Inter RAO Group announced operating results for the full year 2015.

Generation across the Group:

Indicator

2015

2014

+/-

Installed power generation capacity at the end of the reporting period, GW

34,968

35,038

-0,1%

Installed heat production capacity at the end of the reporting period, thousand Gcal/hour

26,352

26,844

-1,8%

Power generation, billion kWh

140,796

146,047

-3,6%

Utilization of installed capacity

46,0%

48,7%

-

Heat distribution from collectors, million Gcal

39,613

41,598

-4,8%

Russian generation:

Indicator

2015

2014

+/-

Installed capacity at the end of the reporting period, GW

29,003

29,073

-0,2%

Installed heat production capacity at the end of the reporting period, thousand Gcal/hour

25,672

26,164

-1,9%

Power generation, billion kWh

127,163

131,570

-3,3%

Utilization of installed capacity

50,2%

53,1%

--

Heat distribution from collectors, million Gcal

39,361

41,333

-4,8%

The following major factors affected the key performance indicators of the Generation segment:

  • Retirement of 362 MW of low-efficiency legacy power generation equipment in Russia
  • Launch of 225 MW Unit No. 9 at Cherepetskaya TPP, and rehabilitation of Turbine Generator No. 2 at Omskaya TPP-5 resulting in the increase of its installed capacity to 100 MW
  • Several capacity enhancement projects resulting in a 69.2 MW increase in the installed capacity of high-efficiency power generation units

Installed power generation capacity of the power plants of Inter RAO Group reduced by 70 MW in 2015. This change reflects the accelerated retirement of legacy low-efficiency equipment relative to the addition of new and rehabilitated power generation units. In particular, we retired 176 MW at Verkhnetagilskaya TPP, 100 MW at Yuzhnouralskaya TPP, 36 MW across our power plants in Bashkortostan, and 50 MW at Omskaya TPP-4. We have also reduced the installed capacity of the first power generation unit at Dzhubginskaya TPP by 2.7 MW to reduce start-up costs. At the same time, we added 294.2 MW of new and rehabilitated capacity:

  • We launched the 225 MW Unit No. 9 at Cherepetskaya TPP under the CDA program, and completed the rehabilitation of Turbine Generator No. 2 at Omskaya TPP-5 adding 20 MW to its capacity
  • The relabeling of power generation equipment resulted in 25 MW capacity increase at Kaliningradskaya TPP-2; 14.4 MW increase at Urengoyskaya TPP; and 9.8 MW increase at Yuzhnouralskaya TPP-2.

Our installed heat production capacity reduced in 2015 by 492.2 Gcal/hour, mostly for the same reasons.

Russian power generation assets of Inter RAO Group reduced power generation due to longer repairs in summer 2015 compared to summer 2014, and also due to optimized utilization of unprofitable and low-margin equipment during low price periods at the Next-Day Market.

Reduced heat delivery also reflects warmer weather in 2015.

International generation:

Indicator

2015

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

13,633

14,477

-5,8%

Utilization of installed capacity

26,1%

27,7%

--

Heat distribution from collectors, million Gcal

0,252

0,265

-4,8%

The most significant drop in production is attributable to Ekibastuzskaya TPP-2 in Kazakhstan, reflecting lower market demand for electricity produced by power plants with higher investment tariff. Razdan TPP in Armenia also contributed to the overall reduction as per decisions of the Energy System Operator. However, our Trakya TPP in Turkey increased its output by more than 10% due to its higher utilization by the system operator, and shorter maintenance downtime than in 2014; Moldova TPP increased its output by more than 18% as it delivered more power from Transnistria to Moldova (due to discontinuation of Ukrainian supply); while our Khrami hydro plants in Georgia increased their output due to heavy precipitation in 2015.

Russian sales

Indicator

2015

2014

+/-

Consumer base, million

12,749

12,502

+2,0%

Retail electricity sales, billion kWh

165,865

164,923

+0,6%

Share of Russian retail market*

16,0%

15,8%

--

* Share of Russian retail market is defined as the ratio of retail sales to total actual electricity consumption (1 036,4 billion kWh in 2015 compared to 1 040,5 billion kWh in 2014 according to the System Operator of the Unified Energy System of Russia)

The performance of our Russian sales assets primarily reflects the geographic expansion of RN Energy. In addition to that, St. Petersburg Energy Sales Company started serving residential customers of Oboronenergosbyt and, as well as Moscow Energy Sales Company, started serving new residential communities and picked up customers from third parties (mostly real estate management companies).

International distributors and grid operators (Georgian Telasi and Electric Networks of Armenia):

Indicator

2015

2014

+/-

Total length of power lines, km

36 562

36 330

+0,6%

Electricity delivery to the grid, billion kWh

8,626

8,457

+2,0%

Electricity losses

9,9%

11,0%

-

We added 233 kilometers to our transmission lines in Georgia as we built new grid connection lines and new redundancy lines. Increased power deliveries also reflect the performance of Telasi as it supported growing power consumption by residential and commercial consumers (including the addition of two large consumers - a municipal street lighting authority and a power supplier to Tbilisi rapid transit).

Commercial electricity import and export by Inter RAO Group across Russian borders:

Indicator

2015

2014

+/-

Export, million kWh

17 492

14 043

+24,6%

Including:

Finland

3 383

2 995

+13%

China

3 299

3 376

-2,3%

Lithuania

2 995

3 216

-6,9%

Belarus

2 815

1 425

+97,6%

Ukraine

2 462

178

13,8x

Kazakhstan

1 542

1 644

-6,2%

Georgia

511

627

-18,5%

Mongolia

284

390

-27,1%

South Ossetia

146

140

+4,0%

Azerbaijan

55

53

+3,4%

Import, million kWh

1 464

3 453

-57,6%

Including:

Kazakhstan

990

3 084

-67,9%

Georgia

170

160

+5,9%

Lithuania

115

43

+165%

Azerbaijan

108

134

-19.2%

Mongolia

54

30

+78,4%

Finland

23

0,234

98x

Ukraine

3,8

0

-

Belarus

0,058

0,26

-77,6%

Our electricity export surged due to appreciation of euro against Russian currency, resulting in higher profitability of sales to Finland. However, our sales to Lithuania reduced despite their growing profitability due to tougher competition from suppliers of electricity from other countries, lower prices in Lithuania - Nord Pool Spot and higher prices in Russia (especially in peak hours). We were able to increase our deliveries to Belarus as we signed a new agreement with our partners in 2015. Our deliveries to Ukraine were covered by the agreement on concurrent operation of energy systems and a market agreement with Ukrinterenergo that was in place until December 31, 2015.

Our import from Kazakhstan reduced due to currency depreciation and prevailing market conditions.

* * *

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 approximately 35 GW of installed power generation capacity. www.interrao.ru


OAO INTER RAO UES issued this content on 05 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 February 2016 07:07:13 UTC

Original Document: http://www.interrao.ru/en/news/company/?ELEMENT_ID=5582