Reliability and safety of production facilities

RusHydro Group’s reliability and safety policy [103-2]

One of RusHydro Group’s strategic goals is to provide reliable power supply that will be safe for people, environment in which the equipment operates, hydraulic structures, and production facilities.

The RusHydro Group’s Technical Policy defines requirements for the integrated process safety management system, including the industrial safety management subsystem.

The following documents were developed and adopted as part of the industrial safety management system:

  • Standard Regulations on In-Process Monitoring of Compliance with Industrial Safety Requirements at Subsidiary’s Hazardous Production Facilities approved by RusHydro’s Order No. 190 of March 11, 2015;
  • RusHydro’s In-Process Monitoring Information System (“IPMIS”) commissioned by RusHydro’s Order No. 1170 of November 27, 2013. The IPMIS has been deployed across all RusHydro’s branches;
  • Integrated analytical database recorder (KRAB-3) improving monitoring efficiency and automating the recording, analysis, and planning of measures prescribed by federal, institutional and internal health, industrial and fire safety supervisory bodies. The recorder was commissioned by Decree No. 467r of December 8, 2015 On Using a Data Reporting Form – Integrated Recorder for the Analytical Database of Supervisory Activities. Decree No. 157r of May 14, 2018 On Using a Data Reporting Form – Integrated Recorder for the Analytical Database of Supervisory Activities redistributed the responsibilities for the KRAB-3 recorder and monitoring compliance with supervisory bodies’ instructions among departments of the Production Unit at RusHydro’s HQ.
  • RusHydro’s methodology of identification, classification and recording of hazardous production facilities in the State Register of Hazardous Production Facilities with due regard to operational risks and new requirements of the Russian laws on industrial safety (the “Methodology”) approved by the Federal Environmental, Industrial and Nuclear Supervision Service of Russia (Rostechnadzor) as compliant with Russian industrial safety laws (Rostechnadzor letter No. 00-02-07/1695 of September 29, 2014).
  • RusHydro’s Regulations on the Reliability and Safety Management System for Hydraulic Structures and Hydroelectric Power Plants (approved by RusHydro’s Order No. 515 of August 8, 2017).

The industrial safety priorities are:

  • to continuously enhance and improve industrial safety of the Company’s hazardous production facilities in line with the global best practices by ensuring timely upgrades of process equipment and its safe, reliable and trouble-free operation;
  • to establish and maintain an efficient on-site safety monitoring system to enable industrial safety planning and tackling major challenges faced by the Company.

Meeting the above industrial safety goals helps reduce industrial risks associated with hazardous production facilities as a result of better process control, quality of repairs and industrial safety audits.

Ways of ensuring reliable and safe facility operation include:

  • quality assurance at design and construction phase;
  • external regulatory supervision;
  • internal process monitoring;
  • compliance with industry and corporate operating standards and procedures;
  • implementation of the Technical Policy and engineering system controls.

In pursuance of RusHydro’s Decree No. 50r of February 22, 2018 On the Approval of Target Audit Schedule, Production Unit departments performed target audits of branches and subsidiaries to improve the effectiveness and control of process compliance with applicable safety requirements.

The dual control and monitoring of compliance with industrial safety requirements at hazardous production facilities – both internally and externally (by state supervisory bodies) – secures efficient control over safety and reliability of existing assets.

Allocation of industrial safety responsibilities
Functions Responsible
  • General control of compliance with industrial safety requirements at hazardous production facilities of RusHydro and production subsidiaries;
  • Methodological support and coordination of industrial safety efforts at the Company’s hydropower facilities, including recording of violations, emergency prevention and response;
Boris Bogush, Member of the Management Board, First Deputy Director General — Chief Engineer
  • Setting up and running internal controls of compliance with industrial safety requirements at hazardous production facilities and hydropower facilities of RusHydro and its production subsidiaries;
  • Coordination and control of HQ units, branches and subsidiaries as regards in-process monitoring and compliance with industrial safety requirements;
  • Methodological support of the Company’s branches and subsidiaries as regards in-process monitoring of compliance with industrial safety requirements, operation of industrial safety management systems;
  • Control over the development and implementation of action plans by Company branches and subsidiaries, to eliminate industrial safety gaps identified by supervisory bodies, as well as annual industrial safety action plans.
Industrial and Fire Safety Office of the Industrial and Occupational Safety Department
  • Ensuring operation of hazardous production facilities as required by the Russian laws and RusHydro Group’s internal regulations;
  • In-process monitoring along with the development and implementation of industrial safety efforts.
Industrial and occupational safety functions in branches and subsidiaries

All of RusHydro Group’s production facilities have put in place regulations on in-process monitoring of compliance with industrial safety requirements at hazardous production facilities. RusHydro Group has 478 hazardous production facilities registered in the State Register of Hazardous Production Facilities, including: 177 RusHydro’s hazardous production facilities and 301 subsidiaries’ hazardous production facilities.

Accident rate at RusHydro Group’s facilities

RusHydro Group accident rate was down 11.5% year-on-year. The vast majority of accidents (over 90%) occurred at RusHydro Group’s grid facilities. In 2018, most accidents (52%) were caused by adverse weather conditions, third parties, animals, or birds. 21% of accidents were due to untimely or insufficient equipment maintenance and repair.

Number of accidents across RusHydro Group
Causes of accidents in 2018, %
System Average Interruption Frequency Index (SAIFI) The System Average Interruption Frequency Index (SAIFI) is calculated using the formula (∑li*Ni)/NT, where li is the failure rate, Ni is the number of customers for location i, and NT is the total number of customers served. The index is calculated for the entire location served. [EU28]
Grid subsidiaries 2016 2017 2018
JSC UESK 0.31 0.20 0.35
PJSC Kamchatskenergo 0.557 2.05 1.318
JSC Sakhaenergo 12.9 11.43 11.79
PJSC Yakutskenergo 4.726 3.26 3.76
PJSC Sakhalinenergo 31.955 12.84 6.21
PJSC Magadanenergo 2.60 1.83 2.30
Far Eastern Distribution Company 3,70 6.39 6.22
JSC Geoterm 6.70 9.00 1.23
JSC Chukotenergo 4.72 6.99 5.26
PJSC Mobile Energy 0.005 0.0043 0.0054
System Average Interruption Duration Index (SAIDI) The System Average Interruption Duration Index (SAIDI) is calculated using the formula 1), where Ni is the number of customers and Ui is the annual outage time for location i, and NT is the total number of customers served. The index is calculated for the entire location served. [EU29]
Grid subsidiaries 2016 2017 2018
JSC UESK 2.14 2.14 1.31
PJSC Kamchatskenergo 3.25 5.08 1.86
JSC Sakhaenergo 45.54 44.90 35.88
PJSC Yakutskenergo 4.93 8.91 9.05
PJSC Sakhalinenergo 18.34 39.30 20.97
PJSC Magadanenergo 7.83 4.33 5.45
Far Eastern Distribution Company 9.19 13.22 26.03
JSC Geoterm 10.80 7.20 0.48
JSC Chukotenergo 60.06 52.51 50.17
PJSC Mobile Energy 2.5 1.9 2.6
Program of Stable Power Grid Operation in the Sakhalin Region
  • The Sakhalin Region has one of the most troublesome power grids in terms of power outages, as the island is exposed to violent winds and heavy snowfalls.
  • As instructed by Minutes No. YUT-P-9-13 of March 18, 2016 of the meeting at the office of Yury Trutnev, Deputy Prime Minister of the Russian Federation and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, the Government of the Sakhalin Region and RusHydro Group developed the Program of Stable Power Grid Operation in the Sakhalin Region.
  • The Program is expected to help tackle the key issues causing disruptions in Sakhalin’s power grid, including inadequate design solutions used in the construction of high-voltage overhead power lines, which do not take into account actual local weather conditions, as well as increasing wear and tear of the equipment and power transmission lines.

The Program saw 55 priority projects listed with respect to PJSC Sakhalinenergo’s (included in RusHydro Group) area of responsibility and operation, including renovation/construction projects for 35–220 kV overhead power lines (33 lines, 936 km) and 22 substations (789 MVA). With total investments over a ten-year horizon estimated at RUB 40 bn, the projects are now facing a financing shortage of RUB 25 bn. The Program has been approved by the Government of the Sakhalin Region, Russian Ministry of Energy and PJSC RusHydro. To the extent permitted by tariffs, Sakhalinenergo is implementing the Program as part of its own investment program.

Preparedness for natural disasters and emergencies

RusHydro Group is responsible for reliable and uninterrupted operation of its facilities. To this end, a system was implemented at the Group’s assets to prevent and respond to natural disasters and emergencies. In particular, efforts are made to prevent process upsets and accidents, and if an interruption occurs, the Company does its best to bring the facility operation back to normal as soon as reasonably possible. Furthermore, employees of RusHydro have regular trainings in civil defense and emergency response.

Key potential sources of natural disasters at RusHydro’s production facilities:

  • high magnitude low-frequency flood may result in boosting the headrace, overflowing hydraulic structures, waterfront destruction in junction areas, and a hydrodynamic accident followed by the flooding of adjacent areas;
  • during emergency alerts, there is a risk of electrical grid accidents caused by wire breaks or overlapping and short circuits at transformer stations followed by power outages in residential areas, administrative buildings, and production facilities;
  • river overflowing its banks may cause the flooding and failure of pylons, possibly resulting in power outages in commercial and residential buildings.
  • technological emergencies affecting equipment (including electrolysis plants (hydrogen receivers), gas distribution stations, boiler units and turbo generators) and grid infrastructure may cause interruptions or failures of power and heat generation or supply;
  • accidental oil spill affecting economic assets and people.

In RusHydro Group, the following parties are responsible for the protection of population and territories from emergencies:

  • Situation Analysis Center and Industrial and Occupational Safety Department (as regards fire safety) at the Headquarters. They report to Member of the Management Board, First Deputy Director General – Chief Engineer of the Company;
  • first deputy directors – chief engineers with the direct involvement of civil defense and emergency response engineers reporting to them – at the Group’s branches;
  • employees authorized to deal with the issues of civil defense and protection of population from natural and industrial emergencies – at RusHydro’s subsidiaries.

RusHydro prevents and responds to emergencies in full accordance with regulatory requirements of Russian laws applicable to hydraulic structures and hazardous production facilities. For the purpose of rescue and emergency recovery operations, the Company has established an insurance fund of documentation for RusHydro Group’s hazardous facilities. The insurance fund is held on file by authorities.

All RusHydro Group’s facilities have:

  • action plans for natural and industrial emergency prevention and response, as well as action plans for oil and petrochemicals spill prevention and response approved by local bodies of the Ministry of the Russian Federation for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters (EMERCOM);
  • hydraulic structures safety declarations updated (revised) at least once in every five years subject to obligatory audit of such hydraulic structures by ad hoc commissions in collaboration with design and R&D institutions;
  • facility safety certificates;
  • special machinery for prompt response to potential damage or accidents (for facilities with own (or contractor’s) fire stations);
  • emergency and rescue equipment.

Volunteer emergency response teams and contractors’ professional emergency response teams have been established and maintained at all RusHydro Group’s facilities operating extremely dangerous and highly dangerous hydraulic structures or class 2 and class 3 hazard class facilities with civil defense categories duly assigned.

Functional subsystem of the National Emergency Management System

In pursuance of the Order of the Russian Ministry of EnergyOrder of the Russian Ministry of Energy No. 222 On the Functional Emergency Management Subsystem at Organizations (Facilities) of the Energy Industry and Organizations (Facilities) Subordinate to the Russian Ministry of Energy dated June 9, 2011.

The Company’s emergency prevention and response and fire safety commission (the “Commission”) is the supervisory body of the subsystem responsible for the timely situation assessment and decision-making on emergency prevention. The Commission’s annual action plans stipulate efforts to facilitate the safe passage of flood water during the spring and summer period, prepare for the fall and winter peak loads, and secure the stable operation during the fire and storm seasons. The Commission manages and coordinates the operations of permanent bodies and management bodies responsible for day-to-day operations of the functional subsystem.

Permanent bodies of the Company’s functional subsystem management – the Situation Analysis Center’s team specializing in civil defense, emergency prevention and response, and civil defense and emergency engineers at generating branches and subsidiaries – are responsible for the planning of emergency prevention and response, coordination of emergency prevention and response activities in accordance with laws and regulations of the Russian Federation and internal documents of the Company.

Management bodies responsible for day-to-day operations of the Company’s functional subsystem – the Situation Analysis Center’s duty shift and duty shifts at generating branches and subsidiaries – conduct 24/7 situation monitoring at facilities, give notices of any equipment failures identified, and carry out priority emergency prevention activities.

Local alarm systems are in place at 31 facilities of the Group.

For the purpose of emergency prevention and response, RusHydro established resource stockpiles at its branches operating hydraulic structures and a dedicated financial reserve at RusHydro. The dedicated financial reserve for emergencies was established on a centralized basis in the interests of RusHydro’s branches by transferring 1% of the average monthly revenue from electricity and capacity sales. All subsidiaries have established the required financial reserves and resource stockpiles for emergency prevention and response.

Emergency recovery exercises

Employees are trained in emergency recovery as part of the corporate civil defense and emergency response training program. The list of persons

to be trained was made in accordance with Russian laws and regulations. Pursuant to the schedule for 2018, RusHydro Group conducted:

  • 32 comprehensive exercises;
  • 433 facility-based exercises;
  • 97 table top exercises and training sessions;
  • 60 tactical training exercises.

In 2018, 244 people passed training or advanced professional training at training centers and civil defense courses, including three civil defense managers and 53 chairmen and members of emergency prevention and response and fire safety commissions.

Prevention of injuries and fatalities involving the Company’s assets [EU25]
  • A special occupational safety focus is the prevention of individual injuries arising from interaction with the Company’s assets. This issue is primarily covered through mass media (articles published in printed and online media) and safety lessons at school on hazardous and harmful health impact of various power installations in the event of exposure within the hazard distance.
  • Legal proceedings were launched in 2018 in connection with two individual injuries, including those taking place at JSC DRSK assets. A compensation for moral damages of RUB 200,000 was awarded on one of the cases (injury suffered in 2016), while the second suit was dismissed without hearing.