Gazprom dominating Russian power market

The Gazprom headquarters hosted today Press Conference “Gazprom’s Power Generation Strategy” held on the threshold of the Company’s annual General Shareholders Meeting. Taking part in the Press Conference was Denis Fyodorov, Head of the Directorate for Power and Heat Generation of Gazprom and Director General of Gazprom Energoholding.

It was highlighted that Gazprom Group was the leader of the Russian power market in terms of the aggregate installed electric (some 38 GW) and thermal (over 70 thousand Gcal/h) capacity.

In 2013 the main companies of the Group (MosenergoTGC-1 and OGK-2) produced 158.6 billion kWh of electricity (5 per cent down compared to 2012) and 99.7 million Gcal of heat (1.4 per cent down). The main reasons for lower power output are the decrease in generation caused by a lighter load on inefficient power units as well as a slump in electric power demand. Heat generation rates were affected by warm weather.

The total 2013 proceeds of Mosenergo, TGC-1 and OGK-2 under the IFRS amounted to RUB 338.6 billion (4.6 per cent up), EBITDA – RUB 51.7 billion (11.7 per cent up) and net profit – RUB 18 billion (15.4 per cent up). At 2014 year-end the total power generated by these three companies is expected to make up 167.5 billion kWh (5.6 per cent up compared to power generated in 2013) of electricity, and 101.6 million Gcal (2 per cent up) of heat. According to the IFRS, total revenues are expected to be RUB 354 billion (4.5 per cent up), EBITDA – RUB 53.7 billion (3.8 per cent up).

Last year 420 MW of new generating capacity was commissioned in Russia: the Adler TPP (OGK-2) including two PGU-180 power units with 360 MW in aggregate capacity, two hydro power units of TGC-1 at the Lesogorsk and Svetogorsk HPP with 60 MW in aggregate capacity.

2013 was marked by a milestone event – Moscow United Energy Company (MOEK), the leading infrastructure company of the Russian capital city, supplying heat and hot water to Moscow and several Moscow suburbs, joined Gazprom Group.

The Press Conference also addressed the issues concerning the operation of Gazprom’s power facilities in Russia’s regions.

Gazprom dominating Russian power market
Gazprom dominating Russian power market

Thermal plant, Moscow, Lyublino district

Gazprom website Editorial Board

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