Situation in Electric Power Industry
Rosenergoatom Concern OJSC is one of the largest companies of the electric power industry in the world and the only organization in Russia mainly acting as an operator of nuclear power plants.
ELECTRIC POWER AND CAPACITY MARKET
After 2014 the installed capacity of electric power plants of the Unified Energy System (UES) of Russia has increased by 2.6% and amounted to 232.45 GW as of January 1, 2015.
The total installed capacity of the Concern’s
nuclear power plants is 25.2 GW which made
10.86% of the total capacity of the UES of Russia in 2014.
New capacity introduced at electric power plants of the UES of Russia in 2014 takin into account electric power plants of industrial facilities, totaled 7,296.31 MW. 1,762.6 MW of inefficient and obsolete generating equipment was decommissioned in Russia in 2014 (NPP capacities were not decommissioned in 2014).
On December 27, 2014 the turbo generator of 3rd power unit of the Rostov NPP with the installed capacity of 1,000 MW was synchronized with the energy system. On February 2, 2014 the BN-800 reactor at the power unit No. 4 (under construction) of the Beloyarsk NPP was physically launched. This is a non-serial type of fast breeder reactor with sodium cooling.
In terms of installed capacity of the NPPs and the amount of operating power units the Concern holds the 2nd place in the world among leading global companies operating NPPs (1st place – EDF, France).
In 2014 electricity generation in Russia totaled 1,024.9 bln KWh which is 0.1% more than in 2013. Furthermore has been the Concern’s NPPs generated 180.5 bln KWh which is 4.8% more than the amount of electrical power generated in 2013.
Over many years the Concern has been consistently keeping the leading position among Russian generating companies in terms of installed capacity and power generation.
- On December 27, 2014 power unit No. 3 of the Rostov NPP was introduced. The data on generation in 2011-2013 includes 33 power units.
- . In March 2012 following the acquisition of Constellation Energy the amount of Exelon’s units increased up to 22 at 13 sites. The data on generation in 2011-2013 includes 17 power units.
- In May 2011 4 power units (Nos. 1-4) of the NPP Fukushima Dai-Ichi which were unfi t for use were shut down. In December 2013 power units Nos. 5 and 6 of the NPP Fukushima Dai-Ichi were also shut down.
|Top 6 Companies: Number of Reactors, Installed Capacity as of End of 2014, and Electric Power Generation in 2011-2013|
|№||Operator company||Int’l abbreviation||Country||Number of power units||Number of sites||Installed capacity, net MW (e)||Installed capacity, gross MW (e)||Generation in 2013 GWh (generation)||Generation in 2012 GWh (generation)||Generation in 2011 GWh (generation)|
|(as of December 31, 2014)|
|1.||Électricité de France||EDF||France||58||19||63 130||65 880||405 898,51||407 437,88||423 509,48|
|2.||Rosenergoatom||REA||Russia||34(33)1||10||23 643||25 242||161 718,08 (supply) 172 217,4 (generation)||166 293,44 (supply) 177 290,4 (generation)||162 018 (supply) 172 681,3 (generation)|
Korea Hydro and Nuclear
|KHNP||South Korea||23||6||20 739||21 628||132 465,24||143 549,92||147 763,46|
|4.||Exelon Corporation||Exelon||USA||22(17)2||13 (10)||17 373||18199||147 422,71||145 175,47||144 998,51|
|5.||NNEGC Energoatom||NNEGC||Ukraine||15||4||13 107||13 835||78 166,16||84 885,59||84 893,98|
|6.||Tokyo Electric||TEPCO||Japan||113||3||12 233||12 612||0||3 345,54||42 983,66|
The share of NPPs in power generation in the total generation of the UES of Russia
(excluding isolated energy systems) in 2014 was distributed as follows:
|Unified Energy System (UES)||Total power generation, mln KWh*||Power generation by NPP, mln KWh||Share of NPP generation, %|
|Russia||1 024 943,4||180 255,2||17,6|
|Central UES||239 225,6||94 472,4||39,5|
|Volga UES||105 035,3||29 819,5||28,4|
|Northwest UES||102 464,2||35 734,8||34,9|
|South UES||84 755,5||15 704,9||18,5|
|Urals UES||259 762,4||4 523,6||1,7|
Source: Report of the System Operator on Operating UES in 2014 (http://so-ups.ru).Download XLS
SALES MARKET AND PRODUCT CONSUMERS
The Concern’s products (electricity and capacity) is sold in the Electrical Power (Capacity) Wholesale Market (ECWM) which is a sphere of circulation of special goods of electric power and capacity within the UES of Russia.
The buyers are sales companies which for the major part have a status of guaranteed suppliers and a number of major consumers (for details see clause 2 of the Register of Entities of Wholesale Market for Electricity (Power)).
The composition and amount of buyers of electricity and power capacity of the Concern are not constant and do not depend on the Concern’s preferences. The amount, composition, and structure of consumers are determined by a commercial operator of the ECWM (Trading System Administrator OJSC) each year during centralized contractual campaign of the ECWM (and in case of introduction of significant amendments to regulations determining the procedure for the ECWM functioning within a calendar year and requiring changes in contractual relations – more than once per year). In order to ensure compliance with the principles of proportionality and fair distribution of contracting agents under the contracts supporting sale of electricity and capacity at regulated prices, the projects pending distribution undergo approval procedure by market participants during preparation for the contractual campaign. During this approval procedure the projects are optimized taking into account the interests of market participants.
Demand for electricity and power capacity supplied by the Concern in the ECWM is generally steady with some deviations due to seasonal changes in electricity consumption and water content conditions with the appropriate change in hydrogeneration in the volume of electricity production on a scale of the Unified Energy System of Russia.
In geographical terms the market covers the area of the unified energy system of Russia and is divided into two pricing zones: the first (the area of Europe and the Ural which includes a number of regions of geographical Siberia, such as Tyumen Oblast and a part of Tomsk Oblast) and the second pricing zone (the most part of Siberia and Trans-Baikal). All NPPs, except for Bilibino, are located in the European part of Russia and belong to the first pricing zone of the wholesale electricity market.
In addition to special regions electricity is bought at regulated prices by guaranteed suppliers throughout Russia in the amount intended for the population. Contracts with other buyers are free, and their prices and scopes are established by participants themselves.
In 2014 the Concern supplied electricity under regulated contracts, to the day-ahead market, to the balancing market, and under free contracts. Power capacity was supplied under regulated contracts, capacity sale contracts executed following competitive selection of price quotes for capacity sale, and capacity sale contracts of new NPP facilities.
In 2010 1,915 contractswere concluded with consumers of the wholesale market to obtain funds totaling 4.4 tln rubles (excl. VAT) from sales of capacity generated by 8 new NPP units from 2011 to 2038.
As of 2015 all the NPP units have passed the competitive selection (taking into account the increased number of unselected capacity following competitive selection in 2014 (15 GW).
In 2014 the sales of electric power totaled 183.046 bln KWh. For regulated activity the sales of electric power totaled
30.427 bln KWh — For all other markets the sales of power totaled
152.618 bln KWh , including:
• 152.443 bln KWh – to the wholesale market;
• 0.175 bln KWh – to the retail market.
generated by NPP new facilities were effected at the rates (prices) established by the FTS of Russia for the Concern for 2014.
In 2014 the actual volume of electricity generated by the NPPs amounted to 180.5 bln KWh, with the planned value of 168.3 bln KWh recorded by the FTS of Russia, among which:
- 180.3 bln KWh (or 99.88%) were supplied to ECWM;
- 0.22 bln KWh (or 0.12%) were supplied to the retail market (generated by the Bilibino NPP).
DEVELOPMENT OF POWER SALES IN 2014
As a part of comprehensive measures of the Concern’s heat sales concept a pilot project was implemented in 2014 resulting in Beloyarsk nuclear power plant obtaining the status of a unified heat supply organization in the urban district of Zarechny of Sverdlovsk Oblast. The awarding of unified heat supply organization status to the nuclear power plant will make it possible to increase reliability of heat supply to end consumers of thermal energy.
As part of implementation of the strategy of “entry into retail markets of electric power”, in 2014 AtomEnergoSbyt JSC won the competitive process and was awarded the status of the guaranteed supplier in Kursk, Smolensk, Tver, and Murmansk Oblast. Moreover, in order to divide regulated and non-regulated types of activity Atomenergopromsbyt JSC was created. Nuclear industry enterprises and other consumers which had previously received power supply from AtomEnergoSbyt JSC were transferred to the new company for service.