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Alexander Simanovski tells reporters about the thermal power business strategy of the Bashkir Generation Company

Alexander Simanovski tells reporters about the thermal power business strategy of the Bashkir Generation Company
18 December 2014

The information agency Bashinform hosted a press conference of the BGC LLC CEO Alexander Simanovsky, timed to coincide with the upcoming Energy Workers’ Day. The head of the company described preliminary results of BGC in the expiring year and its plans for the coming year.

In 2014, the Bashkir Generation Company showed sustainable results. Indicators of electric power and heat output of BGC LLC remained at the level of the previous year.

“This year we were in the right position of evolutionary development, we faced no radical changes,” said Alexander Simanovsky. “In general, new capacities which are introduced in Russia and have modern equipment did not push us from the electricity and power market. This proves that the work of the company’s staff and management is moving in the right direction.”

One of the major topics of the press conference was devoted to heat supply and development of the regional thermal power market. Mr. Simanovsky told journalists that on December 5, 2014 the Board of Directors of BGC LLC adopted a thermal business strategy to ensure reliability and security. This strategic document is adopted by the company for the first time and is aimed at achieving leadership in thermal power in terms of reliability, security and operational efficiency.

In particular, the Bashkir Generation Company intends to reduce amount of worn-out grids from 40% to about 30% by 2020, as well as to reduce loss of thermal grids from current 12.7% to 9.7% due to modern materials and technologies. All this ultimately should have a positive impact on the quality of heat supply to consumers. Mr. Simanovsky noted that implementation of the major activities of the strategy aimed at reducing proportion of worn-out grids will be financed from the money received from the charged fees.

“All funds from fees received by Bashkir Generation Company or BashRTS will be invested in improvement of heat grid equipment and construction of new heat sources,” said the CEO of BGC LLC, speaking about investment of the Bashkir Generation Company into thermal power in general.

Alexander Simanovski also noted that BGC LLC is still focused on upgrading existing equipment and technical re-equipment of power plants. Among major investment projects of 2014 he emphasized reconstruction of Ufimskaya TPP-2 with replacement of a turbine generator No. 3, which exhausted its resource, with a steam turbine with Siemens SST-300 generator. The old equipment with capacity of 6 MW was replaced with a modern turbine of 14 MW. Technical re-equipment will lead to an increase of electric power of the plant, improvement of its technical and economic performance and growing reliability of the equipment. The main part of the project works has been completed this year, the technical start of the turbine is scheduled for the third decade of December.

In 2014 BGC LLC also carried out a reconstruction of the previously decommissioned gas piston unit by Jenbacher at the Zauralskaya TPP. This increased installed power generation capacity of the plant by 2.5 MW and heat capacity — by 2.2 Gcal/h.

At the meeting with media the company announced that in 2015 it will continue implementation of the set of measures to maintain reliability and cost-effectiveness of equipment at the power plants of Bashkir Generation Company. It should be emphasized that the main financial sources for all upgrades, renovations and overhauls are own investments of BGC LLC. Thus, the most of funds received from operating activities of the company remains in the region and is invested in the development of generation capacities.

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Bashkir Generation Company LLC (BGC LLC) is a major regional energy company in Russia and a member of Inter RAO Group coordinating the operation of Bashkir Heat Distribution System LLC (BashRTS LLC) and several subsidiaries. BGC LLC has 4,156 MW and 9,031 Gcal/h of installed power generation and heat production capacity. With an authorized capital of 24 billion rubles, BGC LLC is a fully owned subsidiary of JSC Inter RAO. www.bgkrb.ru

Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Company is the leading energy export and import operator in Russia actively increasing power generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and the leading Russian energy company by energy efficiency. Inter RAO Group owns and operates over 34.3 GW of installed power generation capacity. www.interrao.ru

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