The Year An Interview with Chairman Electrification in Pictures: of Completed Ins of the State Duma’s Committee some facts from the history and Expected Outs for Energy Ivan GRACHEV of energy posters 14 20 32 Magazine about Russia’s Power Industry ENERGY WITHOUT BORDERS № 6 (31) December 2014 – January 2015 Happy Payments! The industry is anticipating tougher measures against non- payers in the retail electricity market IN RUSSIAN AND ENGLISH peretok.ru ENERGETICS IN RUSSIA AND IN THE WORLD peretok.ru NETWORKED! Dear readers, he end of the year is the time to sum up results. One of the un- solved problems of the year of 2014 is the outstanding debt for power supply. As of November 1, the amount owed to guaranteed supply companies in Russia reached 165 billion rubles. At the same time, the guaranteed supply companies have to pay on the wholesale market just in time and are forced to arrange loans to fulfill their obligations. Consumers’ poor payment discipline caus- es payment problems along the entire chain, undermining power companies’ financial stability, while the situation with non-pay- ments adversely affects the industry as a whole. Today, power supply companies do everything possible to get their money from consumers, including sending notices, cutting off electricity supply, filing lawsuits, and, jointly with court bai- liffs, prohibiting debtors from travelling abroad. It is clear that power supply companies will not be able to address this problem independently; this will require a systematic approach at the highest Tlevel. The State Duma is now developing a whole series of amendments to legislation aimed at tightening payment discipline on the retail market. This gives us hope that in 2015, the bulk of the debts will be repaid. These and many other issues are discussed by Ivan GraChev, Chairman of the State Duma’s Committee for energy, in his interview with energy Without Borders. The cover story of this year’s last energy Without Borders issue is called “New Year with No Debts.” A campaign of the same name aimed at tightening payment discipline is now being run by Moscow Power Supply Company. It is described in detail in this issue. I wish you a rewarding reading experience and look forward to your feedback. Please write to our editorial e-mail address: [email protected]. Congratulations on the energy Professional’s Day and many best wishes for a happy New Year and a Merry Christmas! Sincerely yours, editor-in-Chief anton NaZarOv CONTENTS MADE IN RUSSIA 16 Gas-Fired. Sought-After. Ours. A new plant that manufactures, sells and maintains 4 NEWS the sought-after 77 MW 6FA gas turbines has opened in Rybinsk, marking another step in an energy strategy COVER STORY which among other things aims at meeting the energy 8 sector’s equipment needs mostly with Russian-made New products. INTERNATIONAL COOPERATION Year with 18 Between East and West Inter RAO Group has unveiled a global strategy that No Debts aims to improve the performance of the company’s existing assets and develop new power equipment As of November 1, Russian electricity consumers’ total supply projects. Inter RAO is not planning any acqui- debt to guaranteed supply companies exceeded 165 sitions within the next two years, but says new joint billion rubles. Power supply companies do everything projects abroad are possible in case they are pro- possible to get their money, including cutting off elec- posed. tricity supply, imposing fines, or filing complaints with courts asking to seize the troublemakers’ property or prohibit them from travelling abroad. However, the INTERVIEW trend is that the companies’ accounts receivable will 20 continue to grow. And the issue needs to be addressed in the near future and at the highest level. EXPERT CLUB 12 Groundwork for the Future The year of 2014 has been rich in events for the power industry: the approval of the district heating reform, the controversial outcome of the competitive capacity selection, the launches under CDAs, etc. We asked ener- gy company leaders and industry experts to name the key events of the year from their point of view. GENERATION 14 Expected Ins and Outs Yet another year of mandatory investment programs for generation companies is coming to an end. New power plants have been duly put in operation under capacity de- livery agreements during 2014, with the amount of new capacity in Russia increasing. However, the new plants also bring a growing problem of a surplus of capacity that is being paid for, putting pressure on the market. Failure to decommission old facilities resulted in more than 10 GW of capacity being added to the list of plants that have “I don’t think a revolution is the not been selected but are still being paid for, while the best option, but if something decommissioning system is not working well so far. is objectively wrong in the industry, it needs to be changed.” It has been an eventful year for the Russian energy sector. Yet another competitive capacity selection, the district heating reform, the complex international environment – all this can significantly reshape the industry landscape in the future. In an interview with Energy Without Borders, Chairman of the State Duma’s Committee for Energy Ivan GRACHEV speaks about his view on the nation’s energy sector today and identifies short-time legislative priorities. 2 Founder and publisher: JSC Inter RAO Issue No.6 (31) December 2014 – January 2015 The magazine is registered with the Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications (ROSKOMNADZOR). State registration certicate PI No. FS77–54414 dated June 10, 2013. Editorial address: 27 Bolshaya Pirogovskaya Street, Building 2, 24 REGION 32 NB Moscow 119435, Russian Federation The Mother Lode Electrification tel. +7 (495) 664-88-40, fax +7 (495) 664-88-41, of Transnistria’s Power In Pictures [email protected]. Industry Russian energy professionals For advertising inquiries, please call: Transnistria is still an unrecog- celebrate their special day on +7 (495) 664-88-40 (21-24). nized state. However, it doesn’t December 22, the day when the prevent the country from exporting legendary national electrifica- Editor-in-Chief: Anton NAZAROV power. The republic’s Moldovskaya tion plan, GOELRO, was adopt- Executive Secretary: Alexander KLENIN TPP, which has recently celebrated ed. The electrification of the its 50th anniversary, supplies the country was also the beginning Editorial Board of JSC Inter RAO: power needs of both Moldova and of the Soviet energy poster, Alexander BORIS, Member of the Management its neighbors. which illustrated the most Board – Chair of the Editorial Board; interesting chapters of the Anton NAZAROV, Director of Public Relations, ENERGYSAVING TECHNOLOGIES energy industry’s history. Head of the Information Policy Department – 26 Open for Metering Deputy Chair of the Editorial Board; The Russian wholesale and retail Pavel OKLEY, Member of the Management Board – Head of the Operations Unit; power markets use data provid- Sergey PUCHKA, Head of the Human Resources ed by hundreds of thousands of and Organizational Development Unit; automated electricity meters and Yury SHAROV, Member of the Management millions of local metering devices. Board – Head of the Engineering Unit. Regulated metering is the key ele- ment of the market-driven develop- ment model for the Russian elec- tricity market which has currently reached a new stage of technologi- 10 Nizhnyaya Syromyatnicheskaya Street, Building 9, cal development. Moscow 105120, tel. +7 (495) 640-08-38, +7 (495) 640-08-39, www.medialine-pressa.ru, TECHNOLOGIES е-mail: [email protected]. 28 A Kilowatt Saved is General Manager: Larisa RUDAKOVA a Kilowatt Earned Project Manager: Tatyana POSTNIKOVA The role of technologies in the ener- Executive Editor: Irina DEMINA gy sector is more important than in Chief Designer: Mariya TYRYLGINA any other industry. If one does not Designers: Alexey SUKONKIN, Irina SHILINA Color Corrector: Andrey KLOCHKOV skimp on introducing recent techno- Proofreaders: Larisa NIKOLINA, logical advances, the investment will PHOTO EDITOR’S CHOICE Galina BONDARENKO, not only pay back, but also provide a 34 The Energy Industry Alina BABICH permanent source of savings. One of in the Year Just Photo: Dmitrii CHISTOPRUDOV, Press Service of such technologies is the automated Passed Inter RAO Group companies, SHUTTERSTOCK, RIA electricity metering system. What will the year of 2014 be Novosti, Lori photo bank best remembered for? Energy For advertising inquiries, please call: 30 A DISSENTING VOICE Without Borders presents a +7 (495) 640-08-38/39 ext. 150; Change in Priorities photo report of key 2014 events Mobile: +7 (962) 924-38-21 Transition from extensive devel- for industry players. Advertising Sales Manager Alla PEREVEZENTSEVA opment, large-scale construction [email protected], projects and expensive purchases to EVENT CALENDAR [email protected] improving efficiency through the use 36 Major energy industry confer- Proofs approved 24.12.2014. of internal resources – is this the key ences, forums and exhibitions in Printed at TvoLimedia print shop. to overcoming the industry crisis? December 2014 – January 2015. ENERGY WITHOUT BORDERS | № 6 31 DECEMBER 2014 JANUARY 2015 3 NEWS % – an increase MW – the average daily capacity of in Deutsche a future oating power generation Bank’s price unit; its design has been put out to target on Inter tender by the Russian Ministry of 20 RAO shares. 1 Industry and Trade. Russian-Finnish Power Flow FGC UES, Inter RAO and Fingrid entered sia–Finland, which takes into account the into a number of agreements in Helsinki on specifics of the two-way trade. technological and organizational aspects The previous version of the agreement, of the two-way trade in electricity between which had been in force since 2007, had Russia and Finland.