Vyacheslav Y Sinyugin - Power Industry in Russia

8/3/2019 Vyacheslav Y Sinyugin - Power Industry in Russia

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V. Yu. Sinyugin, Chairman of the Board

ederal Hydrogeneration Companynergy and Climate Change Conference

Montreal, May 31, 2

Prospects for the power industry

in Russia

amidst the global fight against climate

change


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Key trends affecting the development

of the power industry in Russia

World fight

against climatechange

Liberalization ofpower markets

power industry

reform

Increased prices

of hydrocarbon fuel

Russian power industry


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Russias electricity industry (~ 210 GW):

current structure of the Russian power market

FGCSystem

perator

44 Federal

Power

Stations

(including8 under

construction)

Russian

Federation

Minority shareholders

of the Parent Company

RosEnergoAtom

Government

10 Nuclear Power

Stations

73 AO-energos

from 49% to 100%

52% 48%

100% 100% from 50% to 100%

Independent

4 AO-Energos

Generation

Transmission

(220 KW

and higher)

Supply

Dispatch

ing

Services

Distribution

(110 KW

and lower)

ITC IDC

6 thermal WGC

TGC

RAO UES of RUSSIA (~ 156,2 GW):

1 hydro WGC(HydroOGK)

Trading:ATS

ATS Administrator of Trade System

FGC Federal Grid Company

ITC Interregional Transmission Company

IDC Interregional Distribution Company

WGC Wholesale Generation Company

TGC Territorial Generation Company


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Generation

Liberalization of the power markets substance of the

RAO UES of Russia reform

OBJECTIVES:

OBJECTIVES:

N

atu

ral

mo

nopolies

Dispatching

Trunk networks

ompe

ve

sectors

Power distributionMarket rules

Regulatedtariffs

The Government as regulator

December 24, 2004: The Russian Government decided:the RAO UES reorganization is to be completed in 2006

Create market players

Move to market pricing principles

Reorganize infrastructure for market

functioning Secure non-discriminatory access to

networks

Distribution networks


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Target model

ATS Administrator of Trade SystemFGC Federal Grid Company

ITC Interregional Transmission Company

IDC Interregional Distribution CompanyWGC Wholesale Generation Company

TGC Territorial Generation Company

Privateshareholders

Government

Market infrastructure

FGC

75%

Generation capacity

Other generation companie

Formed from the

Independent AO-energos

Nuclear power

generation company

Hydro

WGC (1)

Thermal

WGC (6)GC (14)

75-100% 51%

System

Operator

75%

ATS

50%votes

ITC (4)

52%

Competitivemarket


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ight against climate change development of renewable energ

sources. The foundation of RES in Russia

Russias energy strategy until 2020 (approved by the Russian Government, decision # 1234-r of

August 28, 2003)

Envisages development and intense use of RES

Russias Federal Law on Energy Saving, # 28-FZ (approved by the State Duma on April 3, 1996)

Defines energy saving principles, areas and tools

Federal Targeted Program Energy Efficient Economy until 2010 (approved by the Russian

Government on November 17, 2001)

Developed and implemented under the Federal Law on Energy Saving

No law on renewable energy sources has yet been developed

Kyoto Protocol (ratified by the State Duma on October 22, 2004)The signing of the Kyoto Protocol will enable Russia to use the international mechanism of

discharge quota trading and use the earnings to develop RES technology


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HydroOGK a tool to harness RES

Company configuration

Approved by the Chairman of the Russian Government, Mikhail E. Fradkov,on October 25, 2004.

Development results, 2006

Stations 49

Staff 3,665

Installed capacity 22.6 GW

Siberian and Far Eastern HPP,

5 HPP, 8,876 MW

North Caucasus HPP,34 HPP, 2,516 MW

Zagorskaya HPSP,1,200 MW

Volga-Kama Chain of PowerPlants, 9 HPP, 10,058 MW


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HydroOGK Holding Company relative position in

Russia and the world

OGK 5

OGK 6

OGK 2

TGK 3

OGK 1

HydroOGK

Rosenergoatom

10,6

9,8

9

8,7

8,6

22,6

23,2 Hydro Quebec

HydroOGK

EDF (group)

Enel

Statkraft

CHESF

Furna CE

Vattenfall

IBERDROLA

CESP 7

9

10

11

11

21

31

14 (45)

8 (15)

22,6

Installed capacity in

RUSSIA, GW

Installed hydraulic capacity in the

WORLD, GW


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HydroOGKs mission and objectives

HydroOGKsmission

HydroOGKs

objectives

1. Increase the companys value

2. Ensure the system reliability of the UnitedEnergy System of Russia

3. Ensure sustainable development of RES

and environmental safety

Effectively use Russias hydraulic resources,

maintain the reliability of the United Energy

System of the Russian Federation, and extend

the use of renewable new energy sources for

the good of the shareholders and society


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Russias hydraulic potential, degree of its development,

and key current projects

Boguchanskaya HPP3000 MW

Zelenchukskaya HPP

320 MW

European

Russia 48.2%

Siberia

24.8%

Far East

3%

ll current major projects arelanned to be finished by 2010:

20092000ureiskaya HPP

2007800ganaiskaya HPP

2007320elenchuskaya HPP

20103000oguchanskaya HPP

Launch

year

(plan)

Installed

capacity,MW

tation

HydroOGK specialists have designed a program to build mini hydro power plants with a

total installed capacity of 1,230 MW in difficult-to-reach areas of eastern Russia

Bureiskaya HPP2000 MW

Irganaiskaya HPP800 MW


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Priority projects: Bureiskaya Hydropower Plant

By 2009, Bureiskaya should become the largest power station in Russias Far East.

Its rated capacity is 2,000 MW, with three out of six generators with a combinedcapacity of 670 MW already in operation.

The fourth hydraulic generator is to be launched in late 2005.


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Priority projects: Boguchanskaya Hydropower Plant

Efforts are current underway to identify potential sources of funds to build up theBoguchanskaya Hydropower Station (rated capacity: 3,000 MW). The total amount of

investment needed to complete the project is estimated at USD 1.8-2.0 billion


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RES prospects in Russia: Wind farms(All operating wind Power Plant ~ 14 MW)

Sea-basedKaliningradskaya Wind

Power Plant (50 MW)

Kulikovskaya WindPower Plant (2.1 MW)

Elista (2 MW)

Chukotka

(2.5 MW)

Vorkuta(1.5 MW)

Rostovenergo

(370 MW )

Chuvashenergo

(214 MW )

Bering Island

(500 MW)

Average annual wind velocityless 3 m/s

from 3 to 5 m/sover 5 m/s

Leningradskaya WindPower Plant (75 MW)

Bashkiria

(2.2 MW)

Primorskaya Wind

Power Plant (Nakhodka,

Vostochni Port) (10 MW)

Operating wind farms > 1 MW Operating wind farms < 1 MW New projects


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RES prospects in Russia: Tidal power

urrent projects

Kislogubskaya Tidal Power Plant with an installed capacity

of 400 kW ( Barents Sea Coast, 90 km from Murmansk) is a

tidal power research base

Location: Mezenski Bay (White Sea). Tides are 10.3 m. Relatively close is

Sevmash, a producer of tidal generating units.

Proposed capacity: 15 GW, proposed annual output: 40b kWh. Potential users:

diamond mining companies in the Belomorsko-Kuloiskoe Plateau; potential

exports of surplus power to Western Europe.

Location: Tugurski Bay (in the south of the Sea of Okhotsk). Average tidal size

the entrance to the bay is 4.74 m.

Proposed installed capacity: 7.98 GW, proposed annual output: 20b kWh. The

aim of the project is to help reduce the production, transportation and burning

fuel by Far Eastern thermal power plants by 7m tons of equivalent fuel; providerenewable power to the entire region , including South Korea, Japan and China.

Investment is estimated at USD 1,055 per 1 kWh of installed capacity.

Mezenskaya

idal Power Plant

Tugurskaya

idal Power Plant


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Next steps to develop renewable power: 2005 2006

Participate in drafting a law on RES for submission to the State Duma of the Russian

Federation

Draft amendments and changes for the Law on Energy Saving, the Law on the ElectricPower Industry, and laws that regulate the electricity reform in Russia

Develop laws and regulations to implement renewable energy projects

Work through the issue of launching a green certificate system

Put into place a regulatory framework to launch a 2 discharge trade mechanism

Develop new renewable energy projects:

Conventional hydropower stations of various sizesWind farms

Tidal plants

Other kinds of RES


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THANK YOU

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Vyacheslav Y Sinyugin - Power Industry in Russia