Annual Report 2013

Grid Connection

IDGC of Centre connects new consumers to electrical grids in 11 regions of the Central Russia. In this context, we provide services to both residential and legal consumers that wish to connect their newly commissioned or previously connected power installations, with an increase of their maximum capacity, to the Company’s grids.

Grid connection is carried out as well in the cases of changes in the category of power supply reliability or points of delivery of the power installations connected earlier and in the cases of alteration of such installations’ type of operation not leading to a revision of the maximum capacity but changing their external power supply circuit. Grid connection is made using a temporary or an ongoing power supply scheme.

This type of operation is regulated by the state through the Rules of Grid Connection for Power Installations of such groups of customers as Electrical Energy Consumers, Electrical Energy Production Facilities and Electrical Grid Facilities Belonging to Grid Companies, alongside with Other Entities; besides, the state sets the amount of payment for electrical grid connection.

The process of grid connection consists of several procedures, the timeframes of which are regulated by the current laws of the Russian Federation and by the internal regulations of the Company.

THE PROCEDURE OF CONSUMER GRID CONNECTION:

Grid connection volumes of a grid company depend on the current status and development plans of the economy in the regions where the Company’s branches are located. IDGC of Centre received around 63 thous. requests in 2013 for the connection of power installations to its power grids, which was a slight drop of 0.9% vs. 2012.

IDGC of Centre signed over 51 thous. contracts for grid connection based on those requests in 2013. This indicator dropped by 3% vs. the previous year, which resulted from the reduction in the number of applications from the potential consumers.

NUMBER OF REQUESTS FOR GRID CONNECTIONS IN 2011-2013,
thous. requests:

NUMBER OF CONTRACTS SIGNED FOR GRID CONNECTIONS IN 2011-2013,
thous. requests:

When signing the grid connection contract, the applicant may choose the way of payment for the grid connection on his/her own. Around 94% of all contracts in 2013 were signed with the consumers entitled to benefits, the cost of services for each of them amounting to 550 RUB in accordance with the Russian Federation laws. The rest of the applicant categories chose the following payment options:

GRID CONNECTION PAYMENT OPTIONS RATIO FOR APPLICANTS IN 2013, %:

The Company implemented over 43 thous. contracts signed for grid connections in 2013, the number exceeding the 2012 figures by 18.8%. The total amount of connected capacity in 2013 was 1,018.5 MW.

NUMBER OF IMPLEMENTED CONTRACTS FOR GRID CONNECTIONS SIGNED IN 2011-2013, thous. contracts:

CONNECTED CAPACITY IN 2011-2013, MW:


1,018.5 MW

Total connected capacity in 2013

43 thous. contracts

Number of implemented contracts in 2013

A 19.3% increase in connected capacity vs. 2012 is stipulated by the connection of major facilities with a high maximum capacity in 2013. The following major consumers were connected to the grid in the reporting year:

  • Department of Architecture and Construction Policy of the Voronezh Region with a total capacity of 34 MW;
  • LLC GOELRO with a capacity of 10 MW;
  • JSC Vympel-Communications with a capacity of 9.6 MW;
  • LLC Tambov Bacon with a capacity of 9 MW;
  • B.A. Nesterov Individual Entrepreneur with a capacity of 9 MW;
  • LLC Lipetsk City Power Company with a capacity of 7 MW;
  • LLC Armax-Group with a capacity of 6.1 MW.

STRUCTURE OF CONNECTED CAPACITY IN 2013 BY APPLICANT, MW and %:

39.8% of all the contracts signed for grid connections in 2013 were the contracts with consumers entitled to benefits with a capacity of up to 15 kW, and 28.0% were the contracts concluded with major applicants with a capacity starting from 670 kW.

The revenues of IDGC of Centre from rendering the services of connecting power installations to the electrical grids in 2013 dropped to 0.9 bln RUB. A 25% reduction in Company revenues vs. the previous period is associated with postponing the terms of grid connection for a number of major projects.

The financial result from these operations demonstrates similar dynamics – it dropped by 28.6% and amounted to 0.5 bln RUB.

FINANCIAL RESULT OF GRID CONNECTION SERVICES IN 2011-2013, bln RUB and %:

Indicator 2011 2012 2013 Change
2013/2012, %
Revenue on grid connection 1.7 1.2 0.9 –25.0
Net profit on grid connection* 1.2 0.7 0.5 –28.6