JSC Atomenergoprom Annual Report

BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 46 sort in the town of Zheleznogorsk (Kursk Region) and became a supplier of last resort in the Republic of Khakassia as from 1 September 2022. JSC Atom Energy Trade and LLC REC provide services to more than 60,000 legal entities and more than 2 million households in Russia. In 2022, retail electricity sales by the branches and standalone divisions of JSC Atom Energy Trade and LLC REC totalled 16.8 billion kWh, up by 5% compared to 2021 (16.0 billion kWh). For details, see the section 'Power Engineering Division'. public. The Company has initiated projects to create a network of radionuclide therapy and nuclear medicine centres in Russia and abroad, which will provide high-quality healthcare services to patients. JSC Atomenergoprom is a major supplier of isotopes and radiopharmaceuticals for nuclear medicine in Russia. 30% of the world's reactor units producing medical radioisotopes are located in Russia. The Russian nuclear industry accounts for 25% to 50% of global radioisotope production (for some types of radioisotope products, its share totals 100%). The Company's long-term goal is to rank among the top five global suppliers of isotope products for medical applications, including brand-name radiopharmaceuticals and generic drugs. In addition, the Company is a major player on the market for medical device sterilisation using radiation processing technologies. JSC Atomenergoprom also produces and actively upgrades medical equipment for diagnostics and therapy. By 2030, the Company plans to become a National Champion in a number of segments, including MRI equipment, 6 MeV and 18 MeV linear particle accelerators, cyclotron and radiochemistry facilities, SPECT scanners and brachytherapy equipment. For details, see the section 'Business Diversification'. Wind power market The global wind power market is growing steadily in terms of both capacity additions and investment activity. In 2021, wind power capacity increased by more than 92 GW, while in 2022, capacity additions exceeded 74 GW28. According to the most conservative estimates by the International Energy Agency, wind power capacity will increase from 0.93 TW in 2022 to 1.83 TW in 2030 and 3.56 TW by 205029. Wind power capacity additions may average 110 GW per year. As part of the Russian programme to support renewable energy based on capacity supply agreements on the wholesale market, the capacity of onshore WPPs to be commissioned by the end of 2024 is expected to total 2.74 GW, with a further 3.9 GW to be commissioned between 2025 and the end of 2035. According to JSC Atomenergoprom's estimates, by 2035, the total installed capacity of onshore WPPs in Russia might reach 7 GW. In 2022, the 60 MW Berestovskaya WPP was put into operation and started to supply electricity on 1 January 2023. The construction of two WPPs with installed capacity totalling 220 MW (the Kuzminskaya WPP (160 MW) and stage 1 of the Trunovskaya WPP (60 MW) was started in the Stavropol Territory. JSC Atomenergoprom's share on the Russian wind power market totals about 34%. Nuclear medicine market For details, see the section 'Business Diversification'. In the reporting year, the global nuclear medicine market totalled ~ USD 13.2 billion and is expected to exceed USD 33 billion by 2030 (this figure refers to the total value of healthcare services provided globally). The global market for nuclear medicine equipment totals USD 2.9 billion and is expected to reach USD 5.6 billion by 2030. The volume of the Russian nuclear medicine market exceeds RUB 100 billion, and the market is expected to grow steadily until 2030 and reach approximately RUB 162 billion: according to JSC Atomenergoprom's forecasts, the growth rate will total up to 8-9% per year, given an increase in compulsory health insurance contributions. In the coming years, key growth drivers will continue to include the implementation of the Healthcare National Project, nuclear medicine procedures and high-technology healthcare services being prescribed more often, as well as the development of healthcare infrastructure and, more specifically, the construction of nuclear medicine centres specialising in radionuclide diagnostics and therapy. In a number of Russian regions, steps are being taken or plans have been developed to provide existing healthcare institutions with state-of-the-art nuclear medicine equipment for diagnostics and therapy. The Company sees considerable potential for the development of nuclear medicine services for the general GRI 3-3 Waste management market ROSATOM is supporting the development of an integrated system for the management of hazard class 1 and 2 waste in Russia. This initiative has been launched under the Infrastructure for the Management of Hazard Class 1 and 2 Waste Federal Project, which forms part of the Ecology National Project. Hazard class 1 and 2 waste includes 485 types of waste, such as mixtures of inorganic salts, oxides, hydroxides, acids (waste from the metals, manufacturing and mechanical engineering industries), mercury-containing waste (mercury-vapor lamps and mercury thermometers, as well as mercury-containing industrial waste), and waste containing organic components. About 350,000 tonnes of this waste is generated in the country every year; furthermore, experts predict that by 2030, hazard class 1 and 2 generation will reach 413,000 tonnes. As part of the Infrastructure for the Management of Hazard Class 1 and 2 Waste Federal Project, ROSATOM and JSC Atomenergoprom are developing infrastructure for hazard class 1 and 2 waste processing, namely a network of environmental technology parks, which will be equipped with the best state-of-the-art safe technological solutions. The Company, through JSC Rusatom Greenway, has started to build three modern industrial facilities (environmental technology parks). ROSATOM will build a total of seven modern industrial facilities (environmental technology parks), four of which will be built at chemical weapons destruction sites, while the remaining three are greenfield facilities. The environmental technology parks will have a total throughput of 350,000 tonnes of waste, which will help to address the national shortage of capacities for the processing of these classes of waste. In fact, this will provide a resource base for a new circular economy in Russia. The design and selection of process lines is underpinned by the principle that recycling is a priority: two thirds of all waste will be recycled, and the resulting materials will be commercialised. The first two environmental technology parks in the Kurgan and Saratov Regions are scheduled to be put into operation by the end of 2023. By the end of 2024, the Company will launch environmental technology parks in the Kirov Region and the Udmurt Republic, as well as greenfield facilities in the Irkutsk, Tomsk and Nizhny Novgorod Region. For details, see the sections 'Business Diversification' and 'Safe Operation'. 28. IRENA, Renewable capacity statistics 2023. 29. IEA, World Energy Outlook 2022. BUSINESS STRATEGY JSC ATOMENERGOPROM / ANNUAL REPORT / 47