generating records annual report 2014

Business Model

The business model contains the general description of the Concern’s internal and external processes and is provided as a transformation of input resources to tangible and marketable results (cost for stockholders, products, and services).

The Concern’s business processes include two main areas:

  1. Main processes.
  2. Development processes.

The business model reflects processes and resources participating in the value chain.

The Concern’s value chain forms part of Rosatom State Corporation common industry processes organized in accordance with fuel and equipment life cycles.

KEY PARTNERS
AND RESOURCES
PROCESSES AND ASSETS
PRODUCTS, SALES CHANNELS,
AND CONSUMERS
KEY PARTNERS
  • Construction, assembly, and repair organizations and enterprises;
  • Supplier of nuclear fuel, and plants involved in spent nuclear fuel;
  • Suppliers of systems and equipment;
  • Design organizations;
  • Engineering departments;
  • Research and development centers.
RESOURCES
  • Financial;
  • Human;
  • Natural.
KEY PROCESSES
  • Operation of existing NPPs;
  • Construction management of new NPP units;
  • Sale of electrical and thermal power;
  • Service of NPPs designed in Russia abroad.
DEVELOPMENT PROCESSES
  • Organization/performance of R&D work;
  • Modernization of existing NPPs;
  • Development of international activity.
MAIN ASSETS
  • 33 units with total installed capacity of 25.2 GW;
  • Intellectual Property.
PRODUCTS
  • Electrical and thermal power;
  • Services.
SALES CHANNELS
  • Wholesale market
    for electricity and power;
  • AtomEnergoSbyt OJSC;
  • Regional market for thermal power;
  • Rusatom Service CJSC.
CONSUMERS
  • Major industrial enterprises;
  • Guaranteed suppliers;
  • Energy supply companies;
  • End consumers.

KEY PARTNERS AND RESOURCES

CONSTRUCTION, ASSEMBLY, AND REPAIR ORGANIZATIONS AND ENTERPRISES

Organizations and enterprises providing services for the Concern during construction and operation of the NPPs.

SUPPLIERS OF NUCLEAR FUEL AND PLANTS THAT SPECIALIZE IN SPENT NUCLEAR FUEL REGENERATION

Companies supplying reactor fuel assemblies (FAs) to the NPPs and accepting spent nuclear fuel for storage and reprocessing.

SUPPLIERS OF SYSTEMS AND EQUIPMENT

First of all these are the companies manufacturing equipment and management and control systems for the NPPs, as well as third party suppliers of materials and services which help the Concern to obtain materials and services from the open market.

DESIGN ORGANIZATIONS

Design institutions involved in the development of preliminary and detailed design documentation for the NPPs scheduled for construction.

ENGINEERING DEPARTMENTS

Industry companies that deal with engineering reactor plants for new NPP power units, auxiliary equipment, and its components.

RESEARCH AND DEVELOPMENT CENTERS

Research, development, design, and engineering organizations of nuclear power industry providing research and technical support to nuclear power plants and striving to increase reliability, safety, and economic efficiency of NPP power units. This work also includes developing intelligent systems, software and hardware complexes, simulators, automated process control system complexes, NPP technical diagnostics, and virtual modeling systems for new projects.

FINANCIAL

Revenues from the federal budget, incomes from the wholesale market for electricity and power, credit resources from banks and financial institutions necessary for carrying out financial and economic activity.

HUMAN

The Concern uses the open labor market to select labor resources with required competence. However, specialized skillsets absent in the open market are formed by the Concern in-house.

NATURAL

Mainly water resources required for electrical power and heat production process at NPPs, as well as land plots for new NPP power units construction.

The Concern strives to further reduce the environmental impact of its activity.

KEY PROCESSES

OPERATION OF EXISTING NPPS

Management of equipment, nuclear fuel, and the operating process to produce electrical power and heat for sale.

NEW NPP POWER UNITS CONSTRUCTION MANAGEMENT

Formation of the Concern’s fi xed productive assets and infrastructure from the investment plan to delivery of a finished asset for operation.

ELECTRICAL AND THERMAL POWER SALE

Electrical power sale in the Electrical Power (Capacity) Wholesale Market (ECWM) and directly to end consumers of electricity and heat.

DEVELOPMENT PROCESSES

Organization/performance of R&D work by the Concern aimed at resolving long-term tasks of the Concern’s production and technical research activity to the extent of modernization of NPP power unit design and construction processes, increase of service life of main equipment, implementation of new materials and processes, and development of new reactor units.

MODERNIZATION OF EXISTING NPPS

Activity aimed at increasing operating performance of NPPs, subject to unconditional safety at all stages of their life cycle.

DEVELOPMENT OF INTERNATIONAL ACTIVITY CONSISTS OF FIVE MAIN BLOCKS:

Marketing – collection and analysis of information to determine parameters of effective demand, desired commodity (consumer) properties, target markets and consumers, and promotional channels.

Service development – the Concern’s activity on forming a line of services with required consumer properties, approaches to pricing and interaction with target clients.

Sales and contracting – corresponds to activity on service promotion, consumer search, and interaction with consumers up to signing a contract.

Production (provision) of services – performance of contractual obligations up to accepting the provided services and receiving the payment.

After-sale service – includes reclamation processing and provision of paid and free additional services to ensure competitive performance as part of long-term interactions with consumers.

PRODUCTS, SALES CHANNELS, AND CONSUMERS. VALUE CREATION FOR STAKEHOLDERS

The Concern uses sales channels for sale of products (electrical power and heat) and services to consumers.

CONCERN’S KEY PARTNERS
PO Mayak FSUE Reprocessing of spent nuclear fuel of nuclear reactors.
NIAEP JSC The focus of the NIAEP OJSC – Atomstroyexport CJSC (ASE CJSC) united company is facility design and construction project management. The portfolio of implemented projects comprises of more than 20 power units under construction or simultaneously designed power units in Russia and abroad.
ATOMPROEKT JSC The only company in Russia designing NPPs with various types of nuclear reactors: VVER, BN, and RBMK, as well as thermal power facilities.
Atomenergoproekt JSC Engineering company, general designer and general contractor of the Novovoronezh NPP-2, general contractor of the Leningrad NPP-2, and general contractor of the Smolensk NPP-2.
TVEL JSC TVEL fuel company supplies nuclear fuel to the entire Russian market for power and research reactors, as well as for power units of nuclear icebreaker fl eet.
GHK FSUE Areas of interaction:
  • Site preparation and design support during creation of the facilities producing mixed uranium plutonium oxide fuel (MOX) for fast breeder reactors;
  • VVER-1000 and RBMK-1000 spent nuclear fuel management;
  • Industrial production of MOX fuel;
  • Creation of an experimental test center for reprocessing of spent nuclear fuel and a process complex for nuclear fuel cycle closure;
  • Research and development work.