Investor Presentaiton
En+
GROUP
BUSINESS REVIEW
En+ Group Annual Report 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
FINANCIAL STATEMENTS
The Group is involved in
heat and electricity sales
directly to end-users
Retail
The Company, through its subsidiaries LLC
Irkutskenergosbyt, JSC Volgaenergosbyt
and LLC MAREM+, purchases electricity
on the wholesale market (from both
the generating facilities of the Group
and third parties) and then resells it
on the retail market to both industrial
consumers that do not have access to
the wholesale market and residential
consumers. The Group is involved in heat
and electricity sales directly to end-users.
In 2007, the Group's subsidiaries in
the Irkutsk and Nizhny Novgorod
Regions were granted the status of
guaranteeing suppliers within these
regions. In accordance with this status,
the Group is under an obligation to
conclude an electricity supply contract
with any consumer located within the
boundaries of these operational areas
that applies for such a contract.
Electricity transmission
and distribution
As at 31 December 2021, the Group
operated a transmission and distribution
system of approximately 41,600 km of
high and low voltage lines with an annual
output of approximately 50.5 TWh.
Through this system the Group transmits
electricity generated at the Angara
cascade HPPs to wholesale and retail
consumers, including RUSAL's aluminium
smelters. Other generation facilities
of the Group, such as Krasnoyarsk
HPP and Avtozavodskaya CHP, do
not use this transmission network,
as they are not located within close
geographical proximity to the network.
Coal production
The Coal segment provides the
Group's CHPs with a self-sufficient coal
resource base and covers En+ Group's
internal coal demand. A portion of
the coal production is sold to third
parties both in Russia and abroad.
Coal prices in the domestic market
are determined based on the level of
competition and demand from various
categories of consumers in the region
(energy, utilities, other industrial
enterprises, and the general population).
2.1 TWh
Additional hydropower
output enabled by the
New Energy programme
Projects
The New Energy
modernisation programme
New Energy is a programme aimed
at modernising the power plants of
the Angara and Yenisei HPP cascade
with a view to ramping up the energy
output from the same volume of water
passing through the hydropower
turbines. Another objective is to reduce
the Company's carbon footprint by
curbing the greenhouse gas emissions
of the Company's coal-fired power
plants. In 2021, the programme
has enabled En+ Group to increase
its power output by 2.1 TWh.
The programme assumes a large-scale
overhaul and replacement of the core
equipment of the Company's largest
Siberian HPPs, i.e. the Krasnoyarsk,
Bratsk, Irkutsk and Ust-Ilimsk HPPs.
The programme envisages modernisation
of hydroelectric generation units and
the replacement of runners. Increased
efficiency will be provided by the
new runners' improved blades and
by utilising new materials, with an
efficiency rate increase of up to 8%
depending on the runner. Higher safety
and better reliability of the HPPs is
another priority of the modernisation
programme, which will mitigate the risks
associated with cavitation and address
the HPP generator wear problem.
The modernisation programme investment
is expected to total RUB 21 billion in the
period to 2026 (around USD 282.7 million
as at 31 December 20211), including
funds already invested in the project
(RUB 13 billion as at 31 December 2021).
The HPP efficiency will match that of
the world's best performers after the
New Energy programme is completed,
providing for better reliability and a higher
quality power supply to our Siberian
consumers. On top of the expected
economic improvement, the New Energy
programme will positively impact the
environment of the Siberian regions in
which we operate. Hydroelectric energy
is used to partially replace the energy
generated by coal-fired power plants
and thus prevent GHG emissions of
2.44 mt of CO2e in 2021. The modernised
turbines also incorporate an up-to-
date runner design that prevents the
leakage of turbine oil into water.
In 2021, the Company launched a new,
the second in a row hydroelectric
unit at the Irkutsk HPP and began
works on the next hydroelectric unit
replacement. The Company replaced
one runner and started works for the
replacement of another runner at the
Bratsk HPP. Two new runners were
delivered to the Krasnoyarsk HPP and
technical re-equipment works began.
42
Bratsk HPP
Ust-Ilimsk HPP
(18 generation units) (16 generation units)
PROJECTS COMPLETED AND UNDERWAY
13 of 18 runners
4 of 16 runners
Krasnoyarsk HPP
(12 generation units)
replaced (2007-2021) replaced (2014-2018) replaced (2016-2019)
5 remaining runners
to be replaced by 2026
Irkutsk HPP
(8 generation units)
2 generation units
replaced in 2020-2021
2 of 12 runners
6 of 12 runners to be
replaced by 2025
2 of 8 generation units
to be replaced by 2023
Calculated based on USD/RUB exchange rate of 74.29 as at 31 December 2021.
APPENDICES
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