Inter RAO Group announced operating results for the first three months of 2015.


Generation across the Group
Indicator First three months of 2015 First three months of 2014 +/-
Installed power generation capacity at the end of the reporting period, GW 34.973 34.336 +1.9%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 26.499 27.022 -1.9%
Power generation, billion kWh 37.434 37.811 -1.0%
Utilization of installed capacity 49.8% 51.8%
Heat delivery from collectors, million Gcal 15.332 16.510 -7.1%

Russian generation
Indicator First three months of 2015 First three months of 2014 +/-
Installed capacity at the end of the reporting period, GW 29.008 28.371 +2.2%
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 25.819 26.342 -2.0%
Power generation, billion kWh 33.796 33.271 +1.6%
Utilization of installed capacity 54.3% 55.4%
Heat distribution from collectors, million Gcal 15.231 16.396 -7.1%

Installed power generation capacity of power stations operated by Inter RAO Group increased in 2014 following the launches of approximately 1.6 GW of facilities to support Capacity Delivery Agreements. These include the newly constructed Power Generation Unit 2 at Yuzhnouralskaya TPP-2, rated at 417 MW, and Power Generation Unit 8 at Cherepetskaya TPP, rated at 225 MW; the newly certified Power Generation Unit 9 with similar specifications; and the rehabilitated turbine generators at Omskaya TPP with increased power generation capacity. At the same time, the power generation capacity of Yuzhnouralskaya TPP and Verkhnetagilskaya TPP was reduced by 276 MW altogether, and the capacity of Bashkir power plants was reduced by 11 MW altogether due to retirement of inefficient legacy equipment.

Reduction of installed heat production capacity also resulted from the retirement of legacy assets.

The increase in power generation by Russian assets of Inter RAO Group primarily results from the launches of new facilities. However, certain power plants reduced their output due to lower utilization of commercially unsustainable power generation units in order to cut losses (through the use of Selection of Active Generation Equipment technology), and also due to a larger amount of repairs at power generation units in 2015.

Reduction of heat output reflects warmer weather in the winter of 2015.


International generation
Indicator First three months of 2015 First three months of 2014 +/-
Installed capacity at the end of the reporting period, GW 5.965 5.965 -
Installed heat production capacity at the end of the reporting period, thousand Gcal/hour 0.68 0.68 -
Power generation, billion kWh 3.638 4.541 -19.9%
Utilization of installed capacity 28.2% 35.2%
Heat distribution from collectors, million Gcal 0.102 0.113 -10.1%

The most significant drop in production is attributable to Ekibastuzskaya TPP-2 in Kazakhstan, and it reflects lower demand for electricity produced by power plants with significant investment tariff. Razdan TPP in Armenia also contributed to the overall reduction due to insufficient utilization of installed capacity by the operator of the energy system. However, power plants in other countries increased their output: Moldova TPP increased deliveries from Transnistria to Moldova due to discontinuation of deliveries from Ukraine, while hydro plants in Georgia increased their output due to heavy precipitation in 2015.


Russian sales
Indicator First three months of 2015 First three months of 2014 +/-
Consumer base, million 12.654 12.409 +2.0%
Retail electricity sales, billion kWh 45.429 43.186 +5.2%
16.0% 15.2%

Share of Russian retail market is defined as the ratio of retail sales to total actual electricity consumption (283.8 billion kWh in the first three months of 2015 compared to 283.2 billion kWh in the first three months of 2014 according to the System Operator of the Unified Energy System of Russia)

The increased performance of Russian sales assets primarily reflects the expansion of the geographical presence of suppliers of last resort within the Group in February and March of 2014 (in Omsk and Oryol oblasts), and the acquisition of new industrial and residential consumers across all regions. The largest improvement among the suppliers of last resort is attributable to Moscow Energy Sales Company as it reacquired some of its large accounts, such as LiAZ, ZiO-Podolsk or KNAUF Insulation.


International distributors and grid operators (Georgian Telasi and Electric Networks of Armenia):
Indicator First three months of 2015 First three months of 2014 +/-
Total length of power lines, km 36,330 35,792 +1.5%
Electricity deliveries to the grid, billion kWh 2.294 2.301 -0.3%
Electricity losses 11.5% 12.6%

The length of our transmission lines increased due to infrastructure rehabilitation and upgrades, and new grid connections. Our power deliveries in Georgia increased by 7.9% to 658 million kWh due to increased power consumption as Telasi acquired two large transit accounts providing street lighting and mass transit power supply services. However, Electric Networks of Armenia reported a significant reduction in power consumption (mostly by residential consumers)-a drop of 3.2% to 1.637 billion kWh.


Commercial electricity import and export by Inter RAO Group across Russian border:
Indicator First three months of 2015 First three months of 2014 +/-
Export, million kWh 5.388 3.719 +44.9%
Including:
Finland 1,806 719 +151.3%
Ukraine 1,239 11 +11,202.6%
Lithuania 841 618 +36.0%
China 575 801 -28.2%
Kazakhstan 432 441 -2.2%
Georgia 239 216 +10.8%
Belarus 139 781 -82.2%
Mongolia 56 73 -23.4%
South Ossetia 47 46 +2.3%
Azerbaijan 15 14 +8.7%
Import, million kWh 328 758 -56.7%
Including:
Kazakhstan 262 715 -63.4%
Lithuania 28 10 177.0%
Azerbaijan 24 25 -3.3%
Mongolia 14 8 +81.3%
Georgia 0.00711 0
Finland 0 0.234

Electricity export spiked due to appreciation of euro against ruble resulting in more profitable and greater deliveries to Finland and Lithuania. Reduction of export to Belarus reflects lower demand for Russian electricity due to larger power generation by Belarus power plants.

Import from Kazakhstan reduced due to economic reasons, most importantly currency depreciation. Import of electricity from Finland to Russia in 2014 was a part of reverse power supply system test; these deliveries were reversed in 2015.

***

Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and the leading Russian energy company by energy efficiency. Inter RAO Group owns and operates over 35 GW of installed power generation capacity. www.interrao.ru


distributed by