OREANDA-NEWS. On 04 May 2008 was announced, that this year is for Irkutskenergo very important: in January the power company loaded capacity of thermal power stations in full that allowed to break a record set during the Soviet times. ‘The company worked on the top of its opportunities’, General Director of Irkutskenergo Sergey Emdin says. New conditions have distinctly shown the powermen what reserves they dispose of and what requires updating. The second result of the last winter became understanding of the fact that the deficiency of energy predicted for 2009-2010 gradually becomes a reality. Sergey Emdin told Elena Lisovskaya how the company plans to compensate growth of power consumption and threw light opon the management's vision of Irkutskenergo's future during the reform of power sector.

The intense winter

‘Sergey Vladimirovich, this winter thermal power stations of Irkutskenergo were fully loaded that allowed to break a record set 10 years ago and to generate the capacity of 3,443 MW. What factors preceded this?’

‘Really, this year became significant for the company. Irkutskenergo started it on the peak and with the indiicators of the generated capacity which have not been reached for a long time. Since the nineties, the country observed sharp decrease in capacity; in fact, many industrial enterprises either completely disappeared or reduced generation. Nevertheless, since 1999-2000 the situation started improving and by the amount of generation of electric power Irkutskenergo gradually began to reach the level of the Soviet times. Besides, little precipitations of this year allowed to load the thermal power stations in full. For example, Thermal Power Station-10 which has not been loaded for 10 years, this year operated on the peak of 1,100 MW of capacity for the first time in its history.’

‘Did the company have to involve any additional resources to reach the threshold?’

‘There was no such necessity; it was reached thanks to the set of economic and natural factors of the region. However, all employees of the company - both in the head office and in branches - worked very effectively.’

‘Are there any problems which became obvious during this period?’

‘There were problems; we tried to solve them operatively. The most unpleasant moment were connected with difficulties with coal transportation. They arose due to the fact that coal miners did not have an opportunity to transport by rail the volumes necessary for us. As a result, it turned out that in November-January the stocks of fuel at some facilities would last them no more than seven days. But today, I think, with purchase by our shareholders (Evrosibenergo Ltd. - Vostochno-Sibirskaya Pravda's comment) of Vostsibugol Company, the situation will radically change, and many problems will disappear. Vostsibugol will become for us an allied structure though Irkutskenergo will not perform management by it.’

‘What new opportunities did Irkutskenergo obtain owing to this purchase?’

‘Earlier the powermen's property included two pits - Golovinsky pit in Ust-Orda district and Irbeisky pit in the Krasnoyarsk region. They provided the power company with own coal by 10 - 15 %. Now, together with Vostsibugol, this parameter equals 90 %. Now Irkutskenergo has an opportunity to build long-term plans for raw material provision. We obtained the main advantage - independence from fluctuations of the prices in the market of solid fuel: we obtained raw material safety. Next winter we plan to build a closed chain with coal suppliers affiliated with the company. The optimum logistical plan will allow the power supply system even during the most intense time to provide itself with coal, without creation of global stocks of fuel.’

Power deficiency becomes a reality.

‘What is your forecast for 2008 concerning power consumption?’

‘The increase in comparison with 2007 is expected, in particular, due to the fact that production process at IrkAZ will be finally started up. Today we can speak about growth of production and supply of the electric power. Thus, in the first quarter of 2008, in comparison with the similar period of the last year, generation of the electric power increased by 7 % (it equaled 17,216.7 million kW-h. - Vostochno-Sibirskaya Pravda's comment), and productive supply increased by 7.9 % (it equaled 14,392.5 million kw-h. - Vostochno-Sibirskaya Pravda's comment). The natural increase in the Irkutsk area will be considerable - at least 2-3 %. These figures can increase, if the winter is cold. And as a whole, the volumes of industrial production in the region will grow; Thus, our stations will be loaded more. We will have to involve the capacities which were not loaded earlier; to increase proportional loading at power generations, the operation and repair of which were more expensive, than at hydroelectric power stations.’

‘Did last winter change the forecasts concerning the power deficiency in 2009-2010?’

‘They remained the same. But if earlier we spoke about the long-term prospect, now we simply feel this deficiency.

Therefore, our plans on introduction of new capacities become very demanded. If earlier they were more likely a "theory", “plans for the future”, now they are a reality. Irkutskenergo developed the program on covering long-term deficiency of capacity. It assumes closing electric boiler houses in Irkutsk and Bratsk that will allow to release the capacity. One of such local projects is opening the fourth thermal main with cable bridge in Irkutsk. That has already allowed to release nearby 300 - 400 MW of energy which was used for heating the city earlier, and can be now directed to the needs of the industry. Irkutsk will receive heat from Novo-Irkutsk Thermal Power Station.

The company has planned construction of new capacities. That is a new block at the thermal power station of 330 MW capacity, new coal thermal power station of 990 MW capacity, and also construction of new gas thermal power stations for the total capacity of 1,200 MW. In order to increase capacity, we also plan to reconstruct the generating equipment. We have examined the projects developed earlier. We figured out, which of them can be realized: at what station it is possible to increase capacity of the turbine, at which boiler it can be done, and so on. Thus, only this year we plan to "collect" 300 - 400 additional MW. These projects are rather cheap; it is important that they can be executed quickly enough. That means that the part of these capacities will be received by our consumers already next winter.’

‘How much will the program for covering future deficiency of capacity cost for the company?’

‘Sources of financing are combined. They are borrowed funds and profit of the company. In 2008, in particular, only in Irkutskenergo the investments into maintenance and development of capacities, network facilities will equal around 6.4 billion rubles (in 2007 this figure was hardly above 5 billion) and if we take the consolidated expenses together with "Irkutsk Grid Company", they will amount to 12 billion rubles. The funds are rather large even at this stage. But our strategic purpose is to carry out additional issue of shares of Irkutskenergo. The received money will be directed at more global projects - this is almost 90 billion rubles.’

‘Will the company's plans change in conditions of power deficiency?’

‘I do not think that there will be revolutionary changes. Evolutionary toughening of requirements, first of all to the personnel is planned. Additional training both of our employees and contractors is required. Besides, requirements to all technological processes both from the point of view of quality and from the point of view of terms will become tougher. What earlier took us a month to do, now we shall do for three weeks. If earlier we had time for completion, operational development of projects - now we cannot afford this any more.’

"We have our special way"

‘At presentation of the largest grid facility constructed for the last 20 years - "Klyuchi" substation in the Shelekhovo area - you said that this project is not the last …’

‘Now we search for ways to start realization of the "North" project. It assumes electrification of the north of the Irkutsk area and is related to the task of association of power supply systems of the Irkutsk area and Yakutia. The "North" project can be divided into two stages conditionally. The first is directed to development of the potential of gas deposits of the north of the region and the southwest of Yakutia for construction of generating sources. Cost of its realization equals 7.85 billion rubles.

The second stage assumes gradual increase in capacity, and also voltage of generating sources from 220 kV up to 500 kV. That will allow to provide reliability and stability of operation of the northern power unit. Cost of the second stage is estimated equal to 22.78 billion rubles, and cost of the whole project amounts to 30.6 billion rubles. The project cannot be carried out only due to means of Irkutskenergo; Opportunities of reception of means for its realization from the investment fund of the Russian Federation are now studied.

But the longer we are engaged in this subject, the more we understand how much it is complicated. Its solution can take more time than it was supposed. Therefore, we are going to receive a part of means from other sources, in particular due to payment for connection of all large consumers, including from Irkutskenergo as a generating company. In any case, in the north of the Irkutsk area we shall close the most problematic sites irrespective of the fact whether we shall receive money from the investment fund or not.

The second great construction is Taishet Unit, where the large substation of 500/200 kV is being erected; it will be connected to the old substation. We plan to close the circuit of the unit to the scheme of delivery of capacity of Boguchansk Hydroelectric Power Station. "The Governor's Program" will be continued within the limits of which, in particular, on terms of co-financing, the Olkhon Island was electrified, as well as the bank of Baikal and some northern areas of the region. In 2007 we spent around 600 million rubles under the program; 300 million rubles of this sum was spent for low voltage, and 300 million rubles were spent for high voltage. I believe that this volume of financing will be kept in the further.’

‘The issue of the reform of the power industry is now especially acute for the company. What variants of reforming does Irkutskenergo consider now?’

'There are several variants. But the management of the company proposes the most simple one which does not contradict neither to the international experience, nor the Russian legislation. It is spin-off from Irkutskenergo of a new company independent of the power supply system, with which long-term contracts will be concluded in the future. We hope that in April-May coordination on the governmental level will take place, and the decision will be taken which will satisfy both the regional and federal authorities and the power company.’

‘Why do you consider the variant of spin-off of the grid company to be optimal?’

‘It can be realized in rather predicted and short terms. Some variants which are also examined, delay the reform for one and a half - two years. We propose to the minimum-term project which will correspond to all norms of the legislation and will allow to plan further development of Irkutskenergo.’

‘To what degree is this variant exclusive for the Russian power supply system?’

‘We have our own way to a certain degree, as Irkutskenergo is not included in the structure of RAO UES of Russia. The model chosen by RAO for the enterprises assumes division of all kinds of activity and their sale. However, as the international experience shows, the division sooner or later involves a return process - gathering of assets into a holding, or in affiliated structures. In fact, total division by kinds of activities is not good for the power sector. On the other hand, we cannot say that our variant is exclusive. This plan is supposed to be taken by other independent companies - "Tatenergo", "Bashkirenergo", "Novosibirskenergo". Like our company, they preferred this variant as the most effective and least painful. This way is effective both for us and the Irkutsk area.