Efficient use of resources

IDGC of the North-West is a socially responsible company committed to efficient and rational use of resources in all of its activities. We implement a set of measures aimed at maintaining and restoring natural resources by improving territories of electric grid bases, modernization of grids and decommissioning of obsolete equipment, reducing energy loss in its transmission, control over electrify use efficiency for the Company’s own needs.

Rational and efficient use of natural resources

In the reporting period a set of actions was implemented for protection of air and water reservoirs, protection and efficient use of lands, reduction of impact of physical factors on the environment. Expenses on resource saving measures increased by RUB1,711.1 in 2012 thousand compared to 2011.

In the reporting period within the framework of the effective Program for Implementation of Environmental Policy the branches of IDGC of the North-West took the following measures aimed at support and restoration of water resources:

• production department of the branches annually develop (review) a program of industrial control of emissions in the atmosphere pursuant to which regular measurements of emissions of pollutants in the environment from organized sources of pollution;
• draft justifications of an estimated area of a sanitary protection zone (within the framework of substation reconstruction) were prepared and obtained a positive expert opinion of the Center for Hygiene and Epidemiology;
• works are carried out for development and approval of projects for sanitary protection zones of drinking water sources;
• in the context of technical measures oil switches were replaced by vacuum switches, which enabled us to reduce the risk of environment pollution with transformer oil;
• reconstruction of oil-receiving bowls, oil pipes, devices of emergency oil collectors. The environmental effect — prevention of soil contamination with transformer oil.

These measures were aimed at ensuring compliance with the requirements of the environmental legislation, emission quotas, prevention of soil contamination with transformer oil, ensuring environmentally safe waste treatment.

The most important projects were implemented in Arkhenergo and Novgorodenergo branches.

In Arkhenergo branch works under project “Creation of a Complex of Facilities for Prevention of Soil Contamination in the Area of Location of Mezenskaya DPP” were completed and the first stage of project “Operation of a Complex of Facilities for Prevention of Soil Contamination in the Area of Location of Mezenskaya DPP” was implemented. The branch also carried out construction and assembly works for replacement of diesel generators equipped with the emission catalytic neutralization system (with nitrogen oxide purification degree about 80%).

In Novgorodenergo branch measures for protection and efficient use of water resources were taken. The key measures include the replacement of filter media by local sewage disposal plant (LSDP) for rainwater, cleaning of oil catcher, sinkers, wells of storm collections, repair and cleaning of channels of LSDP to the Velgiya river. These measures allowed reducing the content of suspended substances and oil products in storm water sewage. Pollutant discharge is carried out in accordance with the permit of the Federal Service for Supervision over Exploitation of Natural Resources (Rosprirodnadzor).

Restoration of natural resources

In order to compensate damage caused to the environment by tree cutting for making OL corridors the Company implements target communication program “Distribution Electric Grid Complex Committed to Environment Protection”. The program has been implemented in all regions of responsibility of JSC IDGC Holding (Russian Grids) since 2011.

Within the framework of actions taken in 2011-2012 we actively interacted with regional government authorities, local communities and educational institutions. Our employees planted greenery in the territories of orphanages and schools, historical monuments, city streets and squares. 17 new alleys were laid, including 7 Power Engineers’ Alleys, areas of 8 war memorials were improved. In all branches works for planting greenery and improving territories of REGs and technological connection facilities were performed.

Volunteer work of our employees was a separate area of activities aimed at compensation of damage caused to the environment by tree cutting for making OL corridors. The Youth Council of Karelenergo branch annually helps forest greenhouse complex Vilga to prepare nursery plants. Employees of Novgorodenergo branch work on restoration of forest on the forest tract of Yazhelbitsky forest district — they planted 16 thousand spruce nursery plants on the forest harvesting plot.

All information on the action and interactive map of events conducted in 2011-2012 are placed on specialized portal Forest Energy (Forest Energy).

Rational and effective use of energy resources

Rational use of energy resources and increased efficiency of electricity transmission are strategic initiatives of the Company corresponding to the state policy in the field of energy saving and energy efficiency increase.

Energy Saving and Energy Efficiency Increase Program

In order to achieve a high level of energy efficiency the Company implements the Energy Saving and Energy Efficiency Increase Program, which includes measures for loss reduction in electricity transmission, reduction of energy consumption for the Company’s own needs and provision of modern electricity metering systems to consumers.

In accordance with the effective laws of the Russian Federation and energy efficiency increase the Energy Saving Programs set target indicators of energy saving measures and energy efficiency increase, in particular:

• reduction of energy loss levels;
• equipping with electricity metering devices in the retail electricity market;
• reduction of specific energy consumption on production and own business needs.

In 2011-2012 the following approved Standards of the Company’s activities were developed and implemented in the branches, with further reference to regional regulating authorities:

• Energy Saving and Energy Efficiency Increase Program for 2011 and for the period until 2015;
• Energy Saving and Energy Efficiency Increase Program for 2012 and forecast for 2013-2017.

In 2012 the following standards of Company’s activities were developed and approved:
Energy Saving and Energy Efficiency Increase Program for 2013 and forecast for 2014-2018 with achievement of a target energy loss value of 7.27% in base conditions (by 2015).

Since 2010 prospective development programs for electricity metering systems in the energy retail markets of the Company’s branches are realized. These programs are included in the Energy Saving and Energy Efficiency Increase Program of IDGC of the North-West, with their goals being the following:

1. Timely and reliable provision of accurate and legitimate information on actual movement of goods (electric power and capacity) necessary for operation of the wholesale and retail electricity markets to all electricity market participants.
2. Garnering a technical and economic effect by:
   • collection of accurate data for formation of technical and economic indicators;
   • reduction of electricity loss in distribution electric networks;
   • control over fulfillment of material terms of agreements for technological connection and provision of energy supply services, purchase and sale and transmission of electricity made with related electricity market participants.

Measures for energy loss reduction

As one of its top-priority task the Company realizes the action plan aimed at optimizing (reducing) the energy loss level. Due to the implementation of a set of measures for loss optimization the total saving effect amounted to 61.04 million kW/h (RUB126.99 million) in 2012 and 69.4 million kW/h in 2011.

Measures for energy efficiency in the Company’s own activities

In order to ensure compliance with requirements of the federal laws regulating energy saving and enhancement of energy efficiency, a mandatory energy inspection and development of energy passport were carried out in the period from August 08, 2011 to December 31, 2012 in JSC IDGC of the North-West.

In order to implement measures for conducting energy inspections of production and business needs and electric grids facilities an agreement was made with JSC Energoservis of the North-West for conduct of energy inspection.

Based on the results of the energy inspection the following data were obtained: the total number of inspected facilities was 1,620, including 1,142 electric grid facilities; the total number of energy saving and energy efficiency enhancement measures developed was 7,315, including 5,901 energy loss reduction measures.

One of the key areas of activities aimed at energy efficiency increase was implementation of measures for reduction of consumption of electricity and other energy resources for the branches’ own needs.

Based on the results of the target measures taken the saving effect amounted to 58.36 million kW/h (RUB108.42 million, exclusive of VAT) in 2011 and 44.14 million kW/h (RUB94.68 million) in 2012.