PERFORMANCE OF THE POWER ENGINEERING DIVISION IN 2019 PERFORMANCE OF THE POWER ENGINEERING DIVISION IN 2019 PERFORMANCE OF THE POWER ENGINEERING DIVISION IN 2019 CHAPTER 9. DEVELOPING THE HUMAN CAPITAL 58 TABLE OF CONTENTS 9.1. Occupational safety and health 62 9.2. System for attracting highly qualified young professionals 68 9.3. Voluntary health insurance (VHI) 73 CHAPTER 1. MESSAGE FROM THE HEAD OF THE DIVISION 4 9.4. Health resort treatment for employees 74 9.5. Providing better living conditions for employees 74 CHAPTER 2. OVERVIEW OF THE POWER ENGINEERING DIVISION 8 9.6. Sports and cultural projects 75 2.1. General information 10 9.7. Private pension plans 75 2.2. Corporate governance system 17 9.8. Veterans’ movement 76 2.3. Quality management standards and systems 20 CHAPTER 10. DEVELOPING THE REGIONS OF OPERATION 78 CHAPTER 3. KEY RESULTS AND PERFORMANCE INDICATORS OF THE DIVISION 22 10.1. Key measures implemented in 2019 under agreements with regions 81 3.1. Key results 24 10.2. Communication with stakeholders 84 3.2. Operating results 25 3.3. Production plans 28 CHAPTER 11. SAFETY OF NUCLEAR TECHNOLOGIES AND NFC PRODUCTS 86 11.1. Policy and fundamental principles underlying safe NPP operation 88 CHAPTER 4. KEY EVENTS IN 2019 30 11.2. NPP safety monitoring 91 11.3. Improvement of NPP safety and resilience to extreme external impacts 92 CHAPTER 5. SUSTAINABLE DEVELOPMENT 34 11.4. Safety culture 93 11.5. Fire safety 94 CHAPTER 6. DIGITAL TECHNOLOGIES AND PRODUCTS 38 11.6. Industrial safety 94 6.1. Key achievements in the sphere of digitization 40 11.7. Ensuring the non-proliferation of nuclear materials 95 6.2. Information systems 40 11.8. Emergency preparedness and response 95 6.3. Infrastructure and security 41 6.4. Digital energy 42 CHAPTER 12. ENVIRONMENTAL SAFETY 96 6.5. Data centres and digital products 43 CHAPTER 13. SPECIFIC RISKS AND MANAGEMENT APPROACHES 104 CHAPTER 7. INNOVATION AND DEVELOPMENT OF SCIENCE 44 13.1. Management of key risks 107 CHAPTER 8. NEW PRODUCTS AND BUSINESSES 50 CHAPTER 14. ADDITIONAL INFORMATION 110 8.1. International projects 52 8.2. New products 53 CHAPTER 15. INFORMATION ON THE REPORTING PROCESS 114 8.3. Business Laboratory 56 15.1. Contact details 118 8.4. Isotope business 56 8.5. Electricity sales and distribution 57 8.6. Non-nuclear markets 57 2 POWER ENGINEERING DIVISION 3 1. MESSAGE FROM THE HEAD 1 OF THE DIVISION One of the highlights of the year was the successful achievement of targets set by the government for power generation at Russian NPPs in 2019. Electricity output reached a new all-time high in the history of the Russian nuclear power industry and totalled 208.78 billion kWh, exceeding the 2018 level by more than 4.5 billion kWh. ANDREY PETROV Director General of JSC Rosenergoatom, Head of the Power Engineering Division Dear colleagues, The Power Engineering Division of State Atomic Energy Corporation Rosatom (ROSATOM) demonstrated a strong performance ahead of 2020, which marks the anniversary of the Victory in the Great Patriotic War and the 75th anniversary of the nuclear industry. The Division’s performance against its key performance indicator targets exceeded 100%. One of the highlights of the year was the successful achieve- Strong performance was driven by the knowledge, expertise ment of targets set by the government for power generation and responsible attitude of the Division’s employees. There- at Russian NPPs in 2019. Electricity output reached a new fore, I am convinced that we will successfully accomplish all-time high in the history of the Russian nuclear power in- even the most challenging tasks in the industry related to dustry and totalled 208.78 billion kWh, exceeding the 2018 ensuring the national energy security and providing the nu- level by more than 4.5 billion kWh. Performance against the clear power industry with competitive advantages on both balance target set by the Federal Antimonopoly Service (FAS) domestic and international markets. of Russia (202.7 billion kWh) totalled 103% in 2019. Rostov, Kalinin and Balakovo NPPs contributed the most to power generation at Russian NPPs. A major success of the last year was the commissioning of power unit No. 2 of Novovoronezh NPP-2 30 days ahead of schedule. Another significant milestone was the connection Andrey Petrov of a floating thermal nuclear power plant in Pevek to the grid Director General of JSC Rosenergoatom, and the start of power supply to the power system of the Head of the Power Engineering Division Chukotka Autonomous District. Safety of industrial facilities and personnel remains the high- est priority for the Division. The number of incidents record- ed at nuclear power plants decreased significantly compared to 2018. Occupational safety and health measures at facili- ties that are in operation and under construction enabled us to achieve the LTIFR target in 2019. ROSATOM’s Power Engineering Division continues to develop new products and promote international coopera- tion as it builds NPPs abroad and provides training for NPP personnel, manufactures isotope products for healthcare and develops new digital products. The Division also contin- ues to participate in the development of regions where NPPs are located and provides social security for its employees. 6 POWER ENGINEERING DIVISION 7 2. OVERVIEW OF THE POWER ENGINEERING DIVISION 2 To reduce the risk of accidents involving damage to the re- ROLE OF THE POWER ENGINEERING DIVISION 2.1. GENERAL INFORMATION actor core across the nuclear reactor fleet; IN THE STRUCTURE OF THE NUCLEAR INDUSTRY To prevent workplace fatalities at NPPs; The Division incudes operating nuclear power plants, The Power Engineering Division (the Division) is the sole operator of nuclear power To prevent accidents at NPPs resulting in employee radia- directorates of NPPs under construction, the Capital Projects tion exposure exceeding individual exposure limits; plants in Russia and one of the largest players on the Russian electricity market, ranking: Implementation Branch Office, the Directorate for Construction and Operation of Floating Thermal Nuclear — First in terms of total electricity output among the largest power generation To prevent accidents at NPPs resulting in radioactive Power Plants (FTNPPs), the Technology Branch Office, the releases and discharges exceeding permitted limits. Pilot and Demonstration Engineering Centre for Decommis- companies of Russia; sioning (PDEC) and the Akkuyu Engineering Centre; they all have the status of the Division’s affiliates. — Second in the world in terms of total installed capacity of NPPs. JSC ROSENERGOATOM’S SHAREHOLDERS (AS AT DECEMBER 31, 2019) 208.78 BILLION KWH GENERATED 30.28 GW — TOTAL INSTALLED State Atomic Energy Corporation Rosatom JSC Atomenergoprom IN 2019 CAPACITY OF NPPS 14.0074% 85.9926% The Division’s core businesses are power and heat gener- The Division’s operations are closely linked to the business Rosenergoatom manages the Power ation at its nuclear plants, and operation of nuclear power priorities of ROSATOM and are underpinned by its three Engineering Division, which comprises plants, radiation sources and facilities storing nuclear mate- strategic goals: rials and radioactive substances in accordance with Russian 37 organizations, including 19 subsidiaries legislation. Increasing the international market share; of JSC Rosenergoatom. Reducing production cost and the lead time; Our mission is to supply consumers with power Developing new products for the Russian and and heat generated by the Division’s NPPs; our international markets. top business priority is to guarantee safety. Under the resolution of the Board of Directors of the Division’s holding company, JSC Rosenergoatom (JSC Rosenergoatom, Rosenergoatom), these goals have been supplemented with the following commitments underpinning its safety priorities: 10 POWER ENGINEERING DIVISION 11 ROLE OF THE POWER ENGINEERING DIVISION IN THE STRUCTURE OF THE NUCLEAR INDUSTRY 2 NUCLEAR INDUSTRY 7 STRUCTURE 10 8 3 9 11 1 12 NUCLEAR POWER NEW INDUSTRY PRODUCTS 6 16 13 5 15 14 4 7 R&D MINING FUEL MECHANICAL ENGINEERING DEVELOPING WIND POWER NUCLEAR MEDICINE 1 DIVISION 2 DIVISION 3 DIVISION 8 THE NORTHERN SEA ROUTE 9 10 - Geological exploration - Conversion - Equipment design - Uranium mining - Enrichment - Equipment manufacture - Ore processing - Fuel fabrication - Equipment supply ADVANCED MATERIALS INFRASTRUCTURE - Installation and pre-commissioning DIGITAL PRODUCTS 11 AND TECHNOLOGIES 12 13 SOLUTIONS - Maintenance and upgrade ENGINEERING POWER ENGINEERING ADDITIVE MANUFACTURING PROCESS CONTROL SYSTEMS ENVIRONMENTAL BACK END 4 DIVISION 5 DIVISION 6 14 AND ENERGY STORAGE SYSTEMS 15 AND ELECTRICAL ENGINEERING 16 SOLUTIONS - Design - Power generation - SNF management and engineering at NPPs - Decommissioning - NPP construction - NPP servicing - RAW management 12 POWER ENGINEERING DIVISION 13 BUSINESS GEOGRAPHY 11 36 3 NPP power units with total installed capacity of 30.28 GW 5 Operating power units 7 Decommissioning 208.8 billion kWh electricity output 4 10 Shutdown stage 6 19% 8 Under construction share 2 in the energy mix 9 1 of the Russian Federation 1 2 3 4 5 6 Balakovo NPP Beloyarsk NPP Bilibino NPP Kalinin NPP Kola NPP Kursk NPP 7 8 9 10 11 Leningrad NPP Novovoronezh NPP Rostov NPP Smolensk NPP Akademik Lomonosov FTNPP 14 POWER ENGINEERING DIVISION 15 ORGANIZATIONAL STRUCTURE OF JSC ROSENERGOATOM Central Administration of Rosenergoatom Affiliates of JSC Rosenergoatom – NPPs Affiliates of JSC Rosenergoatom – Directorates Affiliates