Energy conservation and efficiency

Energy Conservation and Efficiency Improvement Programs

The Inter RAO Group consistently continues to work on optimizing business processes to manage energy conservation and improve energy efficiency at all its major Russian and foreign generating assets. Projects to improve energy efficiency are highly innovative and based on the best world practices. The Company carries out its own research and development and also collaborates with Russian and foreign industry leaders.

The Energy Conservation and Energy Efficiency Improvement Program (ECEEIP), a targeted program that was established at the Group’s production assets and consolidated for the Company as a whole, is the main practical tool used to achieve energy conservation and energy efficiency improvement targets within the Energy Management System. The Commission on Energy Conservation and Energy Efficiency Improvement of the Company and its subsidiaries is involved in the process of establishing the program and reporting on its implementation. The ECEEIP is a medium-term program and has a five-year planning period based on the rolling planning principles. All ECEEIP indicators are compiled with a breakdown by production unit, power plant, and companies of the Group. The ECEEIP for 2018–2022 was approved at a meeting of the PJSC Inter RAO Management Board Minutes No. 739 dated March 1, 2017 .

The ECEEIP measures are divided into two sections: measures with a “direct” energy effect and measures with an “accompanying” energy effect. The measures with a “direct” energy effect include those developed specifically to generate an energy effect; its share in the total economic effect of such measures exceeds  80%. These measures should be commercially justified with a mandatory calculation of cost efficiency in accordance with the Methodology for Assessing the Cost Efficiency of Investment Projects with Capital Investments.

Strategic objectives to improve the efficiency of generating capacity:

• implement the main provisions of the energy strategy of the Russian Federation and the Energy Efficiency and Energy Development state program of the Russian Federation
• achieve the goals set forth in the Strategy of PJSC Inter RAO
• achieve the target indicators for energy conservation and improving energy efficiency envisaged by the Inter RAO Group’s Innovative Development Program
• ensure the sustainable use of energy resources through the implementation of energy conservation and energy efficiency improvement measures
• improve the energy efficiency indicators of energy-intensive production assets both individually and for the Group as a whole while minimizing operating and development costs
• establish and improve an integral and efficient system for managing energy conservation and improving energy efficiency (development of an energy management system)
• mitigate the negative environmental impact

Results of the fulfillment of the Inter RAO Group’s Energy Conservation and Efficiency Improvement Programs for 2018

1. The following key energy efficiency performance indicators (KEEPI) were achieved.
   • for heat and electricity generation activities (thermal power plants and boiler houses, excluding generation at hydroelectric power plants and wind farms):
   • fuel heat utilization factor (FHUF) – 49.49% (target – 48.48%, 2017 – 48.35%, standard – 49.22%). The indicator was met with a positive trend in relation to the previous year;
   • specific overconsumption of fuel equivalent – 1.935 g/kWh (target – 1.432 g/kWh, 2017 – 1.750 g/kWh). The indicator was not met;
   • for heat supply activities (heat networks):
   • total relative heat losses when transmitted through heat networks – 18.61% (target – 16.64%, 2017 – 17.05%). The indicator was not met;
   • specific electricity costs when transmitting thermal power through heat networks – 6.11 kWh/Gcal (target – 7.07 kWh/Gcal, 2017 – 6.51 kWh/Gcal, standard – 6.36 kWh/Gcal). The indicator was met with a positive trend in relation to the previous year.
2. The following target production indicators (TPI) were achieved.
   • for heat and electricity generation activities (thermal power plants and boiler houses):
   • specific consumption of fuel equivalent for electricity supply – 296.99 g/kWh (target – 299.26 g/kWh, 2017 – 303.14 g/kWh, standard – 298.72 g/kWh). The indicator was met with a positive trend in relation to the previous year;
   • specific consumption of fuel equivalent for heat supply – 144.36 kg/Gcal (target – 145.39 kg/Gcal, 2017 – 143.90 kg/Gcal, standard – 145.09 kg/Gcal). The indicator was met;
   • specific consumption of electricity for internal needs for electricity generation – 3.76% (target – 3.92%, 2017 – 3.86%, standard – 3.93%). The indicator was met with a positive trend in relation to the previous year;
   • specific consumption of electricity for internal heat production needs – 32.69 kWh/Gcal (target – 34.12 kWh/Gcal, 2017 – 33.12 kWh/Gcal, standard – 33.89 kWh/Gcal). The indicator was met with a positive trend in relation to the previous year;
   • for heat supply activities (heat networks):
   • relative process (standard) losses of thermal power during the transmission of thermal power through heat networks – 14.29% (target – 13.67%, 2017 – 13.65%). The indicator was not met;
   • relative excess losses of thermal power during the transmission of thermal power through heat networks – 4.32% (target – 2.96%, 2017 – 3.40%). The indicator was not met;
   • relative losses of coolant during the transmission of thermal power through heat networks – 2.37% (target – 2.41%, 2017 – 2.45%). The indicator was met with a positive trend in relation to the previous year;
   • share of heat supplied to consumers calculated using metering devices – 64.98% (target – 63.80%, 2017 – 63.86%). The indicator was met with a positive trend in relation to the previous year.
3. Energy resources saved from the commissioning of new capacity:
   • fuel equivalent – 1.164 billion tons of fuel equivalent
   • thermal power – 116,676 Gcal
   • electric power – 15.055 bln kWh
   • water – 4.742 bln cub. m
4. Taking into account the commissioning of new capacities, the implementation of the Program’s measures resulted in:
   • FHUF increasing by 1.40% abs.
   • specific fuel overburning decreasing by 0.33 g/kWh
   • specific fuel equivalent consumption for electric power decreasing by 9.99 g/kWh
   • specific fuel equivalent consumption for thermal power decreasing by 0.18 kg/Gcal
   • heat energy losses decreasing by 0.38% abs.
   • electricity costs when transmitting thermal power through heat networks decreasing by 0.01 kWh/Gcal
5. The economic effect from the implementation of the Program’s measures amounted to almost RUB 3.807 billion taking into account the commissioning of new capacities.
6. The costs of implementing the Program’s measures amounted to RUB 5.773 billion taking into account the commissioning of new capacities.

Use of energy conservation technologies

The Inter RAO Group includes power facilities that operate in a co-generation cycle. These power facilities Power facilities with co-generation include facilities with 100% heat-generating turbines, combined-cycle gas turbine units, and gas turbine units operating in a closed cycle that supply heat to consumers. have total installed electric power capacity of 6.9 GW, which makes up 24% of the total installed capacity of the Group’s Russian assets, and total installed thermal power capacity of 14,979 Gcal/h. The assets that are equipped with heat turbines (combined-cycle gas turbine units and gas turbine units) are located in the cities of Ufa, Tomsk, Omsk, Kaliningrad, St. Petersburg, and Sochi, among others. To enhance the efficiency and reliability of the equipment and reduce the environmental impact of production, the Company plans to continue work to modernize core equipment, service water supply systems, gas cleaning units, and electrical equipment in the future.

Use of renewable and secondary energy sources in Russia

LLC Bashkir Generation Company supports the use of alternative energy sources in economically and technically justified situations, in particular in remote or technologically isolated areas. This is consistent with the provisions of Federal Law of the Russian Federation No. 261-FZ dated November 23, 2009 “On Energy Conservation and Energy Efficiency Improvement and Amendments to Certain Legislative Acts of the Russian Federation.”

LLC Bashkir Generation Company uses renewable energy sources (RES) and secondary energy sources (SES) to produce energy for its own needs and for sale to the following outside consumers:

• hydroelectric power plants (the Pavlovskaya and Yumaguzinskaya HPPs)
• small and micro hydroelectric power plants (the Mechetlinskaya, Slakkaya, Avzyanskaya, Uzyanskaya, and Kaginskaya MHPPs)
• the wind power plant of the Tyupkilda wind farm

According to expert estimates, the use of renewable energy sources at LLC Bashkir Generation Company in 2018 prevented the emission of 837 tons of pollutants into the atmosphere and 362,200 tons of greenhouse gases (CO₂ equivalent).

Fuel consumption