PMES
MES North-West
Bryanskoye
Vyborgskoye
Karelskoye
Leningradskoye
Novgorodskoye
Severnoye
PMES
MES North-West
Bryanskoye
Vyborgskoye
Karelskoye
Leningradskoye
Novgorodskoye
Severnoye
PMES
MES Centre
Valdaiskoye
Verkhne-Donskoye
Volga-Donskoye
Volga-Okskoye
Vologodskoye
Moskovskoye
Priokskoye
Chernozemnoye
PMES
MES Centre
Valdaiskoye
Verkhne-Donskoye
Volga-Donskoye
Volga-Okskoye
Vologodskoye
Moskovskoye
Priokskoye
Chernozemnoye
PMES
MES Volga
Nizhne-Volzhskoye
Sredne-Volzhskoye
Samarskoye
Nizhegorodskoye
PMES
MES Volga
Nizhne-Volzhskoye
Sredne-Volzhskoye
Samarskoye
Nizhegorodskoye
PMES
MES South
Kaspiiskoye
Kubanskoye
Rostovskoye
Stavropolskoye
Sochinskoye
PMES
MES South
Kaspiiskoye
Kubanskoye
Rostovskoye
Stavropolskoye
Sochinskoye
PMES
MES Ural
Permskoye
Sverdlovskoye
Yuzhno-Uralskoye
Orenburgskoye
PMES
MES Ural
Permskoye
Sverdlovskoye
Yuzhno-Uralskoye
Orenburgskoye
PMES
MES Western Siberia
Vostochnoye
Tsentralnoye
Yuzhnoye
Yamal-Nenetskoye
PMES
MES Western Siberia
Vostochnoye
Tsentralnoye
Yuzhnoye
Yamal-Nenetskoye
PMES
MES Siberia
Zabaikalskoye
Zapadno-Sibirskoye
Krasnoyarskoye
Kuzbasskoye
Omskoye
Tomskoye
Khakasskoye
PMES
MES Siberia
Zabaikalskoye
Zapadno-Sibirskoye
Krasnoyarskoye
Kuzbasskoye
Omskoye
Tomskoye
Khakasskoye
PMES
MES East
Amurskoye
Primorskoye
Khabarovskoye
PMES
MES East
Amurskoye
Primorskoye
Khabarovskoye
Geography and Scope of Activities
Russian Federation
Federal Grid Company operates in 77 Russian regions. The territory in which the Company’s facilities are located is divided into zones of responsibility for corporate branches – backbone electric grids (MES), and their local enterprises (PMES). Underpopulated territories with no large customers – such as Chukotka, Kamchatka, Magadan Oblast, Sakhalin, Nenets Autonomous Okrug and Altai Republic – are not integrated into UNEG because they do not have economic conditions necessary for laying electricity transmission lines and establishing large substations.
The main consumers of the Federal Grid’s services are:G4-12
- The main consumers of the Federal Grid’s services are:
- territorial grid organisations (TGC);
- power supply organisations (PSO);
- large enterprises – electricity consumers;
- electricity exporters.
Length of power transmission lines G4-EU4
- As at 31 December 2015, Federal Grid Company owned 134,534.859 km of overhead transmission lines (OHLs) (in 2014 – 134,525.031 km)
- As at 31 December 2015, Federal Grid Company owned 396.210 km of cable transmission lines (cable lines) (in 2014 – 368.621 km)
- As at 31 December 2015, Federal Grid Company owned 943.052 km of aerial cable lines (in 2014 – 775.307 km)
- As at 31 December 2015, length of power transmission lines leased by Federal Grid Company was 3,182.660 km (in 2014 – 3,125.653 km)
2012–2015 contracts for electricity transmission
services via UNEG, pcs G4-EU3
International Cooperation
As of the end of 2015, electricity supply to the bordering countries via UNEG was
Federal Grid Company facilitates the transit of electric power over Russia’s customs border and operates as a technical contactor under commercial contracts of importers and exporters on the Wholesale Electricity and Capacity Market (WECM).
Federal Grid Company and economic entities of Georgia, Azerbaijan, Kazakhstan, the Baltic countries and the Republic of Belarus. The Company also signed an Inter-system Agreement with Finland. It also signed agreements on technical support of parallel operations with Ukraine, the Republic of Belarus, and Mongolia.
Being a management organisation of UNEG and crossborder electricity transmission lines (CBETL) of all voltage classes, Federal Grid Company:
- coordinates commercial contracts for the import/export of electricity and provides their engineering support;
- arranges and implements commercial metering of electricity transmitted along CBETL;
- measures actual volumes of electricity that has been transmitted across the State border, and arranges for their customs clearance (declaration).
In order to measure the volume of electricity transmitted through each CBETL, Federal Grid Company and foreign counterparts signed agreements concerning the metering of cross flows via a particular CBETL. Under these agreements, the Company and electric power systems of 11 countries (Azerbaijan, Belarus, Georgia, Kazakhstan, China, Latvia, Lithuania, Mongolia, Ukraine, Finland and Estonia) exchange commercial metering data. G4-6 G4-8
Federal Grid Company continually modifies and improves its systems in relation to those of foreign power systems on issues pertaining to the harmonisation of legislation / regulations within the global electricity industry, as well as to form and synchronise the electricity and capacity markets in accordance with intergovernmental initiatives. This work is done with CIS Electric Power Council (CIS EPC) and its commissions, including the Commission for Operating and Engineering Coordination of Collective Operation of CIS and Baltics Energy Systems (COTC), BRELL Power Systems Committee, task forces in the CIS EPC Executive Committee, and Fingrid (Finland). G4-DMA
Market Positions
Federal Grid Company ensures electricity transmission via backbone grids and provides services for technological connection to its grids.
Goods and services markets that belong to natural monopoly mostly depend on the overall economic environment. Primarily domestic consumption and electricity export supplies affect the Russian market of electricity transmission services. According to the System Operator of UES1, in 2015 electricity consumption across the unified energy system (UES) of Russia reduced by 0.55% compared to 2014, to 1,008.3 billion kWh. Export to the neighbouring countries increased by 25% but it accounts for a small share in electricity consumption in UES of Russia (less than 2%).
Electricity consumption in Russia in 2011–2015, bn kWh
Electricity consumption in UES of Russia | 2011 | 2012 | 2013 | 2014 | 2015 plan | 2015 actual |
|---|---|---|---|---|---|---|
| 1,000.7 | 1 016,5 | 1,009.8 | 1,013.9 | 1,016.3 | 1,008.3 |
2015 Federal Grid’s Largest Customers in Terms of Revenue from Electricity
Transmission Services, %
Business Model
The business model of Federal Grid Company is aimed at ensuring sustainable development of the Company in the long term and creating values for all stakeholders through consistent implementation of our mission
Resources
(figures are given as of 31 December 2014)
- UNEG electric
grid facilities
138.8 thousand km
of transmission lines
924
substations
- Patents, Licenses, software
- R&D
RUB 3.3 billion
of intangible assets
RUB 0.4 billion
for R&D financing
- Employees’ experience, skills and expertise
94% of employees
with higher or secondary vocational education
24.5 thousand
of employees
- Water and energy recourses
1.16 million m3
of water consumption
968.7 million kWh
of electricity for substation needs
MISSION OF FEDERAL GRID COMPANY
To ensure reliable operation and development of UNEG that will be adequate to economic growth, and demonstrate high economic efficiency and cost minimisation
STRATEGIC GOALS AND OBJECTIVES
- Increase return on equity
- Reduce operating and investment costs
- Maintain financial sustainability
- Develop UNEG infrastructure
- Ensure reliability and quality of electricity supply to customers
- Consolidate all facilities of UNEG electric grids
- Ensure quality customer service
- Develop research and innovation capacity
- Develop and implement new technologies
- Substitute imports in order to support innovative development of the Russian energy sector
- Develop and train personnel
- Provide social support
- Establish a talent pool for a ‘smart energy’ sector
- Engage with higher education institutions
- Ensure environmentalisation and improve energy efficiency of the electric grid operations
- Reduce air emissions of hazardous substances
- Reduce water consumption
VALUE CREATION FOR STAKEHOLDERS
RUB 847 millionof dividends for 2014 |
33%economic value added (EVA) |
RUB 30.6 billionof interest on debt obligations |
RUB 23.5 billionof tax payments |
1,115 kmof transmission lines
|
7,58 thousand MWof transformer capacity commissioned |
RUB 484 millionallocated for R&D Programme |
30 newintellectual property items registered |
23,899jobs |
More then 15 000employees were trained during the year |
RUB 248 millionof environmental costs and investments |
10,4%Reduction in water consumption |
11,7%Waste reduction |
CORE BUSINESS PROCESSES
ELECTRICITY TRANSMISSION
Services of electricity transmission via UNEG are monopoly operations regulated by the State
TECHNOLOGICAL CONNECTION
A service package to connect power receivers of consumers, as well as generating and transmission facilities to Federal Grid’s electric grids
CONSTRUCTION AND RECONSTRUCTION
Implementation of projects on constructing new and reconstructing the existing facilities of electric grid infrastructure to improve the reliability of UNEG
AUXILIARY PROCESSES
Maintenance and Repairs
A package of operations to maintain operational capability and good condition of equipment
Procurement
A set of measures aimed at meeting the Company’s needs in goods and services
Energy Saving and Energy Efficiency
Measures to reduce the volume of consumed energy resources while retaining their beneficial effect
HR Policy
A system of employee engagement that aims at creating conditions for effective development and use of human resources
Industrial Safety
Prevention of accidents at UNEG facilities and readiness to localise and liquidate the fallout of accidents
Social Responsibility
Meeting of voluntary commitments toward stakeholders in order to ensure the Company’s sustainable development
Environment
Minimisation of negative environmental impact when providing electricity transmission services
Federal Grid Company at the Wholesale Electricity (Capacity) Market
Subject to the statutory procedure of the Russian Federation, Federal Grid Company buys electricity at the wholesale electricity and capacity market (WECM) in order to compensate actual losses in UNEG. The above activity is governed by the following legal acts and regulations:
- Federal Law “On Electric Energy” No. 35-FL dated 26 March 26 2003
- Rules for non-discriminatory access to electricity transmission services and provision thereof approved by the RF Government Resolution No. 861 dated 27 December 2004
- Rules for the wholesale electricity and capacity market approved by the RF Government Resolution No. 1172 dated 27 December 2010
- Agreement for joining the trade system of the wholesale market and wholesale market regulations that are annexes to the above Agreement
Since 01 July 2015, amendments to the Wholesale Market Rules has come into effect pursuant to which Federal Grid Company buys capacity in the amount calculated based on actual peak consumption.
In 2015, the cost of electricity and capacity bought by Federal Grid to compensate losses amounted RUB14.332 billion, net of VAT, including at WECM RUB6.452 billion for electricity and RUB7.845 billion for capacity. In addition, in accordance with the Federal Law “On Electric Energy” No. 35-FZ dated 26 March 2003, Federal Grid Company buys electricity to compensate actual losses in distribution grids of Krasnodar Krai that are on the Company’s books. The cost of electricity bought by Federal Grid to compensate losses in distribution grids was RUB0.035 billion, net of VAT.
Actual electricity losses in the Company’s grids in 2015 amounted to 23,478 million kWh. The relative level of 2015 losses was 4.47% of electricity supplied
Operating Performance Results in 2011–2015, mln kWh G4-9
| 2011 | 2012 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| Electricity supply via UNEG to consumers | 509,287 | 517,131 | 519,983 | 515,250 | 525,769 |
| Electricity losses within UNEG | 22,553 | 21,946 | 22,262 | 21 261 | 23,478 |
by the grid. As compared to 2014, it increased by 0.34%, or 2,217 million kWh as electricity supply increased by 2.04%. The increase of electricity losses was caused by changes in the operational mode of UNEG in 2015, as well as changes in the load of power stations, redistribution of customers’ load. G4-EU11
Industry Organisations and Commissions
Government Commission for the Electric Power Industry Development
The Commission is a coordinating body established to ensure coordinated actions of the interested federal executive authorities and executive authorities of the RF constituent entities on matters of prospective development of the electric power industry in the Russian Federation.
The Chairman of the Federal Grid Management Board, Andrey Murov, is a member of the Commission.
Details about the Commission and its membership are available on the website of the RF Government http://government.ru/department/144/about/ and http://government.ru/info/21190
CIGRE (Russian National Committee of CIGRE)
International Council on Large Electric Systems – CIGRE (Conseil International des Grands Réseaux Électriques – CIGRE) is the largest international organisation in the field of electric power. Founded in 1921, now it joins experts and scientists form 90 countries. Its sphere of interests covers all aspects of power systems operation: from economic issues to scientific and technological achievements. CIGRE’s organisational model is based on creation of National Committees that bring together industry players and institutions of a certain country. The CIGRE’s Central Office is in Paris (France).
The Russian National Committee (RNC CIGRE) is one of the leaders on CIGRE, both in terms of the number of members and because of a high level of energy research. RNC ensures the rational application of the world experience of the electricity industry development in our country. It assists in technical, economical, political, sociological research in areas related to power industry.
The RNC CIGRE has 59 collective and 496 individual members, including Federal Grid Company, JSC SO UES, PJSC Rosseti, Moscow Power Institute and others.
On 2 September 2015, the Chairman of the Federal Grid Management Board, Andrey Murov, was elected a Chairman of the RNC CIGRE.
Further details about the CIGRE’s activities are available on the website http://www.cigre.ru/
Representatives of Federal Grid Company are engaged in the work of:
- expert workshop “Import Substitution in Fuel and Energy Complex” of the Energy Committee of the State Duma of the Russian Federation
- coordinating research council on issues of the implementation of a sub-programme “Development of the production of composite materials and products therefrom” at the RF Ministry of Industry and Trade;
- All-Russian public organisation ”Russian Engineering Union”;
- Research division for infrastructure development of the Academy of Military Science.
Federal Grid Company interacts with public organisations (Russian Union of Industrialists and Entrepreneurs, OPORA ROSSII, Russian Engineering Union, TRAVEK Association), research institutions, etc., on the development of technologies of manufacturing electrical equipment.
Federal Grid Company, represented by the Deputy Chairman of the Managing Board, Alexey Molsky, is a member of the Supervisory Board, which is a collective governing body of the Market Council, a non-profit partnership. In accordance with the laws and regulations of the Russian Federation, Articles of Association of the Market Council and Regulations on the Supervisory Board of the Market Council, a member of the Supervisory Board is authorised to veto amendments in the Trade System Accession Agreement in which Federal Grid Company is a statutory party.
Besides, the Deputy Chairman of the Management Board, Alexey Molsky, represents Federal Grid Company in the Advisory Committee on Electric Power at the Board of the Eurasian Economic Commission. Three Federal Grid’s officers from the Customers and Market Engagement Department and Laws & Regulations Directorate represent the Company in the Subcommittee for the Common Electricity Market of the Eurasian Economic Union. They are involved in drafting and approval of the Concept of the Common Electricity Market of the Eurasian Economic Union. G4-16