Investment activities
INVESTMENTS ARE THE BASIS OF RELIABLE POWER SUPPLY AND THE MOST IMPORTANT COMPONENT OF THE COMPANY’S PERFORMANCE.
In 2021, within the framework of the investment activities, the Company commissioned 220 MVA of transformer capacities and 612 km of electricity transmission lines. Construction of a 110 kV electricity transmission line to connect the consumer terminals of JSC Novoroslesexport, to the distance of 9.4 km, was completed. This project is designed to power the 110/35/10 kV Lesnoy Port substation and the future refrigeration yards with technological equipment on the territory of Novoroslesexport to increase the throughput capacity of the container terminal. In addition, renovation of two more high-priority facilities was completed in 2021 as part of the implementation of the tripartite agreement concluded in 2020, as well as in pursuance of directives from the Russian Federation government to create affordable power infrastructure to supply industrial and investment sites in the Republic of Adygea. The 35/10 kV Kuzhorskaya substation and 110/35/10 kV Adygeyskaya substation were reconstructed with the replacement of transformers”.Viktor Korzhanevskiy Deputy General Director for Investment Activities, Rosseti Kuban, PJSC
The investment programmes of Rosseti Kuban are developed according to the roadmaps for the prospective development of the electric power industry in the Krasnodar Territory and the Republic of Adygea, technical condition of power grids, and available sources of financing, based on the tariff-and-balance solutions.
Approval and control over the implementation of the Company’s investment programmes are performed by the Ministry of Energy of Russia.
In the reporting year, the Rosseti Kuban’s investment activity was performed as part of implementing the Investment Programme for 2021 approved by the Order of the Russian Ministry of Energy No. 21@ dated 16 December 2021.
In 2021, the Board of Directors of the Company considered the following issues:
- Quarterly reports on the implementation rate of the higher-priority investment projects
- The findings of the on-site audit conducted by the Ministry of Energy of Russia to check on the status of the following investment projects: construction of 110/10 kV Angarskaya Substation with connection of 110 kV overhead lines and construction of 110 kV electricity transmission lines for grid connection of JSC Novoroslesexport consumer terminals
Progress on the Investment Programme in 2019–2021
| Indicator | 2019 | 2020 | 2021 | Δ 2021/2020 (%) |
|---|---|---|---|---|
| Volume of | 5,445 | 5,608 | 7,215 | 29 |
| Assimilation of capital investment (RUB mn) | 6,769 | 4,658 | 5,871 | 26 |
| Commissioning as a part of fixed assets (RUB mn) | 12,912 | 4,418 | 5,128 | 16 |
| Commissioning as a part of transformer capacities (MVA) | 783 | 159 | 220 | 39 |
| Commissioning as a part of power transmission lines (km) | 791 | 593 | 612 | 3 |
In 2020, financing for PJSC Rosseti Kuban in general increased by 29% year-on-year. That is driven by financing the main scope of the investment measures in terms of meeting the conditions of the grid connection agreements in the reporting year.
Funding Streams and Structure of Capital Investments
The main focus areas of the Rosseti Kuban’s Investment Programme in 2021 were:
- Grid connection — RUB 4,370 mn, incl. VAT (60.6%)
- Retrofitting and renovation — RUB 2,592 mn, incl. VAT (35.9%)
- Investment projects, the implementation of which is determined by roadmaps for the prospective electric power industry development — RUB 30 mn (0.4%)
- Other new
construction – RUB 5 mn, incl. VAT (0.1%) - Other investment projects
(funded) – RUB 218 mn, incl. VAT (3%)
| Investment projects | 2019 | 2020 | 2021 |
|---|---|---|---|
| TOTAL | 5,445 | 5,608 | 7,215 |
| Grid connection | 2,256 | 2,895 | 4,370 |
| Renovation, upgrading and retrofitting | 1,789 | 2,046 | 2,592 |
| Investment projects which are driven by the roadmaps for long-term development of the electric power sector | 920 | 207 | 30 |
| Other new construction of grid facilities | 42 | 27 | 5 |
| Other investment projects | 438 | 433 | 218 |
Long-Term Investment Programme
| Indicator | Period | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 (actual) | 2021 (actual) | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
| Volume of financing (RUB mn) | 5,608 | 7,215 | 9,975 | 9,432 | 5,102 | 6,044 | 6,279 | 6,499 |
| Assimilation of capital investment (RUB mn) | 4,658 | 5,871 | 8,856 | 6,396 | 4,334 | 4,639 | 5,835 | 4,481 |
| Commissioning as a part of fixed assets (RUB mn) | 4,418 | 5,128 | 8,183 | 9,123 | 4,201 | 4,661 | 4,852 | 5,774 |
| Commissioning as a part of transformer capacities (MVA) | 159 | 220 | 539 | 412 | 144 | 64 | 154 | 301 |
| Commissioning as a part of power transmission lines (km) | 593 | 612 | 520 | 695 | 451 | 492 | 493 | 514 |
Capital Construction Quality Control
THE COMPANY CARRIES OUT CONSTRUCTION CONTROL AS PART OF THE IMPLEMENTATION OF RUSSIAN FEDERATION GOVERNMENT RESOLUTION NO. 468 DATED 21 JUNE 2010 ON THE PROCEDURE FOR CONSTRUCTION CONTROL DURING CONSTRUCTION, RENOVATION AND CAPITAL REPAIR OF CAPITAL CONSTRUCTION PROJECTS. THE CONTROL IS AIMED AT VERIFYING THE COMPLIANCE OF THE WORKS PERFORMED WITH THE REQUIREMENTS OF THE DESIGN DOCUMENTATION, TECHNICAL REGULATIONS, THE TOWN-PLANNING SCHEMA OF A LAND PLOT, AND THE RESULTS OF ENGINEERING SURVEYS.
At ten facilities with a voltage of 35 kV and above, at which construction and installation works were performed in 2021, independent expert and inspection entities were involved in the construction control.
| Facility | Construction period | Capacity commissioned | Investment amount (RUB mn, excl. VAT) | ||
|---|---|---|---|---|---|
| Start | End | km | MVA | ||
| “Reconstruction of the 35/10 kV Kuzhorskaya substation with replacement of T-1 and T-2 transformers (2×2.5 MVA) with 2×10 MVA transformers, with reconstruction of 10 kV power transmission line (K–10)” | 2020 | 2021 | 11 | 20 | 178 |
| “Reconstruction of the 110/35/10 kV Adygeyskaya substation. Replacement of 2×16 MVA transformers with 2×25 MVA transformers” | 2020 | 2021 | – | 50 | 105 |
| “Construction of 110 kV power transmission line for grid connection of consumer terminals of JSC Novoroslesexport” | 2017 | 2021 | 9 | – | 516 |
