Power Engineering

Whilst Rusneftegaz is one of the foremost Russian oil companies in terms of hydrocarbon extraction, our organization has also successfully accumulated a large holding of energy generation assets. Consequently, the production and sale of both electricity and heat has now become one of the most lucrative areas of our business, with our enterprise emerging as a leading entity in the management and renovation of thermal power stations globally. Through the deployment of both world-class expertise and innovation, we have engineered a considerable percentage of the equipment utilized in our plants, significantly reducing costs to maximize reliability and profitability. This has ultimately resulted in us becoming one of the most efficient entities involved in the domestic electricity sector, principally via the application of best practices from all corners of the globe and the use of both innovative technology and solutions.

In recent times, our average annual output has been approximately 10,0 billion kilowatt-hours (KWh), with Rusneftegaz currently operating 1.860 megawatts (MW) of coal-fired generating capacity across three 600,0 MW units in the province of Vologda. The plants were originally constructed to provide electricity and heat to industrial enterprises, and since their acquisition by our company, each has been considerably overhauled to adhere to contemporary standards. In its current configuration, our power station is arranged in a block layout, with each unit consisting of a condensing turbine manufactured in France by Alstom, in conjunction with a once-through supercritical steam generator functioning via passive heat exchange. The site also maintains a condenser working via a closed circulating water supply system with dry fan cooling towers. This process operates with the cooled liquid traveling within a loop, thus not increasing air pollution or humidity as a result. Our total production data for the past five years can be reviewed in the table below:

		2019	2020	2021	2022	2023
Total electricity production	(TWh)	10,46	8,55	9,44	10,31	10,82
Installed capacity utilization	(%)	64,20	52,47	57,94	63,28	66,41
Total installed capacity	(MW)	1.860	1.860	1.860	1.860	1.860

 

At present, our generating capacity is structured to comply with all legal requirements regarding the production of electricity and heat, including all environmental legislation. This is achieved by utilizing equipment, materials, and solutions that satisfy the highest Russian and international ecological standards. Thus, we operate in conformity with ISO 50001, which provides stipulations regarding energy security and usage. As a consequence, our executive leadership has continuously strived to sustain and improve our operations in accordance with this code, ensuring our internal assessors uphold these practices prudently. Fundamentally, our primary objective is to devise and implement our projects through the introduction of state-of-the-art energy efficiency technologies, while also optimizing the reliability of the plant. For instance, we are planning to install advanced sensors that calculate loading and discharge rates, which will maximize operational effectiveness and regulate fuel consumption accordingly. In spite of the fact that bituminous coal serves as the main and reserve fuel of our power station, we also maintain a 60,0 MW diesel generator assembled by Wärtsilä for standby purposes.

​At this moment in time, we are implementing a comprehensive regeneration program of our installed capacity, with the main intention of these investments being to enhance the dependability and efficiency of our assets. This ultimately entails replacing the existing generation architecture with contemporary machinery that represents a marked improvement from its predecessor. The aim of this scheme, however, is not to replace individual components and parts, but to comprehensively modernize our generating facilities as a single, homogenous unit to manage their unique and complex requirements. Therefore, Rusneftegaz plans to reconstruct all the main and auxiliary equipment of the power stations, in addition to the corresponding electrical systems. This necessitates reviewing multiple high-voltage circuit breakers and switch gears, plus hundreds of pieces of secondary switching apparatus and other ancillary instrumentation.

With such a considerable volume of works required, we will work with an array of manufacturers from around the world to guarantee the integrity of both our plant and our operations. Although we prioritize collaborating with Russian companies when signing these contracts, our management only does business with those who specialize in coal-fired generation and have developed technologies that are tailored to our immediate needs, irrespective of country of origin. For example, we require infrastructure that can provide us with high reliability and enhanced operational performance, whilst also reducing both fuel consumption and emissions into the atmosphere. We have previously reconstructed our steam generators to increase the quality and rate of the superheated gas, and may opt to expand the megawatt capacity of our power plants in due course. Nevertheless, the main focus of the overhaul of our turbines is to modernize this equipment to align with current standards of electrical engineering. These revised designs will also ensure greater effectiveness, while significantly mitigating repair costs and lengthening the service life of the assets.

​Despite the extent and cost of said upgrades, we aim to achieve long-term financial stability with these projects. However, the principal objective of our energy generation division is to provide a reliable heat and power supply to our customers. Such an undertaking is accomplished by not only focusing on improving efficiency, but also developing our personnel to maintain the highest professional standards attainable. This includes training each individual to comply with all local and national laws and regulations, uphold our stringent safety requirements, and aspire to protect the environment. As a result, we conduct rigorous risk assessment and planning when conducting our activities, and ensure that all work is completed to guarantee client satisfaction. Our enterprise also makes a meticulous effort to safeguard the knowledge accrued by our staff, by valuing both experience and the most longstanding members of our workforce, whilst also endeavoring to recruit the next cohort of young employees into our company.

In the longer term, our development strategy is focused on further growth within Russia and internationally. Our portfolio will be diversified into more efficient and sustainable infrastructure, concentrating on modern and advanced thermal generation. In 2030, we plan to have the capability to manufacture and export machinery to expedite our worldwide expansion. In the meantime, our organization aspires to cooperate with global corporations and businesses in the near and distant future for the mutual benefit of our respective entities. For instance, we aim to collaborate with power equipment manufacturers to acquire ground-breaking foreign technologies, which will accelerate our progress and modernize our existing production assets. Both our leadership and our researchers will continue to monitor the international energy sector, with the expectation that the latest research will enable us to increase the competence of our undertakings and allow us to consider expanding into new markets. Regardless, all such notions will always be conducted upon consideration of the best interests of Rusneftegaz, and also the geopolitical and strategic concerns of the Russian Federation.