group’s operating results 100% up to December 2019 inclusive. A transaction to sell the 50% stake in JSC Ekibastuzskaya TPP-2 was completed in the fourth quarter of 2019. mln kWh. Such changes mainly include:
- The commissioning of two power units at the Pregolskaya TPP in Kaliningrad that run on natural gas with total capacity of 228 MW
- The withdrawal of the coal-fired Ekibastuzskaya TPP-2 with installed capacity of 1,000 MW and 514 Gcal/h from the Group’s structure in order to reduce greenhouse gas emissions
- The termination of a concession agreement between Trakya Elektrik and the Ministry of Energy of Turkey under which TPK Trakya with installed capacity of 478 MW was returned to the Turkish state company EUASThe financial results of Trakya Elektrik Üretim ve Ticaret A.Ş. are presented in the ‘Foreign Assets’ segment.
- The decommissioning of inefficient equipment at two power units of the Kashirskaya TPP with total capacity of 600 MW and a turbine unit at the Ufimskaya CHPP-1 with capacity of 9 MW.
As a result of these changes, the share of coal generation within the Group’s installed capacity decreased by 18% and amounted to 14%.
Co-generation is the joint generation of electrical and thermal power in a single device, which allows for releasing both electric and thermal power to the consumer with a low level of specific fuel consumption. An increase in the supply of thermal power from the unit increases its efficiency factor, which not only reduces fuel consumption for energy generation but also emissions of harmful substances and greenhouse gases into the atmosphere. The effect from the use of co-generation primarily depends on whether consumers have thermal power, so energy facilities with co-generation energy production are located in large cities.
Energy facilitiesPower facilities with co-generation include facilities with 100% extraction turbines, CCGT, and GTU operating in a closed cycle that supply thermal power to consumers. operating with a co-generation cycle that are part of the Group are located in the cities of Ufa, Tomsk, Omsk, Kaliningrad, St. Petersburg, and Sochi, among others. In 2019, these plants generated 25% of electric power and 79% of thermal power in co-generation mode.
Inter RAO supports the use of alternative energy sources in economically and technically justified situations, in particular in remote or technologically isolated areas. This is consistent with the provisions of Federal Law No. 261 FZ of the Russian Federation dated November 23, 2009 “On Energy Conservation and Energy Efficiency Improvement and Amendments to Certain Legislative Acts of the Russian Federation.”
Inter RAO utilizes uses power generation systems that run on renewable energy sources (RES) with total installed capacity of 471 MW, which produced 1.344 bln kWh of electric power for its own needs and for sale to outside consumers. Such facilities include:
- Hydroelectric power plants with total installed capacity of 438 MW: Pavlovskaya HPP (166.4 MW) and Yumaguzinskaya HPP (45 MW) in the Republic of Bashkortostan (RF) as well as Khrami HPP-I (113 MW) and Khrami HPP-II (114 MW) in the Republic of GeorgiaThe financial results of Khrami HPP-I and Khrami HPP-II are presented in the ‘Foreign Assets’ segment.
- Small and micro hydroelectric power plants with total installed capacity of 0.75 MW: Mechetlinskaya and Slakkaya MHPPs (0.55 MW) as well as Avzyanskaya, Uzyanskaya, and Kaginskaya MHPPs (0.2 MW) in the Republic of Bashkortostan (RF)
- Wind power plants with total installed capacity of 31.7 MW: VydmantaiA subsidiary of AB INTER RAO Lietuva, which is part of the ‘Trading in the Russian Federation and Europe’ segment. wind park (30 MW) in the Republic of Lithuania and the Tyupkilda wind farm (1.65 MW) in the Republic of Bashkortostan (RF)
Within the Inter RAO Group, the ‘Generation in Russia’ business includes two operating segments: ‘Electric Power Generation in the Russian Federation’ and ‘Thermal Power Generation in the Russian Federation’ with total installed capacity of 29,083 MW and 25,086 Gcal/h. The two segments make up 11.2% of the total installed electric power capacity of the Russian Federation. The ‘Generation in Russia’ business generated a total of 120.522 bln kWh in 2019 (down 1% compared with 2018), while heat output decreased by 3.6% to 40,067,000 Gcal.
The segment is managed by JSC Inter RAO – Electric Power Generation, which unites 20 of the largest power plants in Russia with total installed capacity of 22,572 MW and 5,678 Gcal/h.
Power plants in the ‘Electric Power Generation in the Russian Federation’ segment in the 1st pricing zone primarily run on natural gas (1,716 MW). In addition to natural gas, the Pechora TPP (1,060 MW) also runs on associated gas. The Yuzhnouralskaya TPP in the UES of the Urals uses coal and natural gas as fuel, while the Cherepetskaya TPP (450 MW) in the UES of the Center runs on coal. In the 2nd pricing zone, the ‘Electric Power Generation in the Russian Federation’ segment has two coal-fired power plants – Kharanorskaya TPP (665 MW) and Gusinoozyorskaya TPP (1,190 MW). LLC Ugolny Razrez supplies coal for the Gusinoozyorskaya TPP.
Commissioning and decommissioning of facilities
In 2019, Kaliningrad Generation, a joint venture of JSC ROSNEFTEGAS and PJSC Inter RAO, completed construction on the Pregolskaya TPP and commissioned the plant with installed capacity of 455.2 MW on March 6, 2019. The power plant was built as part of a project to ensure energy security in the Kaliningrad Region, which is being implemented based on instructions from the President of the Russian Federation and in accordance with the orders of the Government of the Russian Federation. The Pregolskaya TPP includes four combined cycle plants. All the main equipment installed at the plant is Russian-made: four PG6111 (FA) gas turbines manufactured by LLC Russian Gas Turbines; four TF 90G 2U3 generators manufactured by CJSC ELSIB; four K 38-8.0 steam turbines manufactured by OJSC Power Machines; and four waste heat boilers manufactured by OJSC Machine-Building Factory of Podolsk.
The installed capacity of the Mayakovskaya TPP (+2.65 MW) and Talakhovskaya TPP (+2.1 MW) also increased in 2019 due to re-certification starting from August 1.
The inefficient equipment of two power units at the Kashirskaya TPP with total capacity of 600 MW was decommissioned on January 1, 2019.
The segment includes three major heat generating companies (JSC TGC-11, JSC Tomsk Generation, and LLC BGC with total installed electric power capacity of 6.51 GW and installed thermal power capacity of 19,408 Gcal/h). The segment also includes heating networks with a total length of 2,449km in the Omsk and Tomsk Regions as well as in the Republic of Bashkortostan of the Russian Federation.
Installed capacity of the Bashkir Generation sub-segment
The Bashkir Generation sub-segment includes LLC Bashkir Generating Company (LLC BGC) and LLC Bashkir Heat Distribution Networks (LLC BashRTS), which manage generating assets in the Republic of Bashkortostan with total installed capacity of 4,460 MW and 12,216 Gcal/h. In total, the Bashkir Generation sub-segment manages the operation of ten major thermal power plants (one TPP and nine CHPPs) that run on natural gas, seven hydroelectric power plants (including five small micro hydroelectric power plants), one wind power plant, and 27 boiler houses that run on natural gas, including three mini-gas turbine power plants (CHPPs).
At the end of 2018, the installed thermal power capacity of LLC BGC and LLC BashRTS made up more than 95%For more information visit the website. (12,245 Gcal/h of 12,570.9 Gcal/h) of the total heat supply sources in the Republic of Bashkortostan, which meets almost all the republic’s energy needs (95% of heat).
The sub-segment’s installed capacity remained virtually unchanged in 2019, except for the decommissioning of a turbine unit at the Ufimskaya CHPP-1 with capacity of 9 MW.
The BGC Group saw installed heat capacity decrease by 30 Gcal/h due to the influence of various factors: the decommissioning of Turbine Unit No. 5 at the Ufimskaya CHPP-1 production site of the Ufimskaya CHPP-4 branch (–72 Gcal/h) as of March 1, 2019, the lease of eight boiler houses in Sterlitamak (+22.5 Gcal/h) starting from August 8, 2019, and the commissioning of the VK 4 KTs 1 hot water boiler at the BashRTS-Ufa branch starting from November 22, 2019 following reconstruction.
Installed capacity of TGC-11 sub-segment
The TGC-11 sub-segment includes JSC TGC-11, JSC Omsk RTS, JSC Tomsk Generation, and JSC TomskRTS with total installed capacity of 2,051 MW and 7,192 Gcal/h, which fall within the Siberia 2nd pricing zone.
The power facilities of JSC TGC-11 and JSC OmskRTS are located in Omsk. JSC OmskRTS combines the heat network, heat supply business, and thermal energy generation in Omsk with its boiler sources. The enterprise includes the structural units Heat Networks, Teploenergosbyt, Thermal Inspectorate and Energy Audit, CHPP-2, and Kirov District Boiler House. The production facilities of JSC TGC-11 include CHPP-3, CHPP-4, and CHPP-5. Omsk power plants and boiler houses primarily run on coal and natural gas.
JSC Tomsk Generation and JSC Tomsk Heat Distribution Networks (JSC TomskRTS), a subsidiary of JSC Tomsk Generation, generate electricity and heat and also transmit and sell heat in Tomsk. JSC Tomsk Generation has total installed capacity of 485.7 MW and 2,390.5 Gcal/h. It includes one TPP that runs on coal as the main fuel, two CHPPs that run on natural gas, and heating systems with a total length of 638 km. JSC Tomsk Generation also includes the structural units Teploenergosbyt and Thermal Inspectorate and Energy Audit.
The generating facilities of the ‘Electric Power Generation in the Russian Federation’ segment reduced electricity generation by 2.7% to 92.068 bln kWh in 2019. The installed electric capacity utilization factor of the segment’s plants decreased by 0.9 percentage points to 46.6%.
Power generation primarily declined due to the lower profit margins of electricity sales at the Permskaya TPP, Iriklinskaya TPP, and Gusinoozyorskaya TPP during periods when sale prices were lower than fuel costs on the day-ahead market as well as longer periods of repair work in 2019 compared with 2018 at the Kaliningrad CHPP- 2, Northwest CHPP, and Verkhnetagilskaya TPP. These negative factors were partially offset by an increase in production at the Kostromskaya TPP and Kharanorskaya TPP as a result of increased demand and the profit margins of generation in the power system, a shorter repair period at the Urengoyskaya TPP in 2019 compared with the previous year as well as the commissioning of new facilities at the Pregolskaya TPP.
Thermal power output in the ‘Electric Power Generation in the Russian Federation’ segment amounted to 4,488,000 Gcal, up 5.9% as a result of lower average outdoor temperatures in summer in the regions where the Group’s generating assets operate (mainly the Northwest CHPP).
The specific fuel consumption for the supply of electricity from busbars fell by 2.1 g of fuel equivalent/kWh, or by 0.7%, due to the optimization of generating equipment that was engaged into operations. Specific fuel consumption for thermal power supply decreased by 0.6 kg of fuel equivalent/Gcal, or 0.4%.
|Indicator||‘Electric Power Generation in the Russian Federation’ segment|
|Revenue, RUB mln||165,690||177,358||192,449||8.5 %|
|Share in Revenue of Inter RAO Group, %||19%||18%||19%||1 p.p.|
|Operating expenses, including|
|Purchased electricity and capacity, RUB mln||(7,006)||(6,999)||(6,852)||– 2.1 %|
|Fuel expenses, RUB mln||(76,559)||(76,490)||(77,501)||1.3 %|
|Share in the profit/(loss) of joint ventures, %||2,704||(3,057)||3,125||202.2 %|
|EBITDA, RUB mln||57,058||59,998||79,440||32.4 %|
|EBITDA margin, % EBITDA margin was calculated excluding inter-segment revenue in the ‘Electric Power Generation in the Russian Federation’ segment in the amount of RUB 50.502 bln for 2019, RUB 46.037 bln for 2018, and RUB 41.911 bln for 2017.||46%||46%||56%||10 p.p.|
|Share in EBITDA of Inter RAO Group, %||58%||50%||56%||6 p.p.|
Revenue in the ‘Electric Power Generation in the Russian Federation’ segment increased by RUB 15.091 bln (+8.5%) during the reporting period primarily due to growth in revenue from sale of capacity by JSC Inter RAO – Electric Power Generation as a result of higher sale prices for CDA facilities in connection with the start of payment for the ‘CDA 10/15 Delta’ at a number of facilities and the commissioning of the Pregolskaya TPP.
Expense on purchased electricity and capacity decreased by RUB 147 mln (–2.1%) versus 2018, while fuel expenses increased by RUB 1.011 bln (+1.3%).
EDITDA in the segment increased by RUB 19.442 bln (+32.4%) due to increased selling prices for capacity in the CDA sector and the commissioning of new equipment at the Pregolskaya TPP.
Generating facilities in the ‘Thermal Power Generation in the Russian Federation’ segment increased electricity generation by 4.7% to 28.453 bln kWh in 2019. The installed electric capacity utilization factor of the segment’s plants stations increased by 1.6 percentage points to 49.9%. Generation increased due to a higher load at the BGC Group’s plants as a result of favorable pricing on the market in the region where the plants operate as well as the commissioning of the first phase of the Zatonskaya CHPP’s power units starting from March 2018 and the second phase starting from April 1, 2018.
Thermal power output from collectors decreased by 4.6% as a result of higher average outdoor temperatures during the heating season in 2019 compared with 2018 in the regions where the Group’s generating assets operate.
Specific fuel consumption for electric power supply from busbars decreased by 2.0 g of fuel equivalent/kWh, or 0.7%, due to the optimized workload of generating equipment and a decrease in condensation output at a number of plants. Specific fuel consumption for the supply of thermal energy increased by 0.4 kg of fuel equivalent/Gcal, or 0.3%.
|Indicator||‘Thermal Power Generation in the Russian Federation’ segment|
|Revenue, RUB mln||84,847||90,253||95,965||6.3 %|
|Share in Revenue of Inter RAO Group, %||10%||9%||9%||0 p.p.|
|Operating expenses, including|
|Purchased electricity and capacity, RUB mln||(6,643)||(6,606)||(7,265)||10.0 %|
|Fuel expenses, RUB mln||(40,668)||(41,968)||(44,359)||5.7 %|
|EBITDA, RUB mln||13,889||17,670||19,594||10.9 %|
|EBITDA margin, %EBITDA margin was calculated excluding inter-segment revenue in the ‘Thermal Power Generation in the Russian Federation’ segment in the amount of RUB 17.592 bln for 2019, RUB 15.388 bln for 2018, and RUB 13.693 bln for 2017.||20%||24%||25%||1 p.p.|
|Share in EBITDA of Inter RAO Group, %||15%||14%||13%||- 1 p.p.|
Revenue in the ‘Thermal Power Generation in the Russian Federation’ segment grew by RUB 5.712 bln (6.3%) during the reporting period mainly due to increased revenue from sale of electricity and capacity by the BGC Group (RUB 4.805 bln), which resulted from higher electricity generation due to equipment at the Zatonskaya CHPP working at full power in 2019, increased production at the Karmanovskaya TPP, higher prices on the day-ahead market and the sale of capacity at the Zatonskaya CHPP under CDAs. Revenue from the sale of electricity and capacity as a result of the TGC-11 Group’s operations grew by RUB 907 bln due to higher prices on the day-ahead market and the CDA of CCGT 90 at CHPP-3 and higher prices at CCA amid decreased production due to changes in network restrictions, namely an increase in the maximum allowable flow of electricity into the power system of the Omsk Region after the full commissioning of the Voskhod substation with capacity of 500 kV. The indexation of tariffs for thermal energy also had an impact on the growth in revenue at JSC OmskRTS (+9.1%).
Expenses on purchased electricity and capacity increased by RUB 659 mln (10.0%), while fuel expenses grew by RUB 2.391 bln (5.7%) due to higher production levels compared with the previous year.
EDITDA in the ‘Thermal Power Generation in the Russian Federation’ segment grew by RUB 1.924 bln (10.9%) due to equipment at the Zatonskaya CHPP working at full power in 2019, higher prices for electricity sold on the day-ahead market, an increase in average selling prices for thermal power in the Omsk and Tomsk Regions, and also because of rising prices and supply volumes in the CCA and CDA segments for JSC TGC 11.
|Plant||Unit||Actual installed capacity under CDA, MW||Total cost of CDA projects, RUB bln including VAT||Actual commissioning date||Period when capacity tariff granted under CDA In accordance with Resolution No. 1172 of the Government of the Russian Federation dated December 27, 2010.|
|Kashirskaya TPP||Unit No. 3||330||11||12/31/2009||01/01/2010–04/30/2019|
|Sochinskaya TPP||Unit No. 3||82.5||4||12/25/2009||01/01/2010–12/31/2019|
|Omskaya CHPP-3||Turbine Unit PT 60-130, Station No. 11||60||0.1||12/30/2010||01/01/2011–12/31/2016|
|Omskaya CHPP-3||Turbine Unit PT 60-90, Station No. 9||60||0.2||12/31/2010||01/01/2011–12/31/2017|
|Ivanovskiye CCGT||Unit No. 2 of Ivanovskiye CCGT||325||11||06/04/2012||07/01/2012–01/01/2022|
|Kharanorskaya TPP||Unit No. 3||235||11||11/01/2012||12/01/2012–12/31/2021|
|Urengoyskaya TPP||Unit No. 1||505.7||24||11/30/2012||12/01/2012–09/30/2022|
|Tomsk branch of TGC-11||No. 1 GTU 16 (PRK)||14.7||1||12/20/2012||01/01/2013–12/31/2022|
|Omskaya CHPP-3||CCGT 90 (Unit No. 1)||85.2||6||06/18/2013||07/01/2013–12/31/2022|
|Gusinoozyorskaya TPP||Unit No. 4||210||8||10/31/2013||11/01/2013–12/31/2021|
|Omskaya CHPP-3||Turbine, Station No. 12||60||0.2||09/30/2013||10/01/2013–10/31/2017|
|Dzyubginskaya TPP||Units No. 1 and 2||198||17||10/31/2013||11/01/2013–10/31/2023|
|Yuzhnouralskaya TPP-2||Unit No. 1||422.1||20||02/14/2014||03/01/2014–12/31/2022|
|Nizhnevartovskaya TPP||Unit No. 3.1||431||20||03/14/2014||04/01/2014–09/30/2023|
|Omskaya CHPP-3||Turbine, Station No. 13||60||0.3||11/30/2014||12/01/2014–12/31/2023|
|Cherepetskaya TPP||Unit No. 8||450||35||12/18/2014||01/01/2015–12/31/2022|
|Cherepetskaya TPP||Unit No. 9||450||35||03/27/2015||04/01/2015–12/31/2023|
|Yuzhnouralskaya TPP-2||Unit No. 2||422.4||16||11/21/2014||12/01/2014–12/31/2023|
|Omskaya CHPP-5||Turbine, Station No. 1||100||0.4||12/21/2014||01/01/2015–12/31/2017|
|Omskaya CHPP-5||Turbine, Station No. 2||100||0.4||10/23/2015||11/01/2015–12/31/2017|
|Omskaya CHPP-3||No. 10 (Turbine Т- 120 )||120||3||12/22/2016||01/01/2017–12/31/2025|
|Verkhnetagilskaya TPP||Unit No. 12||447.2||26||05/31/2017||06/01/2017–11/01/2027|
|Permskaya TPP||Unit No. 4||903||40||07/31/2017||08/01/2017–06/30/2027|
|Zatons kaya CHPP||Unit No. 1||440||22||02/27/2018||03/01/2018–12/31/2026|
|Za tons kaya CHPP||Unit No. 2||440||22||03/12/2018||04/01/2018–12/31/2026|
Inter RAO’s production asset repair programs for 2019 were compiled taking into account such technical needs for the repair of fixed assets as:
- The technical condition of equipment, buildings, and structures
- The need to ensure the reliable and safe operation of energy facilities
- The availability of cost-effective repair actions
The number of emergency shutdowns at generating facilities decreased by 14% compared with 2018 to 311 cases due to the timely and effective implementation of plans and programs for the repair, reconstruction, and modernization of equipment and technical devices, stricter quality control of work performed by repair organizations during major and routine repairs as well as the prevention of violations of the rules for the repair, maintenance, and commissioning of equipment.
The accidents that occurred at the Group’s power facilities in 2019 were investigated. Investigation reports were prepared and subsequently recorded in the Accident Database in the Electric Power Industry automated information system of the System Operator. Corrective and preventive measures were issued for each case involving emergency shutdowns in accordance with established and approved deadlines.
Repair and reconstruction activities in the ‘Electric Power Generation in the Russian Federation’ segment [EU30]
In 2019, the average operational availability factorThe factor is calculated as the ratio of a power plant’s total number of hours of operation versus the number of hours in the period (as a percentage). for power plants in the ‘Electric Power Generation in the Russian Federation’ segment was 85.8%. This was down 6 percentage points from 2018 due to repair work at power units of the Kaliningradskaya CHPP-2, Verkhnetagilskaya and Nizhnevartovskaya TPPs as well as Northwest CHPP. The following are highlights of some of the most important events implemented in 2019:
- Overhauls of gas turbines at Power Unit No. 1 (450 MW) of Kaliningradskaya CHPP-2, which was commissioned in 2005
- Modernization of the TVV-230-2UZ generator at Power Unit No. 8 of the Kostromskaya TPP, which was commissioned in 1973
- Retooling of the G-6 generator of Northwest CHPP with the complete replacement of the stator winding and the use of modern insulation with increased thermal conductivity
Overhauls of gas turbines at Power Unit No. 1 (450 MW) of the Kaliningradskaya CHPP-2 were carried out in order to extend the fleet life (100,000 equivalent operating hours). The repairs included the replacement of the moving and fixed turbine blades, the bottoms of the fire tubes, mixers, inner casings, all compressor blades, the front hollow shaft, gas distributors, GT-11 burners, middle hollow shafts, couplers and rotor nuts, compressor bearings, end caps of inner casings, and the pipe fittings of the GT-11 and 12 gas distribution systems.
This measure ensured that the GTE-160 gas turbines at Stations No. 11 and 12 of the Kaliningradskaya CHPP-2 branch of JSC Inter RAO – Electric Power Generation can reliably operate up to 200,000 operating hours, i.e. the equipment will operate for a minimum of 13-14 years.
The TVV-230-2UZ generator of Power Unit No. 8 at the Kostromskaya TPP, which was manufactured by the Electrosila plant in 1972, was modernized due to the technical condition of the generator. The work that was performed increased the generator’s capacity from 320 to 350 MW, which eliminates restrictions during the subsequent modernization of power heat mechanical equipment (as part of the capacity modernization program) in order to extend the unit’s service life and increase its installed capacity.
The G-6 generator at the Northwest CHPP was retooled with the complete replacement of the stator winding due to the vibrational spark erosion of the semiconductor coating in the area where the rod exits the socket, which led to the premature aging of the insulation. As part of this work, the stator winding was completely replaced and the type of stator winding insulation was switched from Global VPI to Resin Rich. The retooling of the G-6 generator with the complete replacement of the winding not only left the generator in better condition with an extended service life, but also improved the insulation properties of the winding and the thermal features and also made it possible to conduct operational testing and measurements of the generator in full.
Repair and reconstruction activities in the ‘Thermal Power Generation in the Russian Federation’ segment [EU30]
In 2019, the average operational availability factor of the power plants of the Bashkir Generation sub-segment edged up slightly compared with the previous year and amounted to 88.8%, while this indicator for the TGC-11 sub-segment increased by 2.2 percentage points for the year, reaching 86%. Highlights of the work include:
- A ‘C’ level technical inspection was conducted of the GTU Siemens SGT-800 at Ufimskaya CHPP-2of LLC BGC and modernization measures were carried out
- Treatment facilities were built at the Omskaya CHPP-5with capacity of 6,000 m3/day
A ‘C’ level technical inspection was conducted of the GTU Siemens SGT-800 at Ufimskaya CHPP-2 as part of the timely performance of technical inspections according to the corresponding program developed by the manufacturer under the titles A, B, C, and D since the gas turbine could not operate without technical inspections. The decision was made to modernize the gas turbine in order to achieve the maximum economic effect from its operation, with a shift to longer intervals for the main ‘C’ and ‘B’ inspections (from 20,000 equivalent operating hours to 30,000 equivalent operating hours) and the addition of the low-cost ‘A’ inspection and the abolition of the expensive ‘D’ inspection. Per the approved plan, the ‘C’ inspection of the Siemens C SGT-800 inspection was carried out in the fourth quarter of 2019, including a visual inspection, technical monitoring using special control tools, and the replacement of parts having a limited resource with new ones or those that were restored after disassembly.
Wastewater treatment plants at the Omsk CHPP-5 were built to ensure the plant’s water consumption and wastewater systems comply with the requirements of existing regulatory acts concerning environmental protection and nature management and reduce any harmful effects on open water bodies in the Omsk Region (Om River).
The production level at the treatment facilities of 6,000 m3/day (250 m3/h) was determined taking into account the need to treat water that is discharged into the Om River according to the required standards for fishery reservoirs that form during floods from the adjacent territory of the ash dump according to the flood hydrograph. In terms of construction and installation works, equipment was installed on lines 1, 2, and 3, supports were installed, and engineering systems were installed.
In the near future, one of Inter RAO’s focuses in the ‘Generation in the Russian Federation’ business will be to implement measures to modernize generating facilities selected as part of the National Program for the Modernization of the Generating Facilities of Thermal Power Plants, which was approved by Resolution No. 43 of the Government of the Russian Federation dated January 25, 2019, with capacity starting to be supplied in 2022–2025, which will improve the reliability of generating assets and production efficiency and also ensure competitiveness on electricity markets and the required level of cash flow on the capacity market.
As regards thermal power output in the combined cycle, it remains crucial to attract new consumers as well as switch to the heat balance method of calculating performance indicators starting in 2020, which will reduce the cost of electricity production and compensate for the increased cost of thermal power in the near future by systematically raising the tariff for coolant.
In an effort to improve its position in the industry, Inter RAO is taking the following measures:
- Implementation of projects to improve the reliability of generating equipment, including the modernization of process control systems and measures to improve the reliability of generators
- Implementation of measures to increase the thermal efficiency of existing equipment that were identified as part of a factor analysis of deviations in actual fuel consumption values from the original nominal values
- Retooling of steam-gas units by replacing and installing gas turbines that differ from the initial design solutions and ensure reliable and cost-effective operation
- Continuation of effective work to optimize the load configuration and profile of generating equipment given the actual price situation on the electricity markets in order to achieve maximum marginal profit values
- Continued optimization of the hours of repair sites without reducing the workload and the postponement of repairs of high-performance equipment from periods when margins are high
- Continued work to minimize fuel costs
Among risk factors, Inter RAO is examining the following aspects that may adversely affect the pace of development:
- The existence of a portion of obsolete and inefficient TPP equipment that has been in service for 50-60 years
- The existence of power plants with low installed capacity that are unable to cover their conditionally fixed costs for CCAs
- An increase in the share of electricity generated by hydropower plants and nuclear power plants
- Forced utilization rate through the cogeneration of equipment with a negative margin
- Restrictions in the maximum growth of thermal power tariffs
- The departure of major consumers and climate warming, which result in decreased heat output
- An increase in non-payments for heat
- A high level of wear on heating network pipelines and a risk of technological disruptions as a result
In order to reduce the impact of the abovementioned negative factors, a number of measures have been proposed for implementation, including:
- Replacement or new construction of generating facilities that run on modern technologies (provided there is a return on these investments)
- Periodically conducting a comprehensive assessment of the feasibility of decommissioning obsolete and inefficient equipment that requires significant investment to maintain its operation and/or modernization, and updating its fleet life
- Conducting cost-effective and technically sound modernization and extending the service life of facilities that are in high demand
- Carrying out work to amend legislation within a working group that is in charge of preparing and promoting the Inter RAO Group’s proposals for the regulatory framework governing relations between market entities in the electricity and heat supply sector