Energy consumption and efficiency

The Russian Federation as RusHydro’s main shareholder ensures energy companies’ commitment to increasing energy security and reducing energy intensity. The Energy Efficiency and Development national program approved by Resolution No.321 of the Russian Government of April 15, 2014 sets out three key areas for improving energy efficiency across all types of energy resources:

  • energy saving and improving energy efficiency;
  • development and modernization of electric power industry; and
  • promotion of renewables.

RusHydro Group’s energy saving initiatives are governed by Federal Law No. 261-FZ On Energy Saving and Improving Energy Efficiency and Amendments to Certain Legislative Acts of the Russian Federation dated November 23, 2009 and the respective programs of energy saving and increased energy efficiency.

HPPs have their own specifics, which requires a special approach to assessing and improving their energy efficiency. That is why RusHydro launched the Program of Energy Saving and Increased Energy Efficiency through to 2020 (ESIEEP) specifically intended for HPPs and providing for the list of key initiatives for increasing the efficiency of energy and water resources as well as a number of priority energy saving solutions. In 2017, the program was updated following the review by the Russian Ministry of Energy to be aligned with changes to the applicable laws and regulations. The updated program is based on energy audits held in 2010 through 2016. In 2018, the Ministry of Energy registered RusHydro’s Energy Performance Certificate for another five-year period.

That same year, JSC RAO ES East’s companies engaged DGK, JSC DRSK, PJSC Kamchatskenergo, PJSC Magadanenergo, PJSC Mobile Energy, PJSC Sakhalinenergo, JSC Sakhaenergo, JSC Teploenergoservis, JSC Chukotenergo, JSC UESK, PJSC Yakutskenergo. in regulated activitiesupdated and approved their programs of energy saving and increased energy efficiency for 2019–2024 in reliance on the updated Regulations for Developing, Negotiating, Approving, Implementing and Monitoring Programs for Energy Saving and Improving Energy Efficiency for Subsidiaries Engaged in Regulated Activities approved by RusHydro’s Order No. 462 of July 2, 2018.

Energy efficiency of hydropower

In addition to power generation, HPPs serve multiple functions which are critically important both for the industry and the communities at large. These include hydrotechnical tasks (river runoff control, flood prevention), irrigation of agricultural lands, transportation (vehicle and railway traffic across rivers) as well as waterborne traffic.

In this connection, HPPs sometimes have to meet direct opposite requirements, so it is quite a hard task to analyze their performance. For example, discharge of water reduces the overall energy efficiency but provides a vital river runoff. Moreover, the generators operating in the synchronous compensator mode also reduces the overall efficiency but ensures the stability of the energy system as a whole. [103]

Since HPPs require no specific fuel to produce electricity, the performance analysis counts out this main cost item inherent in other types of power plants, with the exception of renewables. Therefore, the focus is on own consumption by HPPs.

Key areas for improving RusHydro’s energy efficiency:

  • modernization of interior and exterior, routine and emergency lighting systems (partially based on automatic controls);
  • modernization of HVAC systems for powerhouses and auxiliary buildings (including weather controls);
  • rehabilitation of heated buildings and facilities, elimination of warm air leaks, reduction in indoor infiltration;
  • rehabilitation of heating and hot water supply systems, electric boiler houses, modernization of pump stations, elevators (replacing mechanisms for frequency-regulated drives);
  • replacement of hydropower units with ones with a higher efficiency rate, modernization of automatic control and excitation systems;
  • modernization and rehabilitation of hydraulic structures, including service, emergency and repair gates, phased rehabilitation of water intakes and industrial water disposal areas; and
  • replacement of power transformers with energy saving ones, replacement of air circuit breakers with gas-insulated ones (as compressors are phased out).
Better usage of water resources

Better usage of water resources is another way to improve the HPP energy efficiency which helped reduce water discharge above turbine flows and increase carbon-free generation by at least 530 mn kWh in 2018 through the following initiatives:

  • RusHydro, JSC SO UPS and PJSC FGC UES teamed up to optimize the repair schedules for power generation facilities and grids at Sayano-Shushenskaya HPP, which translated into an additional output of 250 mn kWh thanks to the ruling out of water discharge above turbine flows in August 2018;
  • RusHydro efficiently redistributed automatic load-frequency control (ALFC) reserves at the Volga-Kama cascade in a high-water season, which translated into additional output of 200 mn kWh (reducing water discharge above turbine flows by 3.5 cu km); and
  • following its modernization, Zhigulevskaya HPP now operates at full capacity in a high-water season. Its capacity gained 177.5 MW translating into an additional 80 mn kWh in a high-water season.
Energy efficiency of heat

Key ESIEE initiatives in 2018:

  • rehabilitation of power generation facilities (turbo generators, boiler units, secondary equipment) for better cost effectiveness, including steam path improvement, heating surface replacement, sealing off air gas ducts, etc.;
  • rehabilitation of boiler houses, including boiler replacement;
  • replacing existing inefficient capacities through construction and rehabilitation of diesel power plants;
  • modernization of lighting systems based on high-performance illuminants and light control systems; and
  • modernization and scheduled maintenance with a view to extending the operational life of the equipment.

Key technical arrangements for improving energy efficiency in 2018:

  • energy audits; and
  • optimized operating modes for the equipment and systems by redistributing loads and matching the plant mix to its operating mode.
Energy efficiency of electrical grids

Key ESIEE initiatives in 2018:

  • replacement of wires with heavier-gauge ones at overloaded power transmission lines and replacement of overhead power lines with self-supporting insulated wires; and
  • replacement of underloaded and overloaded transformers.

To reduce grid losses and optimize energy consumption, the Company kept on installing commercial-grade electricity and heat meters while also modernizing and introducing the automated electric power accounting system.

Energy efficiency of heating grids

Key ESIEE initiatives in 2018:

  • comprehensive equipment modernization at heat substations; and
  • rehabilitation of heat pipelines using heat proof materials.

TPPs heavily rely on electricity for own consumption accounting for a hefty 10–16% of RusHydro Group’s electricity generation. By contrast, HPPs rarely consume more than 1.5%.

Efficiency of energy utilization
Own consumption by energy resource in 2018 [302-1]
Non-renewables In-kind RUB mn
Electricity consumption, mn kWh 6,579 1,624.48
Heat consumption, Gcal 716,422 142.16
Boiler and furnace fuels, tonnes 17,687,304 63,771.16
Motor gasoline, l 5,619,939 224.20
Diesel fuel, l 23,566,189 1,069.68
Natural gas, cu m 6,365,269 6,555.12

JSC RAO ES East’s subsidiaries mainly use coal, natural gas and fuel oil along with some other non-renewables, including diesel fuel and firewood.

As for renewables, geothermal steam from the Mutnovskoye hydrothermal deposit in the Kamchatka Territory is used, with consumption standing at 308,065 GJ.

The fuel mix of JSC RAO ES East’s TPPs remained virtually unchanged. Gas consumption also remains flat over the years, which contributes to better environmental conditions across its footprint, including lower greenhouse gas emissions as well as ash and slag waste.

In 2018, RAO ES East’s TPPs produced more electricity as compared to 2017 marginally increasing their consumption, with DGK accounting for the bulk of electricity generation. In 2018, its electricity output rose by 4.4% y-o-y, or 1,099 mn kWh (2017: 24,758 mn kWh).

In 2018, the ESIEE helped RusHydro and its subsidiaries (HPPs) save 41,443,000 kWh on own consumption and additionally generate 56,915,000 kWh, having spent RUB 2,874 mn on energy saving and energy efficiency initiatives.

RAO ES East Subgroup’s companies DGK, JSC DRSK, PJSC Kamchatskenergo, PJSC Magadanenergo, PJSC Mobile Energy, PJSC Sakhalinenergo, JSC Sakhaenergo, JSC Teploenergoservis, JSC Chukotenergo, JSC UESK, PJSC Yakutskenergo. spent RUB 2,153 mn in 2018 under their respective programs for energy saving and improving energy efficiency, with annual economic benefits amounting to RUB 444 mn, or 59,303 tonnes of equivalent fuel.

Fuel consumption in 2016–2018
RAO ES East Subgroup’s consumption per unit of equivalent fuel [302-3]
Indicator 2016 2017 2018
Consumption per unit of equivalent fuel for electricity generation, g/kWh 385.319 385.174 385.858
Consumption per unit of equivalent fuel for heat generation, kg/Gcal 161.216 159.867 160.084
Energy savings by RAO ES East Subgroup’s [302-4]
Energy resource saved 2016 2017 2018
Natural gas, ‘000 cu m 446 270 4,328
Diesel fuel, tonnes of natural fuel 7 45 46
Other fuel, tonnes of equivalent fuel 18,045 27,467 29,322
Heat, Gcal 19,482 27,868 28,443
Electricity, ‘000 kWh 70,610 87,151 91,099
Plans to improve energy efficiency in 2019

In 2019, RusHydro and its subsidiaries (HPPs) plan to spend RUB 16,235 mn on energy saving and energy efficiency initiatives, which is set to bring RUB 1,985 mn kWh of annual benefits.

RAO ES East Subgroup’s companies DGK, JSC DRSK, PJSC Kamchatskenergo, PJSC Magadanenergo, PJSC Mobile Energy, PJSC Sakhalinenergo, JSC Sakhaenergo, JSC Teploenergoservis, JSC Chukotenergo, JSC UESK, PJSC Yakutskenergo. plan to spend RUB 2,262.75 mn under their updated ESIEEs for 2019–2024, which is set to bring RUB 519.06 mn of annual benefits.

Energy saving initiatives in cooperation with stakeholders in 2018

In 2018, RusHydro held energy audits at 12 branches: Volzhskaya HPP, Votkinskaya HPP, Dagestan branch, Zhigulevskaya HPP, Kamskaya HPP, Kabardino-Balkaria branch, Cascade of Verkhnevolzhskiye HPPs, Cascade of Kubanskiye HPPs, Karachay-Cherkessia branch, Nizhegorodskaya HPP, Novosibirskaya HPP, Saratovskaya HPP and two power generating subsidiaries (Geoterm and HPP-3 of PJSC KamGEK).

As a result, all branches and subsidiaries being audited now have energy performance certificates, programs for energy saving and improving energy efficiency and audit reports with recommendations.

In 2018, PJSC Yakutskenergo’s integrated management system was recertified for compliance with four international standards, including ISO 50001. No material inconsistencies were identified by the audit which confirmed the continuous success of its energy management system. PJSC Yakutskenergo’s certificate No. RU229041EN for compliance with ISO 50001:2011 issued by Bureau Veritas Certification Rus on August 24, 2016 was extended untill August 23, 2019.

Building a lean consumer behavior model

RusHydro Group promotes energy saving awareness arranging for training events at schools.

In line with the national policy for energy saving and improving energy efficiency, RusHydro’s PJSC Ryazanenergosbyt assists the Ryazan Region in implementing the Development of Utilities Infrastructure, Energy Saving and Improving Energy Efficiency for 2015–2020 state program approved by Resolution No. 314 of the Government of the Ryazan Region of October 29, 2014.