Investment policy

The investment program of IDGC of Urals for 2013 is approved by the Board of Directors (protocol # 130 dd. 28.08.2013). Cost and physical parameters of 2013 investment activities are disclosed in the table.

  2013
Capital expenditures Fixed assets commissioned FinancingCapacity commission
RUR mln,
excl. VAT
RUR mln,
excl. VAT
RUR mln,
incl. VAT
MVAkm
Sverdlovenergo 3 503 3 582 4 000 308 783
Permenergo 3 436 3 484 3 821 168 598
Chelyabenergo 2 130 2 000 2 251 167 473
HQ 11 11 16 0 0
Total 9 079 9 078 10 087 644 1 854

Capital expenditures in 2011-2013 are displayed on the chart. In comparison to previous years capital expenditures were increased in 2013. The increase totaled +42% on 2011 and +29% on 2012. The prerequisites for investment growth were:

  • A considerable growth of connection applications;
  • A need for the implementation of grid update strategy to increase reliability of grids and decrease depreciation of fixed assets;
  • Construction of facilities enabling power output from generating companies.

Capex of IDGC of Urals

In 2013 the capital expenditures totaled RUR 9 079 mln (2013 target figures – RUR 8 281 mln.). Financing totaled RUR 10 087 mln. (target figures – RUR 9 498 mln.). Commissioning of facilities in money terms totaled RUR 9 078 mln. (target figures – RUR 8 754 mln.). In physical terms commissioning totaled 644 MVA and 1 854 km (target figures - 440 MVA and 1 407 km or 146% and 132%). Directions of investments are:

  • upgrade and reconstruction of facilities (including connection): 2013 target figures totaled RUR 3 623 mln., actual figures totaled RUR 3 626 mln.;
  • new construction and enhancement of existing facilities (including connection) target capex figures totaled RUR 4 460 mln., actual figures totaled RUR 5 287 mln.;
  • other facilities stipulated in the investment program (including acquisition of facilities) - target capex totaled RUR 198 mln., actual figures totaled RUR 165 mln.

Key reasons for exceeding target figures in physical and money terms by all branches were fulfilling of obligations on newly-concluded connection contracts. Target figures of capex on connection totaled RUR 2 718 mln. in money terms, facilities commissioning reaching 671 km and 184 MVA in physical terms. Actual figures totaled RUR 3 491 mln. in money terms, commissioning reaching 1 158 km and 298 MVA. Besides, under projects regarding construction and reconstruction of important facilities Sverdlovenergo branch commissioned 143 MVA on reconstructed 110 kV Ferrosplav substation, planned for commissioning in 2014, ahead of schedule.

In 2013 we constructed and commissioned the following largest facilities:

Permenergo

Construction of 110/10/6 kV Zaostrovka substation with a 110/10/6 kV line
Goal: facilitation of additional output from CHPP-9, strengthening of links between Perm and Zakamye load nodes, increased reliability of supply of existing consumers and connection of new consumers.
Project duration: 2012 -2013. Commissioned in physical terms: 50 MVA and 11.2 km. Commissioned in money terms: RUR 1 554.5 mln.

Sverdlovenergo

Construction of 110/10 kV Rassokha substation
Goal: construction of required capacity to satisfy demands in residential construction in the Beloyarskyi district (Kosulino village).
Project duration: 2012 -2013. Commissioned in physical terms: 32 MVA. Commissioned in money terms: RUR 229 mln.

In 2013 we commenced the construction of the following largest facilities:

Permenergo

Construction of 110/10 kV Kochkino substation
Goal: energy supply of settlements in the Perm district that are serviced by Perm Urban Grids.
Project duration: 2014 -2015. Target capacity to be commissioned: 32 MVA, 4 km. Target deadline: December 2015.

Reconstruction of 110/35/6 kV Chusovaya substation
Goal: energy supply of Perm.
Project duration: 2013 - 2016. Target capacity to be commissioned: 80 MVA. Target deadline: December 2016.

Reconstruction of 110 kV Ferrosplav substation
Goal: Increased reliability and quality of energy supply of Serov Ferro-Alloy Plant.
Project duration: 2011 – 2014. Target capacity to be commissioned: 143 MVA. Commissioned in 2013 in money terms: RUR 355 mln. Target deadline: December 2014.

Reconstruction of 110/35/10 kV Serov substation
Goal: Increased reliability and quality of energy supply of Serov and local industrial enterprises.
Project duration: 2010 – 2014. Commissioned in 2013 in money terms: RUR 29 mln. Target deadline: December 2014.

Chelyabenergo

Reconstruction of 110/10 kV Pervomayskaya substation
Goal: Connection of a small-scale generating facility (Asbestotsement CHPP) to ensure output to 6-10 kV networks.
Project duration: 2011-2014. Target deadline: 2014.

Construction of 110 kV ChGRES – Massivnaya cable line and reconstruction of Massivnaya substation
Goal: construction of an alternative power supply source for main substations in Sosnovsky load node via construction of a 110 kV cable line (Chelyabinsk).
Project duration: 2012 -2020. Target deadline: 2020.

Distribution of capex in the 2011-2018 investment program is shown in the table below.

Enlarge

RUR mln 2011
actual
2012
actual
2013
actual
2014
target
2015
target
2016
target
2017
target
2018
target
Total 6 412 7 037 9 079 4 832 5 068 4 962 5 181 5 411
Largest facilities, including 1 297 1 929 532 503 539 175
Reconstruction and update 2 363 220 331 539
New construction 1 295 1 566 312 172 175
Facilities of primary concern 33 46 331 82
Reconstruction and update 27
New construction 5 46 331 82
Regular facilities, including 2 306 1 688 1 516 737 834 902 1 117 1 598
Reconstruction and update 1 393 1 387 1 080 734 828 901 924 1 597
New construction 913 301 436 3 6 1 193 1
Connection, including: 1 122 1 912 3 492 2 781 2 861 2 204 2 203 2 141
- Facilities with capacity over 750 kW (high voltage, medium voltage 1); 940 682 568 286 280 314
- Facilities with capacity 100-750 kW (medium voltage 2); 688 954 546 459 592 521 508 539
- Facilities with capacity 15-100 kW; 43 136 276 295 293 238 246 311
- Facilities with capacity below 15 kW; 351 822 1 459 1 345 1 407 1 159 1 170 977
- Generation. 40 271
Distributive grids 562 603 502 103 320 365 431 529
Reconstruction and update 338 469 291 89 271 210 257 450
New construction 224 134 210 14 48 155 174 78
IT 63 21 8 13
Process management automation (except automated utility metering systems) 512 237 288 143 68 97 202 126
Metering and control devices 521 477 293 240 130 148 324 351
Safety programs 27 96 67 27 38 45 35 66
Acquisition of grid assets, land plots, etc. 217 269 166 30 30 156 194
Other programs and measures 1 145 457 765 216 238 300 447 392
RUR mln 2011
actual
2012
actual
2013
actual
2014
target
2015
target
2016
target
2017
target
2018
target
Total 6 412 7 037 9 079 4 832 5 068 4 962 5 181 5 411
Largest facilities, including 1 297 1 929 532 503 539 175
Reconstruction and update 2 363 220 331 539
New construction 1 295 1 566 312 172 175
Facilities of primary concern 33 46 331 82
Reconstruction and update 27
New construction 5 46 331 82
Regular facilities, including 2 306 1 688 1 516 737 834 902 1 117 1 598
Reconstruction and update 1 393 1 387 1 080 734 828 901 924 1 597
New construction 913 301 436 3 6 1 193 1
Connection, including: 1 122 1 912 3 492 2 781 2 861 2 204 2 203 2 141
- Facilities with capacity over 750 kW (high voltage, medium voltage 1); 940 682 568 286 280 314
- Facilities with capacity 100-750 kW (medium voltage 2); 688 954 546 459 592 521 508 539
- Facilities with capacity 15-100 kW; 43 136 276 295 293 238 246 311
- Facilities with capacity below 15 kW; 351 822 1 459 1 345 1 407 1 159 1 170 977
- Generation. 40 271
Distributive grids 562 603 502 103 320 365 431 529
Reconstruction and update 338 469 291 89 271 210 257 450
New construction 224 134 210 14 48 155 174 78
IT 63 21 8 13
Process management automation (except automated utility metering systems) 512 237 288 143 68 97 202 126
Metering and control devices 521 477 293 240 130 148 324 351
Safety programs 27 96 67 27 38 45 35 66
Acquisition of grid assets, land plots, etc. 217 269 166 30 30 156 194
Other programs and measures 1 145 457 765 216 238 300 447 392

Taking into account expectable tariff growth and last-mile problem our investment program for 2014-2018 is sequestered by approx. 40% on 2013. The chart demonstrates the structure of capital expenditures of the Company in 2013. The key sum was spent on new construction and grid infrastructure development (mainly, construction of 110/10/6 kV Zaostrovka substation to ensure the output from CHPP-9).

2013 Capex Structure, %

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Under our 2013 investment program we constructed large and important facilities ensuring the output from generating companies as well as facilities ensuring the development of social, residential, public utilities and industrial infrastructure.

Under our 2013 investment program we constructed large and important facilities ensuring the output from generating companies as well as facilities ensuring the development of social, residential, public utilities and industrial infrastructure.

Long-term investment program of the Company

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RUR mln MU 2011 2012 2013 2014 2015 2016 2017 2018
Capital expenditures RUR mln., excl. VAT 6 412 7 037 9 079 4 832 5 068 4 962 5 181 5 411
Financing RUR mln., excl. VAT 7 038 7 898 10 087 5 550 5 922 5 873 6 157 6 333
Fixed asset commissioning RUR mln., excl. VAT 6 484 6 863 9 078 4 873 5 416 5 127 5 481 5 671
Capacity commissioned km 1 169 1 242 1 854 729 783 639 1 189 1 487
MVA 424 621 644 375 210 345 195206
RUR mln MU 2011 2012 2013 2014 2015 2016 2017 2018
Capital expenditures RUR mln., excl. VAT 6 412 7 037 9 079 4 832 5 068 4 962 5 181 5 411
Financing RUR mln., excl. VAT 7 038 7 898 10 087 5 550 5 922 5 873 6 157 6 333
Fixed asset commissioning RUR mln., excl. VAT 6 484 6 863 9 078 4 873 5 416 5 127 5 481 5 671
Capacity commissioned km 1 169 1 242 1 854 729 783 639 1 189 1 487
MVA 424 621 644 375 210 345 195206

Capital investments of the Company for 2011-2018