Electricity and heat generation

2018 saw a new record for the Group’s electricity generation. In the reporting period, the Group’s power generation, including Boguchanskaya HPP, added 2.8% year-on-year, peaking at 144.3 bn kWh. According to the System Operator of the Unified Energy System, last year saw the growth in Russia’s electricity generation and consumption by 1.7% and 1.6%, respectively. The Group’s electricity generation made up 13.2% of the Russian total power generation, demonstrating an upward trend for the fourth year in a row.

Electricity generation, bn kWh
Generation structure by regulatory regime,
GWh  [EU2]

In 2018, the electricity generation at the Group’s HPPs, PSPPs, and geothermal power plants increased by 2% year-on-year, reaching 109.8 bn kWh. During the same period, the electricity generation at the Sevan–Hrazdan Cascade HPPs in Armenia fell by 11.5%, accounting for 412 mn kWh.

The Group’s thermal power plants in the Far East demonstrated a positive trend with their generation of 31.7 bn kWh, up 3.9% year-on-year. The Group’s wind, solar and geothermal power plants generated 431 mn kWh, while the heat supply stood at 29.9 mn Gcal.

In 2018, the main factors affecting the Group’s electricity generation and heat supply included:

  • water inflow to most Volga and Kama reservoirs at a level higher than the long-term annual average;
  • water inflow to HPPs in Siberia at the same or slightly higher level than the long-term annual average; water inflow to HPPs in the South of Russia at a level equal to the long-term annual average;
  • growing electricity generation at TPPs in the Far East, up 5.0% (to 34,464 mn kWh) due to the year-on-year drop in electricity generation at HPPs in UES of the East and a 3.7% increase in electricity consumption in the Far East;
  • heat output of 29.650 mn Gcal, down 0.9% year-on-year, by the Group’s power plants and boiler houses in the Far Eastern Federal District due to higher actual outdoor temperatures across the Far East but for the Kamchatka Territory.
Generation structure by primary energy source,
GWh  [EU2]

Measures for simplifying utility connection to electrical grids [EU23]

In 2018, the Group’s businesses were involved in implementing the Target Model for Utility Connection to Electrical Grids approved by the Russian Government’s Decree No. 147-r On target models for simplifying business procedures and enhancing investment appeal of the Russian regions dated January 31, 2017 (the “Program”).

The project seeks to simplify the procedure for utility connection (the “UC”) for legal entities or sole proprietors requesting the power of up to 150 kW with reliability category 2 and 3 (shorter timing, enabling interaction with the grid company via a personal account without a need to visit the client office). The Group’s participants in the Program comprise JSC DRSK, PJSC Kamchatskenergo, PJSC Sakhalinenergo, PJSC Magadanenergo, JSC Chukotenergo and PJSC Yakutskenergo.

The Program made it possible to introduce an online service to the energy companies’ websites featuring personal accounts for the applicant to interact with the grid company and to make preliminary calculations of the UC cost (UC tariff calculator), apply for a UC, receive a UC contract and sign the necessary UC documents, including their electronic versions.

The applications filed by the applicant through the Personal Account differ in their share, with, for example, 1% at JSC Chukotenergo, 17% at JSC DRSK and 44% at PJSC Sakhalinenergo.

Heat supply,
‘000 Gcal  [EU2]
HPP and TPP installed capacity utilization factor (ICUF)Excluding RES ICUF., %