4.1. Production capacities

As at the end of 2009, the installed capacity of the Company’s electricity power plants, including TGC-1 subsidiary, Murmanskaya CHPP, amounted to 6,346.95MW and 14,707 GCal/h of installed heat power.

The main generating capacities of TGC-1 are represented by 55 electricity power plants, including 40 HPPs, 14 CHPPs, including Murmanskaya CHPP, and one diesel power plant. Most HPPs are located one by one along the water flow and have a common water regime and unified in structural entities – cascades. Starting from January 1, 2010 a new cascade – Ladozhskie HPPs Cascade of Nevsky Branch – was established by merging Volkhovskaya HPP with Svirskie HPPs Cascade. Besides, Luzhskaya HPP is on the balance of TGC-1. It is located in the Leningrad Region and has 540kW of installed generating capacity. The plant is used for regulating the water flow of the Bystritsa river.

A major part of TGC-1 production facilities belongs to Nevsky Branch, which comprises 11 CHPPs with total installed generating capacity of 2,837MW, total heat capacity of 12,172 GCal/h, and 7 HPPs (including Luzhskaya HPP) with total installed capacity of 665MW. Karelsky Branch comprises Petrozavodskaya CHPP with the installed capacity of 280MW and 689 GCal/h, a 2MW diesel power plant and 17 HPPs unified in four cascades with total installed capacity of 633MW. Kolsky Branch comprises Apatitskaya CHPP with 323MW and 735 GCal/h, and 17 HPPs unified in four cascades with total installed capacity of 1,595MW. In the Murmansk Region TGC-1 has a subsidiary – Murmanskaya CHPP. TGC-1 holds 90.34% of Murmanskaya CHPP voting shares. The installed generating capacity of Murmanskaya CHPP is 12MW, while the installed heat capacity is 1,111 GCal/h.

43 turbine generating units are operated by the CHPPs of Nevsky Branch with 30 hydro generating units operated by HPPs. 56 power boilers operated by CHPPs of Nevsky Branch. HPPs of Karelsky Branch operate 42 hydro generating units, and Petrozavodskaya CHPP equipment comprises three turbine generating units, three boiler units and two water boilers. HPPs of Kolsky Branch comprise 46 hydro generating units with eight turbine generating units and 10 power boilers installed at Petrozavodskaya CHPP. Murmanskaya CHPP operates 2 turbine generating units and 4 power boilers.


In 2009, the installed capacity of Nevsky Branch changed as follows:

1) installed capacity of Central CHPP reduced following removal from operation of the turbine generating unit of PS-3 with
     installed capacity of 3MW;
2) installed capacity of Pravoberezhnaya CHPP reduced following removal from operation of the turbine generating unit
     with installed capacity of 32MW;
3) installed capacity of Vasileostrovskaya CHPP increased by 50MW following commissioning of the new turbine generating unit;
4) installed capacity of Pervomayskaya CHPP reduced by 6MW following the re-labelling with decrease of installed capacity
     of 2 turbine generating units by 2MW and 4MW;
5) installed capacity of Vyborgskaya CHPP increased by 23MW after refurbishment and change of labelling of the turbine
     generating unit no. 4;
6) installed capacity of Volkhovskaya HPP increased by 3MW after refurbishment and change of labelling of the hydro generating
     unit no. 1;
7) installed capacity of Svetogorskaya HPP increased by 30.5MW following commissioning of the new hydro generating unit no. 3.

In Kolsky Branch, installed capacity of Serebryanskie HPPs changed following change of labelling of the hydro generating units of Serebryanskaya HPP-1 with reduction by 3.9MW and change of labelling of the hydro generating units of Serebryanskaya HPP-2 with increase by 6MW. In 2009, the installed capacity of Karelsky branch did not change.


 

 


4.2. Electricity generation

In 2009, the electricity generation of TGC-1 decreased by 0.6% compared to the electricity output of 2008, including a 0.7% reduction in Nevsky Branch, a 3.9% reduction in Karelsky Branch, and in Kolsky Branch it increased by 1.7%. CHPPs electricity generation decreased by 4.5% compared to 2008, while HPPs electricity generation increased by 3.2% to 2008.

In 2009, installed capacity utilization factor of TGC-1 amounted to 48.5%, 55.5% for HPPs, 42.6% for CHPPs.


 



Two major factors determined the overall reduction of electricity generation. The economic crisis had a significant impact on output reduction, following decrease in electricity demand. All this, in turn resulted in price reductions in the wholesale electricity market, and absence of demand on CHPP generation of Nevsky Branch. Secondly, the water level in Karelsky Branch dropped, resulting in a significant decrease of HPPs output. It is also worth noticing that the company output reduction was not significant due to the following reasons: a high water level in the Leningrad Region in 2009 resulted in Nevsky Branch HPPs output exceeding 2008 generation. In the Kolsky Branch, CHPP and HPP output in 2009 exceeded 2008 generation by 1.7%.


 

 

Hydrological situation in regions of the Company’s business activity.
Water level impact on the electricity generation volume



Nevsky Branch

In 2009, total water level in the Leningrad Region as a whole amounted to 10%, therefore the year may be considered a high-water year. In 2009, hydrogeneration of Nevsky Branch amounted to 3,975.908 mn kWh which exceeds the figures of 2008 by 502.507 mn kWh (circa 12%).

Karelsky Branch

In 2009, water intake provision in reservoirs of HPPs of Karelsky Branch averaged 17%. Therefore, the year may be considered a moderately high-water year. Water intake in HPPs reservoirs of Karelsky Branch in 2009 was below the 2008 figures. In 2009, output of Karelsky Branch HPPs amounted to 3,170.179 mn kWh which is 175.177 mn kWh or 5.5% less than in 2008. Generation reduction is a result of decrease in useful intake in HPPs reservoirs.

Kolsky Branch

The volume of annual water intake in HPPs reservoirs of Kolsky Branch amounted to 54.076 cubic km with water provision by 46%. Therefore, the year 2009 may be considered an average year on water levels. Water intake in reservoirs was high throughout the year, except for June and November. Reserves of the hydro resources exceeded the long-term annual average figures. In 2009, HPP generation of Kolsky Branch amounted to 6,813.605 mn kWh which is 109.226 mn kWh or 1.6% more than in 2008.

 

4.3. Heat power generation

In 2009, the Company heat output from collectors increased by 2.2% compared to 2008 as a result of significantly lower temperatures in autumn and winter periods of 2009. In St. Petersburg, for example, average outside temperature during the heating period was 2 degrees Celsius lower than in 2008.


 

 

 


4.4. Analysis of fuel usage by the Company’s CHPPs

In 2009, the major factor which had positive impact on the fuel usage parameters of TGC-1 was mainly a decrease in electricity generation of CHPPs with increase of electricity output by HPPs and reduction of share of electricity generation in condensation mode by 4.3% compared to 2008.

Other factors which had positive impact on the fuel usage are as follows:

However, the following factors had a negative impact on the fuel usage:

In 2009, the following equipment operating statistics were achieved for the CHPPs of TGC-1:


 


4.5. Energy savings and energy efficiency

TGC-1 activities in the field of energy savings and improvement of the energy efficiency are provided as follows:

In 2009, in Nevsky Branch, total of 54 actions to improve the energy efficiency and reduce technological and operational costs at most of the Company’s CHPPs, were implemented. Total savings from these actions amounted to 17,828 tonnes of conventional fuel. Among the most important of them: replacement of water-to-water cooler units of hot water supply at Central CHPP, replacement of the cooling tower at Pravoberezhnaya CHPP, overhaul of unit no. 2 at Severnaya CHPP.

In Karelsky Branch the following activities for energy efficiency improvement were realized in 2009: refurbishment of the water-cooling tower and retrofit of the lightning system at three facilities. Upon commissioning after refurbishment of the cooling tower of Petrozavodskaya CHPP in autumn 2009, total savings received in the fourth quarter amounted to 421 tonnes of conventional fuel. Furthermore, refurbishment of the cooling tower will help to further reduce limitations on operating capacity of Petrozavodskaya CHPP and reduce penalties for the plant operation in the balancing market.

In Kolsky Branch a total of 9 activities aimed at energy savings were provided in 2009: The work provided resulted in total annual savings of 1.2 mn kWh.

 

4.6. Repair and maintenance program

The repair and maintenance program of TGC-1 for 2009 is focused on maintaining the basic generating facilities in fully operational conditions at optimal maintenance and repair costs. The major goal of the repair and maintenance program is to ensure reliable operation of equipment at power plants and heating grids, to meet the applicable industrial safety requirements, and to carry out regulatory and oversight bodies’ orders. The repair work was undertaken in accordance with the approved annual repair schedules for power plants’ generating and auxiliary equipment, buildings, and facilities in accordance with the rules of provision of repair and maintenance of equipment, buildings and facilities of electricity plants and grids.

In the summer of 2009, ten electricity plants and their units of Nevsky Branch and Petrozavodskaya CHPP of Karelsky Branch were shut down for scheduled repairs of the hot water supply and cogeneration systems, general purpose plant equipment, pipelines and facilities.