Veronica Rostova
The activities of Italian energy giant Enel in Russia is one of the most successful examples of entry of foreign capital into the Russian energy industry. The company was the first among international corporations, even before the start of liberalization of the industry, to begin working in the Russian power sector, taking under control the North-West TPP in Saint Petersburg. Enel was the first to purchase the stake in a generation facility spinning off from RAO UES during the energy sector reform. In July 2011 with the launch of two new, modern CCGTs Enel became the first to complete the investment commitments made during the acquisition of OGK-5. In short, it is the pioneer of the Russian electricity market.
Today, Enel Group is successfully operating in Russia, developing a vertically integrated business in the Russian energy market. The company is active in the gas sector, as well as in the generation and electricity sales. In 2010 the revenue of “Enel OGK-5” reached 52,561 million rubles, net profit stood at 3,695 million rubles, and in the first half of 2011 the net profit totaled 2,275 million rubles.
The promising Russian market has always attracted the largest energy companies in the world, as Russia accounts for almost one seventh of the total primary energy production in the world, in terms of energy consumption the country is ranked fourth.
Enel first entered the Russian market seven years ago, when it took charge of the North-West TPP, together with its partner – a private Russian group called “ESN Energo”. Thus, Enel became the first foreign company to receive access to the management of the Russian power industry facility. Within three years of the supervision contract (2004-2007) the company was in charge of the completion of the second CCGT (combined cycle gas turbine) with a capacity of 450 MW. As the result, the company managed to double the capacity of the power plant and bring it to 900 MW, as well as to significantly improve its technical, economic and environmental performance. The North-West TPP was the first in Russia to become environmentally certified, while Enel had the opportunity to show new standards of business administration in Russia.
Upon the completion of this project, Enel began to expand its activities on the Russian territory further. In 2006 it acquired 49.5% stake in Russia’s largest independent electricity supplier “Rusenergosbyt”. In 2007, together with Eni Enel, we strategically bought shares in the gas development company SeverEnergia. The most important step in the expansion strategy of Enel Group in Russia was the acquisition of OGK-5, and currently OJSC “Enel OGK-5”, is one of the largest producers of electricity in Russia. “Enel OGK-5” is a dynamically developing company, which includes four large power plants located in rapidly developing regions of Russia: Reftinskaya and Sredneuralskaya GRES in the Urals, Nevinnomysskaya GRES in the North Caucasus and Konakovskaya GRES in Central Russia.
The summer of 2011 became a landmark for “Enel OGK-5”, as the company introduced 820 MW of new capacity in Russia, thus becoming the first generation company to completely fulfill its investment obligations in Russia.
On July, 15 the company launched the new combined-cycle gas turbines (CCGT) unit with installed capacity of 410 MW at Nevinnomysskaya GRES in Stavropol region. The inauguration ceremony was attended by Deputy Prime Minister Igor Sechin, Head of the International Division of Enel Carlo Tamburi, Head of Engineering and Innovation Division of Enel Livio Vido and Enel OGK-5 CEO Enrico Viale.
The construction of 410 MW CCGT at Nevinnomysskaya GRES is the only project of this kind and scale implemented in the region. The launch of the new CCGT not only helped increase the installed capacity of the plant, but also the reliability of the North Caucasus power system in general. The project also acquires particular importance in view of the forthcoming XXII Olympic Winter Games in Sochi, since the launch of new generating capacity will contribute to increasing safety and reliability of power supply of the sports and infrastructure facilities.
10 days after, on July 25, 2011, Enel launched the second combined-cycle gas turbines unit with the capacity of 410 MW at Sredneuralskaya GRES in the Urals. The new unit was inaugurated in teleconference by Prime Minister of Russia Vladimir Putin, Deputy Russian Energy Minister Andrei Shishkin and Head of International Division of Enel Carlo Tamburi.
With the commissioning of a second new power unit Enel became the first generating company to fulfill its commitments in Russia in terms of building new capacity. According to Carlo Tamburi, “Enel is proud that with the launch of new power units the company has not only increased the installed capacity and production performance of its power plants in Russia, but also has contributed to the development of the Russian energy system”.
The new generation units are among the most technologically advanced in the whole territory of the Russian Federation. They are constructed on the base of fourth generation technology and equipment, that helps increase electricity production and reduce environmental impact. The efficiency of new CCGTs is about 58%, while the average efficiency rate of conventional gas turbine power units is 35-40%.
CCGTs also help cut fuel consumption, reduce capital investment and maintenance and repairs costs. The combined-cycle power unit consumes one third less cooling water than a conventional plant, owing to this fact the production costs are reduced. In addition to good efficiency CCGTs also meet stringent environmental requirements, as they permit the reduction by twice the level of nitrogen oxide emissions.
Thus, the launch of new units will meet the continuously growing demand for electricity in key industrial regions of Russia – the Urals and the Caucasus, and at the same time will ensure the sustainable use of natural resources and help protect the environment.The total investment in the construction of two new power plants amounts to 800 million euros.
However, having completed the construction of new power units, we do not intend to stop at what has been accomplished.
The modernization of the existing facilities is also one of the priorities for Enel. And it primarily refers to long-term investment programs for the rehabilitation of the existing plants. The need to modernize the energy infrastructure in Russia is very evident. It is no secret that many of the production capacities are quite aged: for example, Sredneuralskaya GRES has recently celebrated its 75th anniversary and Reftinskaya GRES – its 40th anniversary.
In December 2010 “Enel OGK-5” started the modernization of Reftinskaya GRES – the largest coal-fired power plant in Russia. The project on the revamping the plant began with a full-scale reconstruction of 300 MW power unit N5. In a way, this is a unique project: following the modernization, the installed capacity of the unit will increase by 25 MW and its efficiency rate by approximately 3%. But the reconstruction is not limited only to technical performance improvement. An equally important objective is to reduce the environmental impact. In this regard, in July 2011 “Enel OGK-5” and the Government of Sverdlovsk Region signed an Agreement on cooperation in the field of environmental protection, which envisages the implementation of medium- and long-term environmental programs at Reftinskaya GRES. One of the key aspects of the program is the reconstruction of the dry ash removal system and installation of bag filters which will reduce the concentration of ash emissions into the atmosphere by nearly 95%.
Upon the completion of the reconstruction of power unit N5 at Reftinskaya GRES, the company plans to modernize gradually the entire plant. Every two years “Enel OGK-5” is going to carry out the reconstruction of one of the units of the plant. The program provides for the modernization of all 300 MW units of the power plant, including replacement of main and auxiliary equipment with new, more efficient ones that meets modern environmental standards. In particular, it is planned to install bag filters on all power units, which is testifying the company’s commitment to environment.
And last but not least an important aspect for “Enel OGK-5” is investing in strengthening the overall efficiency and optimization processes of its plants. Rich international experience and proven technologies help achieve operational excellence, improve safety and obtain environmental compliance.
