Electricity and Capacity Sales
In 2012, volume of TGC-1 electricity sales reached 35,017.7 million kWh, increasing by 6.3 % from 2011 levels. The total volume of electricity produced by the Murmanskaya CHPP in 2012 was used for its own needs, while in 2011 the volume sold amounted to 12.4 million kWh. The Murmanskaya CHPP is not a participant in the wholesale electricity and capacity market. The greatest volume of the Company's electricity is sold on the day-ahead market, and in 2012 the day-ahead market share constituted 74.0 % of the total sales volume and 80.3 % of all revenues from the sale of electricity, and also sales volumes on regulated contracts amounted to 14.8 % and the share in electricity revenues amounted to 8.9 %.
The volume of the Company's capacity sold was 5,178 MW/month, which is 5.7 % higher than in 2011. Of the structure of capacity sales in 2012, 56.6 % is for implementation by competitive capacity selection, 27.5 % for implementation under regular contracts, and 15.7 % of capacity was sold under capacity supply agreements. Meanwhile, a large share of revenues from capacity sale is formed by capacity supply agreements at 43.9 %, the contribution to the structure of revenue sales by competitive capacity selection is 39.3 %, and the share of regulated contracts is 16.6 %.
In 2012, the volume of purchases of electricity amounted to 6,813.7 million kWh and the sale of capacity was 133.5 MW/month.
Electricity and Capacity Purchases
Electricity Exports
The unique geographical location of some of TGC-1's power plants allows the Company to export a part of the generated electricity. Export deliveries are carried out to Finland and Norway. Estonia could also become another direction for exports.
Supply of electricity to Finland is carried out:
- from the trunk lines of the Svetogorskaya HPP of the Vuoksa HPPs Cascade in Leningrad Oblast through the 110 kW Imatra-1 voltage line. In connection with reconstruction works on the Lesogorskaya HPP's 110 kW closed switchgear during the first half of 2012, all exports were carried out by the Svetogorskaya HPP's hydroelectric unit, with a maximum capacity of 28 MW. From September 2012, the completion of the main stage of the reconstruction allowed for a supply capacity of 87 MW and from January of 2013 capacity of 110 MW.
- from the trunk lines of the Kaitakoski HPP of the Paz HPPs Cascade in Murmansk Oblast through the 110 kW L-82 voltage line. The maximum supply capacity amounts to up to 75 MW.
Supply of electricity to Norway is carried out:
- from the trunk lines of the Borisoglebskaya HPP of the Paz HPPs Cascade's in Murmansk Oblast through the 154 kW L-225 voltage line. The maximum supply capacity can reach up to 56 MW, but during normal operation has a capacity of 24 MW.
The actual volume of TGC-1's exports in 2012 amounted to 731.8 million kWh, indicating a decrease of 45.3 % in relation to volumes for 2011. Price setting in export contracts is tied to prices on the electricity spot market of the NordPool stock exchange. In 2012, water balance levels in Scandinavia countries were higher than long-term average rates, and the formation of an unfavourable price conjecture served as the main reason for the Company's reduction in exports. In addition, the need for modernization and reconstruction of hydroelectric units at the Lesogorskaya HPP and Svetogorskaya HPP prevented full supply volumes from the Vuoksa HPPs Cascade in 2012.
In 2013, price levels formed on the Scandinavia electricity market by NordPool will also act as a determining factor in the dynamics of electricity export sales volumes.
Another one-year contract was signed with the concern Fortum Power and Heat Oy for 2013. The validity of contracts with the company Scaent Europower Ltd. ended in November, meanwhile the Company signed a contract under similar terms for 2013 – 2014 with RAO Nordic Oy. While minor amendments were made, the overall framework of the contract remained relatively unchanged.
Heat Sales
In 2012, the useful output of heat to consumers from TGC-1 stations, including the Murmanskaya CHPP, amounted to 26,667.7 thousand GCal, which is 1.3 % higher than analogous figures of 2011. The useful output of heat, excluding output from the Murmanskaya CHPP, was 24,566.8 thousand GCal. In 2012 overall, revenues from TGC-1's supplied heat increased by 5.4 % to RUR 21,073.6 million.
Current outline of heat sales by Company branches
Nevsky Branch
Heat sales activity for TGC-1's Nevsky Branch is based on an agency contract of the affiliated company Saint Petersburg Heating Grid JSC.
Furthermore, Saint Petersburg Heating Grid renders services to TGC-1 in the transfer of heat from TGC-1's CHPPs to end users at that buying heat from TGC-1 to compensate losses in heating networks.
The length of the heating mains on Saint Petersburg Heating Grid's amounts to 617.5 km of pipe (Saint Petersburg and Novoe Devyatkino). The length of rented heating mains is 7.4 km (Murino village). The length of district heating mains is 1,833.1 km of pipe.
Kolsky Branch
Heat sold by TGC-1's Kolsky Branch from the Apatitskaya CHPP is delivered to consumers according to heating supply contracts through the heating network of Apatityenergo JSC.
In order to fulfil its heating contracts, TGC-1 concluded an agreement with Apatityenergo for heat transfer, which means that TGC-1 pays for the transit of heat and Apatityenergo purchases heat for compensation of losses in heat mains.
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Karelsky Branch
Karelsky Branch leads the sales activities of heat provided by the Petrozavodskaya CHPP.
Since sales of heat are conducted at the boundary of ownership balance and the operational responsibility of TGC-1 and the consumer, according to the heat supply contract, there are no contracts for transfer of heat or for purchase of heat losses by a heat mains-operated company. 98 % of heat is sold wholesale to the buyer-reseller Petrozavodsk Utility Systems JSC.
The total length of the Karelsky Branch's heating mains, calculated as one pipe, is 41.3 km.
Heat tariffs according to consumer groups are approved by the regional regulatory authorities of Saint Petersburg, Leningrad Oblast, the Republic of Karelia and Murmansk Oblast.
