Chapter 2
2.4. Investments
Events of 2015
- Financing of the investment programme was 104,69 billion rubles (83,66 billion rubles accounted for the investment projects of PJSC RusHydro and of 21.03 billion rubles for projects of RAO Energy Systems of the East Group).
- New hydro capacity installed – 178,88 MW, heat capacity – 194,295 Gcal/h, grid – 891,603 km, grids – 891,603 km,
transformer capacity – MVA 296,8.
2.4.1. Investment policy principles
The Company’s investment activity is regulated by the Regulations on the Investment Management Process in the Form of Capital Investments.
Approval of the Company’s Investment Programme is the responsibility of the Company’s Board of Directors. The investment programmes, before being approved by PJSC RusHydro’s Board of Directors, are agreed upon with executive authorities and approved by the Russian Ministry of Energy.
2.4.2. 2015 Investment programme
The Company’s 2016-2018 investment programme was approved by Order No 956 of the Russian Ministry of Energy as of December 44, 2015.
In the composition of the Business plan of PJSC RusHydro for 2016-2020 (minutes of the Board of Directors from 25.12.2015 No. 229) approved the Business plan of PJSC RusHydro for 2016, including investment programme for 2016, and noted the Business plan of PJSC RusHydro for years 2017-2020, including investment programme for 2017-2020.
The adjusted Business plan of PJSC RusHydro for 2015 approved by the decision of the Board of Directors (minutes dated 24.12.2015 No. 230). The total investment for 2015 amounted to 83 billion rubles.
CAPEX dynamics, RUB billion
Structure of funding sources used in 2015
The main areas of investmentsof
PJSC RusHydro in 2015, RUB billion
Main areas of investment, RAO Energy Systems of the East Group in 2015, RUB billion
2.4.3. Financing of the investment programme in 2015, RUB billion
Key Investment Projects (under construction)
| Object | Design Capacity, MW | Start of Construction | Completion of Construction | Capacity Commissioning 2015, MW | Capacity Commissioning 2016, MW (plan) |
|---|---|---|---|---|---|
| PRIORITY PROJECTS IN THE FAR EAST | |||||
The Blagoveschenskaya CHP (2nd stage). The aim of construction is to liquidate the existing capacity deficit and meet future heat energy consumption growth, improve energy supply reliability as well as to meet the irregular part of the load schedules of UES of the East. | 120 | 2011 | 2015 | 120 | - |
The Sakhalinskaya TPP-2 (1st stage). The new TPP will replace the decommissioned capacity of the Sakhalinskaya TPP-2, as well as increase the efficiency of Sakhalin energy system performance. | 120 | 2011 | 2017 | - | - |
The CHP in Sovetskaya Gavan. The CHP is constructed to substitute the decommissioned capacity of the Mayskaya TPP and ensure meeting the growing energy needs of the special economic zone in the Sovetskaya Gavan port. | 120 | 2011 | 2017 | - | - |
The Yakutskaya TPP-2 (1st stage). The project is realized to replace the decommissioned capacity of the Yakutskaya TPP and meet consumption growth for energy and to enhance energy supply reliability | 193.48 | 2011 | 2016 | - | 193.48 |
| TOTAL | 120 | 193.48 | |||
The Gotsatlinskaya HPP. The aim of the project is to supply electricity and capacity to consumers of the deficient UES of the North Caucasus, which will have a beneficial impact on remedying the socio-political situation and improving the social status of the Republic of Dagestan. | 100 | 2007 | 2016 | 100 | - |
The Zelenchukskaya HPP-PSPP. The aim of the project is to enhance the reliability of the energy supply to the North Caucasus energy system and balance the daily schedule of the Kuban River, increase the adjustment capacity in the power system. | 140 | 2009 | 2016 | - | 140 |
The Nizhne-Bureyskaya HPP. This HHP will be a compensating reservoir of the Bureyskaya HPP, levelling daily water fluctuations in the river resulting from the work of the hydropower plant. This will remove the restrictions on the regimes of operation of the Bureyskaya HPP and prevent winter floods in several villages located downstream. | 320 | 2010 | 2017 | - | 320 |
The Zagorskaya PSPP-2. The second stage of the Zagorskaya PSPP is built to partially solve the problem of maneuverable regulation power deficit in the Central Region of Russia. | 840 | 2006 | 2019 | - | - |
| TOTAL | 100 | 460 | |||
Financing of the investment programme in 2015, RUB billion
Capacity commissioning PJSC RusHydro
Capacity commissioning RAO Energy Systems of the East Group
2.4.4. Investment plans
Investment plans for 2016
| PJSC RusHydro* | RAO Energy Systems of the East Group | |
|---|---|---|
| The volume of investments, RUB million | 99,774.7 | 33,884.59 |
Input power: | ||
| Generation, MW | 746.08 | 143.62 |
| Thermal energy, Gcal/h | 469.6 | 449.81 |
| Grids, km | 947.41 | |
| Transformer capacity, MVA | 317.51 |
2.4.4.1. Optimization and improvement of investment efficiency
PJSC RusHydro is going to update the Investment Programme29 of RusHydro Group for 2016-2019. The total sum as per the updated Investment Programme of RusHydro Group for 2016-2019 shall amount to RUB 352.7 billion (VAT included), i.e. RUB 31.8 billion less (-8%) than the planed amount (RUB 384.5 billion).
Optimisation parameters of the Investment Programme of RusHydro Group for 2016-2019 (RUB bln, VAT included)
| 2016 appr | 2016 upd | mod | 2017 appr | 2017 upd | mod | 2018 appr | 2018 upd | mod | 2019 appr | 2019 upd | mod | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RusHydro re-equipment and reconstruction | 35 | 29.2 | -17 % | 44 | 28.9 | -34 % | 46 | 28.8 | -37 % | 41.8 | 29.5 | -29 % |
| New thermal power facilities in the Far Eastern Federal District* | 35.2 | 31.3 | -11 % | 27.2 | 34.6 | 27 % | - | - | - | - | - | - |
| New hydroelectric power facilities | 38.2 | 30.8 | -19 % | 21.3 | 32 | 50 % | 10 | 15.9 | 58 % | 0.8 | 7.7 | 904 % |
| RAO Energy Systems of the East Group** | 25.3 | 21.5 | -15 % | 19.7 | 25.1 | 27 % | 20.1 | 20.8 | 3 % | 19.9 | 16.7 | -16 % |
| TOTAL | 133.8 | 112.9 | -16 % | 112.1 | 120.4 | 7 % | 76.2 | 65.5 | -14 % | 62.4 | 53.9 | -14 % |
(Planned settings are reflected on the basis of the investment programmes approved in the business plans of Group companies RusHydro, approved in the established order, including taking into account the parameters of the investment programmes of subjects of electric power industry, approved by the Ministry of energy in accordance with the norms of the decree of the Government of the Russian Federation of 01.12.2009 No. 977, adjustment parameters are disclosed in accordance with the draft of consolidated investment programme of RusHydro Group for 2016 (adjustment) and 2017-2019, taken note of by the Board of Directors of PJSC RusHydro (minutes dated 08.04.2016 No. 235))
In the framework of actualisation and optimisation of the Investment programme was taken into account:
- the reduction of annual volume of financing of projects of technical re-equipment and reconstruction of HPP PJSC RusHydro through the smoothing of the schedule of financing of projects of the Programme of complex modernisation of hydroelectric power stations and reducing their unit cost, including by raising the efficiency of the procurement procedures up to the level of funding is not more than 30 billion rubles per year (inclusive of VAT) with preservation of the quality of works and initially target parameters of reliability and safety of HPP.
- funding for small HPPs in the North Caucasus Federal district is reduced to the extent necessary to complete the development of design documentation in 2016. The construction Zaragizhskaya SHPP is planned to be completed in 2016, with full entry capacity of 30.6 MW.
The Investment Programme of RusHydro Group for 2016-2019 envisages the completion of previously facility building project and the commissioning of new electric power sites of 2.67 GW and thermal power sites of 1,461 Gcal/h.
The key investment projects of the company in the North Caucasus are:
- Zelenchukskaya HPP-PSPP (140 MW in generator mode) in the Karachay-Cherkess Republic;
- Zaramagskaya HPP-1 (342 MW) in the Republic of North Ossetia-Alania.
The key investment projects of RusHydro Group in the Far East are:
- the third hydroelectric unit of Ust-Srednekanskaya HEPP with a capacity of 142.5 MW (Magadan region);
- Nizhne-Bureyskaya HPP (320 MW) in Amur region;
- Priority thermal power facilities constructed in the Far East in accordance with the Decree of President of Russia (Yakutskaya TPP -2 (1st stage), CHP in Sovetskaya Gavan, Sakhalinskaya TPP-2 (1st stage), the Blagoveschenskaya CHP (2nd stage).), and auxilary off-site facilities such as access motorways/railroads, infrastructure of electric and thermal power output, water-supply and -disposal systems, slag-and ash-disposal systems etc .;
- Vostochnaya CHP (139.5 MW/421 Gcal/h) in Vladivostok.
In 2016-2019 RusHydro Group also plans to commission 231.5 MW of facilities in terms of re-equipment and reconstruction projects (e.g. through the implementation of the Programme for the comprehensive modernisation of HPPs of PJSC RusHydro), 1,166.8 km of overhead transmission lines, and 46.73 km of heat-supply systems, in order to modernise the energy infrastructure in the Far East.
RUB billion
investment program
of RusHydro Group’s
2.4.5. Comprehensive Modernisation Programme of HPPs
2.4.5.1. Comprehensive Modernisation Programme of HPPs
Since 2012 PJSC RusHydro has been implementing the Programme of Complex Modernisation (PCM) – a project on the renovation of production facilities and equipment in the power industry, which is unique by its scale. According to the PCM, it is planned to replace more than a half of HPP capital equipment until 2025.
The programme is being implemented using innovative and energy-efficient solutions (the use of fibre-optical technologies, optical transformers, the deposition of nanostructured materials, the implementation of microprocessor-based control systems, vibration control systems, etc.).
2.4.5.2. Results of Programme implementation and Agenda 2016
Main results as of 2015:
- Kama HPP finished the scheduled modernisation of hydroelectric units.
- Three Volga HPP hydroelectric units were brought into operation after modernisation.
- Turbines and the mechanical parts of generators were replaced at three Zhigulyovskaya HPP hydroelectric units.
- The reconstruction of five Cheboksary HPP hydroelectric units was initiated, and other two hydroelectric units had already been finished.
- Three Saratov HPP hydroelectric units were brought into operation after modernisation.
- Novosibirsk HPP hydroelectric unit 5 was modernized.
Implementation of the Programme of complex modernisation of HPP
| The PCM plan (2012-2025), ed. | The fact PCM (2012-2015), ed. | % complete from the PCM plan (2012-2025) | |
|---|---|---|---|
| Turbine | 201 | 60 | 29.9 |
| Generators | 187 | 46 | 24.6 |
| Transformers | 183 | 42 | 23 |
| High-voltage circuit breakers | 398 | 111 | 27.9 |
| Hydro facilities | 230 | 175 | 76.1 |
| Equipment wiring | ≈ 10200 | 3792 | 37.2 |
| Accessories | > 4200 | 1479 | 35.3 |
The increase in installed capacity, MW
| Object | 2015 (fact) | 2016 (forecast)* |
|---|---|---|
| The Voljskaya HPP | 10.5 | 10.5 |
| Zhigulevskaya HPP | 21 | 31.5 |
| Kamskaya HPP | 6 | 3 |
| Kamskaya HPP | 13 | 6 |
| Novosibirskaya HPP | 5 | 5 |
| Total of PJSC RusHydro | 55.5 | 56 |