The Strategy of PJSC Inter RAO for the Period until 2020 was approved by a resolution of the Board of Directors dated March 13, 2014. Minutes No. 110 dated March 17, 2014. In December 2014, the Inter RAO Group Strategy for the Period until 2020 was submitted to the Government Commission for the Development of the Electric Power Industry for consideration as a Long-Term Development Program and approved without changes.Minutes No. 18 dated December 27, 2014. This decision made it possible to unify the Group’s strategic planning procedures. The Strategy/Long-Term Development Program includes a target vision, mission, strategic goals, a list of priority areas for development, and the consolidated indicators of the Inter RAO Group for the period until 2020.
In order to monitor the implementation of the Strategy/Long-Term Development Program, each year the Company prepares Strategic Development Priorities that are approved by the Board of Directors and consist of a set of top-level priorities, including quantitative indicators and policy measures. The Strategic Development Priorities also make it possible to establish a correlation between incentives for the Chairman of the Management Board and members of the Management Board and the strategic management system (in accordance with the Regulation on Financial Incentives for the Chairman of the Management Board and Members of the PJSC Inter RAO Management Board).Minutes No. 103 dated November 11, 2013 with amendments and additions dated December 9, 2014 (Minutes No. 129 dated December 12, 2014) and December 29, 2016 (Minutes No. 189 dated December 30, 2016).
The Board of Directors assesses the extent to which the Strategy/Long-Term Development Program is implemented for a given reporting period through an audit of the Report on the Implementation of the Company’s Strategic Development Priorities.
Long-term priorities by segment
Electric Power Generation and Thermal Power Business
- drafting and promoting proposals to develop a model for the functioning of the wholesale electricity and capacity market as well as the thermal power market, which aims to improve the operating efficiency of generating assets
- implementing investment projects for the construction/modernization of thermal power assets
- decommissioning inefficient generating capacity
- implementing integrated programs to improve the operational efficiency of the Inter RAO Group’s production assets
- implementing long-term integrated programs for the retooling and reconstruction of the Inter RAO Group’s assets
- studying options for the disposal of existing assets on foreign markets should it be determined that retaining them within the Inter RAO Group is not economically viable or in the event of asset swaps
- implementing projects on foreign markets as an EPC (M) contractor
- promoting proposals for the regulatory framework on the target model of retail markets
- securing the status of a Guaranteed Supplier (GS) in the event of regular/extraordinary tenders and/or the withdrawal of the status of existing GSs
- acquiring economically appealing PSCs (guaranteed suppliers and independent PSCs) that have the greatest synergy with Inter RAO facilities and integrating them into the Group
Foreign Trade Operations
- promoting proposals for the regulatory framework to optimize the electric power modes of power systems and improve trade regimes
- involvement in creating a regulatory framework within the Common Economic Space (CES), particularly in the creation of a common electricity market for the Eurasian Economic Union
Modernization, Construction, and R&D
- developing and introducing domestic technologies for the design, construction, and modernization of energy assets
- developing an in-house scientific base of highly skilled professionals for all necessary areas of the electric power industry
- entering the gas turbine market
- participating in the implementation of strategic state projects, including the Kaliningrad Region Electric Power Industry Development Program, in order to ensure the Kaliningrad Region has the ability to function independently