OREANDA-NEWS. January 11, 2008.  The power generating company Vostokenergo Ltd (Donetsk) plans to increase electric power generation by 10.3% (by 1.849 TWh) in 2008 compared to 2007 – to 19.8 TWh, Garry Levesley the Generation and Distribution Director of Donbass Fuel-Energy Company (DTEK, Donetsk) , has stated.

"By the end of the year, the company’s volume generation is expected to total about 19.8 TWh which is 8% above the planned amount", he said in the December issue of the corporate newspaper ‘DTEK’.

At the same time, Mr Levesley said that electricity generation was expected to reduce in 2008 due to the reconstruction of power unit No.2 of Zuyevskaya thermal power plant (TPP) and power unit No.5 of Kurakhovskaya TPP.

"Within the generation line, power unit No.2 of Zuyevskaya TPP and No.5 of Kurakhovskaya TPP will undergo long lead reconstruction. It is certain that this will affect the generation volumes of Vostokenergo meaning a reduction in volumes next year", he added.

As it was reported, by the end of 2008, Vostokenergo plans to complete the reconstruction of power unit No.2 of Zuyevskaya TPP and power unit No.5 of Kurakhovskaya TPP with an estimated cost of about $52 m. Measures being taken will make it possible to increase their installed capacity, improve flexibility and reduce specific fuel consumption. The payback period of these projects is no more than five years.

Furthermore, the generating company plans to take measures aimed at raising the performance and reliability, flexibility and extending the equipment’s service life at 11 of 17 power units of all the three TPPs by 2012.

According to Ukrainian accounting standards, from January to June 2007, Vostokenergo’s net profit increased by 24.9% compared with the similar period in 2006 – to UAH 437.929 m, net commodities, works and services sales revenue by 19.6%, to UAH 2 216 837 000 and gross profit by 47%, to UAH 753.357 m.

From January to June 2007, the generating company increased the volume of electricity sold by 9.3% (by 749.1 m kWh) compared with the similar period in 2006 – up to 8 TWh and 811.9 m kWh and the installed capacity utilization rate from 26% to 28.6%.

To date, Vostokenergo operates 17 pulverized coal firing power units with installed capacities from 175 MW to 300 MW at Zuyevskaya, Kurakhovskaya and Luganskaya TPPs. The total installed electric capacity of the power plants of the generating company totals 4060 MW.

DTEK was established in 2005 to manage the power assets of Rinat Akhmetov’s SCM Group (Donetsk). The corporation was delegated strategic functions to manage the enterprises of the group which comprise of a vertically integrated chain from coal production and enrichment to electric power generation and sale.

DTEK manages Pavlogradugol OJSC and Komsomolets Donbassa Mine OJSC (coal production), Mospinskoye Coal Enrichment Plant Ltd, Pavlogradskaya Coal Enrichment Plant Ltd and Kurakhovskaya Coal Enrichment Plant Ltd (coal enrichment), Vostokenergo Ltd (electric power generation), Service-Invest Ltd and Electric Networks Enterprise OJSC (electric power transmission and supply).