2.7. Heat and Electricity Generation
The Gazprom Group is one of Russia’s largest companies in terms of generating assets, featuring 40.13 GW of installed electric capacity and 70,270 Gcal/h of installed thermal capacity.
The Group’s power sector assets are managed by Gazprom Energoholding LLC. At the end of 2019, Gazprom Energoholding acquired 100% of the authorized capital of JSC REP Holding, a manufacturer of equipment for gas transmission systems and power generation facilities. With REP Holding now part of Gazprom Energoholding, the customer—manufacturer relations will be streamlined, and production localization projects will be implemented.
Gazprom Energoholding generated a total of 143.07 billion kWh of electric power in Russia in 2019, which is 2.4% less than in 2018, as hydro generation decreased and the generating equipment was optimized. Heat generation amounted to 115.26 million Gcal in 2019, which is 7.3% less than in 2018, due to an unusually warm winter season. In 2019, the companies of Gazprom Energoholding sold 152.83 billion kWh of electric power and 110.85 million Gcal of thermal power.
Gazprom Energoholding also exported electricity to Finland in the reporting period, with the actual export supply volume amounting to 0.72 billion kWh.
For more details on the electricity and heat generation and sales by the generating companies of Gazprom Energoholding LLC see Appendix 4
Relations with Electric Power and Capacity Consumers
Gazprom Energoholding sells electric power and capacity predominantly on the wholesale market. The key customers are major users, energy sale (energy supply) organizations and guaranteeing suppliers that procure electric power or capacity for sale to end customers, including residential customers.
Gazprom Energoholding liaises with major wholesale customers mainly on the platform provided by the Association “Nonprofit Partnership Council for Organizing Efficient System of Trading at Wholesale and Retail Electricity and Capacity Market” (Association “NP Market Council”). In 2019, the Association’s Supervisory Board held 16 meetings in absentia and 12 in-person meetings.
Relations with Heat Consumers
Interaction with the consumers of heat is based on their category.
In the heat supply segment, key customers are property and housing management companies (60%), state-funded organizations, including the Ministry of Defence of the Russian Federation (12%), heat supply companies (6%), residential customers (4%) and other consumers (18%).
In most of Gazprom Energoholding’s companies, interaction with residential customers is a separate business process carried out by a relevant structural unit, whose task is to ensure affordable terms and convenience for consumers. To improve the quality of interaction, remote services such as call centers and personal online accounts are being developed and adopted.
In 2019, a large-scale information campaign was launched in the Moscow Metro, aimed at improving consumer awareness about heat supplies. The campaign featured video clips about the specifics of centralized heat supply, explaining some technical details of heat supply processes in an entertaining and understandable way.
A customer survey was conducted across all companies of Gazprom Energoholding in 2019, which showed that the customers are highly satisfied with the services provided.
No incidents of non-compliance with electric and thermal power quality regulations concerning the health and safety impacts of products and services were recorded in 2019.
Electric and Thermal Power Projects
In 2019, the launch of Power Unit No. 2 (184 MW) of the Grozny TPP marked the completion of the ambitious investment program aimed at building new generating capacities under capacity supply agreements (CSAs). From 2007 through 2019, PJSC Gazprom brought into operation 9 GW of new capacities under CSAs, including 18 combined cycle gas turbine units, 5 steam power units, 8 hydroelectric units, and 6 gas turbine units.
Outside of CSAs, key projects in 2019 included the construction of the Svobodny TPP for supplying power to the Amur GPP and the combined cycle TPP in Pancevo (Serbia) with a capacity of about 200 MW.