Russia’s position in green energy underscores the country’s rich potential, although the scale of actual projects under way is still rather modest. The share of wind and solar power of Russia’s energy mix does not exceed 1%. At the same time, according to Deputy Prime Minister Alexander Novak at the International Financial Congress, Russia plans to increase the share of renewables in the energy balance by 10 times by 2040. Although calculations show that if the most ambitious plans are implemented, the share of renewables, without large hydro power plants, in Russia will reach only 2-2.5% by 2035. With the risk of foreign investors leaving the Russian energy sector (Enel Russia, Fortum, Unipro), the growth of renewables in the energy mix will slow down even more.
According to Rosstat, electricity generation reached 1,157 billion kWh in 2021. Thermal power plants were and still are the main supplier of electricity to the unified energy system of the country. Last year, the share of TPP generation was 62%. In 2016 it was 65%, and in 2011 it was 68%. HPPs produced 216 billion kWh of electricity in 2021. This is 19% of the country’s total electricity production. In 2016, the share of HPPs was 17%, and in 2011 it was 16%. The share of nuclear power generation increased from 16% in 2011 and 18% in 2016 to 19% in 2021. At the same time, in 2020, NPPs and HPPs – low-carbon energy sources – will each generate 20% of electricity. The Ministry of Energy noted during Russian Energy Week in 2021 that the share of nuclear power stations should increase to 24-25% by 2050, while the share of gas generation will remain at about the current level of just over 40%. At the same time, the share of coal-fired generation will gradually decline, reaching 4.5% of generation by 2050, with 22.2 GW of coal-fired TPP equipment to be decommissioned. Solar and wind power generation will increase from around 4.5% by 2035 and further to 12-12.5% by 2050-2060. As a result, the share of carbon-free and low-carbon generation, which is 41% today, will be around 47% by 2035 and 56.5% by 2050. Of this, 19% will come from hydroelectricity, 25% from nuclear power and 12.5% from renewables. Evgeny Gasho, expert consultant at the Analytical Centre under the Government of the Russian Federation, said the following: “Few countries can boast the energy mix that Russia has now. The share of low-carbon hydro and nuclear power in total electricity generation is over 40 per cent and a further 20 per cent in combined cycle power generation in thermal power plants. Russia’s specific carbon intensity is the lowest in the world, Denmark is slightly behind us, but the carbon intensity of other developed countries and global averages are not even comparable to ours.”
Energy sector readiness for the energy transition is determined not only by green or low-carbon kilowatts and the level of localisation of green technologies, but also by the level of energy efficiency of traditional energy subsectors, their technological sophistication and adaptability. Most enterprises in the sector have a technologically low share of electricity and heat consumption from external sources, as well as a low share of motor fuel consumption. This is a sector specific feature of energy utilities in the energy transition readiness ranking. On the other hand, in terms of energy efficiency dynamics, automation and adaptability, the enterprises are well placed in the ranking. Recall that these include holdings from outside the main ranking (hyperlink), subholdings and enterprises, which can be categorised in the table using a filter.
The energy transition
Position
Position
Name
Efficiency over 15 years
Importance of external infrastructure
Share of motor fuel
Energy revenue
Automation (benchmark)
Dynamics of Automation
Adaptability
–
Saratovskaia TPP
–
Novomoskovskaya TPP
–
Shaturskaya TPP
–
Samara TPP
–
Neryungri TPP
–
Sredneuralskaya TPP
–
Berezovskaya TPP
–
Gusinoozerskaya TPP
–
Cherepetskaya TPP
–
Yakutsk State District Power Plant
–
South Kuzbass TPP
–
Zainsk State District Power Plant
–
Nevinnomysskaya TPP
–
Konakovskaya TPP
–
Urengoy TPP
–
Pskovskaya TPP
–
Sakhalin TPP
–
TPP-3 by Klasson
–
Yakutia TPP-2
–
Serovskaya TPP
–
Smolensk TPP
–
Nizhnevartovsk TPP
–
Yaivinskaya TPP
–
Kashirskaya TPP
–
Troitskaya TPP
–
Kharanorskaya TPP
–
Surgutskaya TPP-1
–
Kirishskaya TPP
–
Belovskaya TPP
–
Yuzhnouralskaya TPP
–
Yoshkar-Ola thermal power plant No. 1
–
CHPP-3 Ivanovo
–
Magadan CHPP
–
Penza CHPP-1
–
CHPP-2 Ivanovo
–
Bereznikovskaya CHPP-2
–
Sormovskaya CHPP
–
Ulyanovsk CHPP – 2
–
Marikommunenergo
–
Chukotenergo
–
Vladimirsky
–
Kirovskaya CHPP-5
–
Syzran CHPP
–
Yakutsk combined heat and power plant
–
Mordovian
–
Norilskenergo
–
Boiler Arbekovo
–
Ivanovsky
–
CHPP Volga Automobile Plant
–
Novokuibyshevskaya CHPP-1
–
Perm CHPP-6
–
Balakovskaya CHPP-4
–
Saratov CHPP-5
–
Orenburg
–
Izhevsk CHPP-1
–
Mordovian
–
Murmansk CHPP
–
Generation of Buryatia
–
Ulyanovsk CHPP-1
–
Efremovskaya CHPP
–
Zagorskaya HPP
–
Votkinskaya HPP
–
Svetlinskaya HPP
–
Sayano-Shushenskaya HPP
–
Kamskaya HPP
–
Zeyskaya HPP
–
Volzhskaya HPP
–
Nizhny Novgorod HPP
–
Vilyuisky Cascade HPP
–
Cascade of the Kuban HPP
–
Cheboksary HPP
–
Sunsky Cascade HPP
–
Kolyma HPP
–
Nizhnekamsk HPP
–
Narva HPP (HPP-13)
–
Ladoga Cascade HPP
–
Volkhovskaya HPP №6 (HPP-6)
–
Ust-Srednekanskaya HPP
–
Dagestan
–
Vuoksa HPP Cascade (Cascade-1)
–
Saratov HPP
–
Kemsky Cascade HPP
–
Volga Cascade HPP
–
Tuloma Cascade HPP
–
Bureyskaya HPP
–
Vygsky Cascade HPP
–
Nivsky Cascade HPP
–
Zhigulevskaya HPP
–
Paz Cascade HPP
–
Novosibirsk HPP
–
Bilibino Nuclear Power Plant
–
Balakovo nuclear power plant
–
Beloyarsk nuclear power plant
–
Kursk nuclear power plant
–
Leningrad nuclear power plant
–
Kalinin nuclear power plant
–
Smolensk nuclear power plant
–
Rostov nuclear power plant
–
Novovoronezh nuclear power plant
–
Kola nuclear power plant
–
Gorelektroset
–
Municipal unitary enterprise of the city of Cherepovets “Electroset”
–
Pyatigorsk electrical networks
–
Tyvaenergo
–
SUE Stavropolkommunelectro
–
South Yakutsk Electric Networks
–
Karelenergo
–
Electrical networks of the Jewish Autonomous Region
–
Novgorodobleelectro
–
Rosseti North Caucasus
–
Oblkommunenergo
–
Tomsk Distribution Company
–
Orenburgkommunelektroset
–
Khabarovsk electrical networks
–
Bashkir network company
–
Buryatenergo
–
Amur Electric Networks
–
Altaienergo
–
Tula City Electric Networks
–
Primorsky electric networks
–
Khabarovsk city power grid
–
Novgorod
–
Smolenskenergo
–
Bryanskenergo
–
Bashkir distribution electrical networks
–
Krymenergo
–
Circassian city electrical networks
–
Energy Technology
–
Ivenergo
–
State Unitary Enterprise of the Moscow Region Power Grid
–
Municipal Unitary Enterprise of the City of Khabarovsk Heating networks
–
Petrozavodsk utility systems
–
Vilyui branch Teploenergoservis
–
TomskRTS
–
Housing and communal services of the Chekhov region
–
Aldan branch Teploenergoservis
–
Teploenergoservis
–
Heating network
–
MUP of the Moscow Region Energetik
–
Ural Heat Network Company
–
Usinsk thermal company
–
Municipal unitary enterprise of Domodedovo city district Teploset
–
Ulyanovsk Municipal Unitary Enterprise City Heating Network
–
Bashkir distribution heating networks
–
Yugansktransteploservis
–
Pskov heating networks
–
Krasnoyarsk Heat and Power Company
–
Regiongaz-invest
–
Sevteploenergo
–
Almetyevsk heating networks
–
Orenburg heating networks
–
MUMP public utilities
–
Energoneft Tomsk
–
Ivgorteploenergo
–
Chita Energy Complex
–
Smolenskteploset
–
Astrakhan heating networks
–
Engineering networks of the city of Dolgoprudny
–
Surgut municipal unitary enterprise
–
Smolenskteploset
–
Tambov power supply company
–
Chuvash Energy Retail Company
–
Krasnoyarskenergosbyt
–
Saratovenergo
–
Mosenergosbyt
–
Dagestan Energy Retail Company
–
KMA-Energosbyt
–
Kuzbass Energy Sales Company
–
Energosbyt Sakhalinenergo
TPP
Saratov TPP looks the most ready for the energy transition. For example, a new block-type gas distribution station was commissioned in 2020. The project has improved the energy efficiency of the power plant. The energy facility is fitted with modern equipment and the latest remote control, monitoring and protection systems, which significantly increases the reliability and safety of the existing gas distribution system. The facility is also provided with an upgraded fire safety system and systems for controlling the safe operation of gas equipment. In addition to Saratov TPP, the top three in the category were Novomoskovskaya TPP and Shaturskaya TPP-5. Both plants operated more efficiently than their sub-sector counterparts, using less energy to produce the same amount of electricity. By the end of 2019, Novomoskovskaya TPP even became the leader in terms of electricity generation among all of Quadra’s production units.
CHPP
MUP Yoshkar-Ola CHPP-1 looks the most ready for the energy transition. In 2020, the company completed a large-scale reconstruction of the Gorodskaya substation; its capacity increased from 55 to 80 MVA. Now it is the most modern digital substation in the republic with a capacity reserve and the prospect of increased productive supply of electricity for further development of the regional capital. In addition, Yoshkar-Ola CHPP-1 is an active participant in national projects. In 2020, it overhauled the sections of heating networks that fell under the roadway under the “Safe and Quality Roads” national project, which reduced the number of accidents and losses. CHPP-3 of Ivanovo branch of PJSC T Plus and Magadanenergo branch of Magadanskaya CHPP were also in the top three in the CHPP category. In 2020, power engineers even identified a defect in the generating equipment of Ivanovo CHPP-3, and part of the heat load had to be switched to Ivanovo CHPP-2. But the last year for Ivanovo CHPP was rich in renovations and repairs: from installing a new trunk pipeline to dismantling the cooling tower, which was necessary to optimize the capacity of Ivanovo branch of T Plus. By the end of last year, an extended overhaul with super-typical works was completed at the boiler of TPP-3, which reduced the probability of abnormal situations during the heating season. From fourth to eighth place of the T Plus branches: Penzenskaya CHPP-1, CHPP-2 of Ivanovo branch, Bereznikovskaya CHPP-2 of Perm branch, Sormovskaya CHPP of Nizhny Novgorod branch and Ulyanovskaya CHPP-2 of Ulyanovsk branch. The last one is worth mentioning separately, because since 2020 Ulyanovsk has moved to the price zone for heat supply using the “alternative boiler house” method. In the price zone, 16 municipal UHSOs (unified heat supply organization) will be responsible for reliable and high-quality supply of the resource to consumers. This is done to continue the recovery of the city’s heat supply systems in large volumes. By 2029, 26 km of heat distribution networks of Teplocom and about 88 km of networks of Municipal Heating Service Company are to be renewed. Also, in the next few years, power engineers expect to switch to a closed DHW scheme and reconstruct 15 boiler plants of UMUP Municipal Heating Network.
HPP
Hydropower plants are a recognised source of low-carbon energy. Although hydropower plants do not directly produce emissions, they do have a tangible environmental effect on the rivers and the areas in which they are located. Mainly through the destruction of the natural hydrological regime, reproduction conditions and migration of aquatic organisms. At the same time, the plants themselves are ready for the energy transition to varying degrees. In the sub-sector, RusHydro’s plants are the leaders: the Zagorskaya HPP located on the Kunya River in the Moscow Region, the Votkinskaya HPP in the Perm Territory and the Karachaevo-Cherkessky branch of RusHydro. This is logical, given that the company owns almost all of Russia’s hydro facilities. Zagorskaya HPP differs from other hydroelectric power plants in technology of power generation, so it is not quite correct to compare it with other HPPs. It was built as a partial solution to the problem of a shortage of manoeuvring regulating capacity in the centre of European Russia. The pumped storage power plant is understandably characterised by an extremely high share of external power consumption, but it also has one of the weakest automation dynamics, which could be due to the peculiarities of its operation. Zagorskaya HPP is used to equalise the daily non-uniformity of the load schedule. At night, when demand is low, the pumped storage power plant pumps water into the upstream section of the reservoir, procuring cheap electricity. In the morning and evening, when electricity consumption peaks, the power plant discharges water from the upstream pool to the downstream pool, generates electricity and sells it at a higher price. The Votkinsk HPP, while relatively well rated, has relatively high margins due to the high water content of the Kama, but at the same time the energy efficiency of the HPP is declining.
NPP
NPPs are characterised by high margins relative to other energy enterprises, which is not surprising, since NPPs produce the cheapest energy, if the cost of capital construction of the plants is not taken into account. Bilibino NPP, Balakovo NPP and Beloyarsk NPP (part of Concern Rosenergoatom) are among the top three NPPs in terms of readiness for the energy transition. Unlike their sub-industry counterparts, these NPPs operated with greater efficiency, using less of their own energy to produce holiday energy. At the same time, each has its own weak link. For example, the energy efficiency of Bilibino NPP has been declining in recent years, Balakovo NPP is characterized by low rates of production automation and low adaptability to green technologies, and Beloyarsk NPP shows both lower energy efficiency and low adaptability. At Kursk NPP (fourth place), 27 measures to improve the safety and efficiency of electricity generation have been successfully completed. By the end of 2021, the plant had generated more than 25 billion kWh of electricity against a target of 22.8 billion kWh. This is 1.4 billion kWh more than the target level set by Rosenergoatom. And Leningradskaya NPP (fifth place) has been steadily increasing its share in the regional power system in recent years, increasing from 53.88% in 2017 to today’s 60-62%, helped both by record-breaking installed capacity utilisation rates (ICUF) at RBMK units and by the commissioning of VVER-1200 power units.
Power Grids
Grid companies, unlike all generators in the energy segment, have a high rate of energy use from external sources. This is their industry specificity. The companies in the top ten differ from the rest of the grid companies by their higher margins and flexibility. The leaders of the list are Gorelectroset JSC, Altaikrayenergo JSC and Cherepovets MUP Electroset JSC. But, unlike Gorelectroset and Altaikraienergo, Cherepovets MUE is significantly behind in the level of automation. In addition, in recent years, the rate of automation of the enterprise has not increased. In fact, this problem is observed in the following companies ranked 4-10: Pyatigorsk Power Grids, Tyvaenergo, VarieganEnergoNeft, GUP SK Stavropolkommunelektro, YuYAES branch of DRSK, Volgogradoblektro PJSC and Karelenergo of IDGC of North-West PJSC.
Heating networks
Khabarovsk Municipal Unitary Enterprise “Heating networks” is the leader in the ranking of the heating networks sub-sector. PKS-Teplovye Seti and the Vilyui branch of Teploenergoservis are ranked second and third. They share high margins, but their energy efficiency is declining, the level of automation has not been upgraded for a long time, and their adaptability potential is weak.
Teploenergoservis
Khabarovsk Municipal Unitary Enterprise “Heating networks” is the leader in the ranking of the heating networks sub-sector. PKS-Teplovye Seti and the Vilyui branch of Teploenergoservis are ranked second and third. They share high margins, but their energy efficiency is declining, the level of automation has not been upgraded for a long time, and their adaptability potential is weak.
Features of energy in the energy transition
The energy transition in Russia has a number of specific attributes shaped by industry development, geography, climate and economic factors. This is confirmed by Evgeny Gasho, an expert consultant at the Russian Government Analytical Centre. “We need more energy for the energy transition. We consume less than we should, given our climate – about 7-8 tonnes per person, when Canada consumes 16 tonnes. At the same time, it is important to increase the consumption of clean energy in the combined cycle and the share of electric energy. At the moment the energy balance is tilted towards heat, because we are a cold country. The energy sector in Russia shows strong potential. “Few countries can boast the energy mix that Russia has now. More than 40 per cent of its electricity comes from low-carbon hydroelectric and nuclear power stations and a further 20 per cent is produced by combined cycle power stations. Russia’s specific carbon intensity is the lowest in the world, Denmark is a bit behind, but the carbon intensity of other developed countries and the world average is not even comparable with ours,” Gasho said. The development of nuclear energy with an increased share of hydro and nuclear power plants will play a special role in equalising the balance. Modernisation of the latter will play an important role in the energy transition. “Nuclear power has a special branch – high-temperature gas-cooled reactors. They can be used to produce hydrogen, recover iron, and work with energy-intensive chemicals. And not a single kilogram of fuel would be burned. With the right efforts, such reactors can take 10% in the energy mix of the generation, and this is the energy that will go to energy-intensive industries,” Eugene Gasho explains. The turbine-free nuclear power plant technology with helium-fueled cooling of the fuel rods is undergoing an engineering phase. Their implementation in the medium term will make it possible to create both powerful and environmentally friendly nuclear power plants. Gas and coal-fired thermal power plants could also be included in the energy transition process. The first scenario is the transformation of CHP plants into combined heat and power plants, which would save the plant up to a third of its fuel. The second is the installation of electrostatic precipitators to reduce the amount of dust emitted. A technological solution is available, but production capacity does not allow for scalable upgrades: domestic plants need to ramp up production to several hundred filters per year.