Monday, 30 May 2017 Inter RAO Group Consolidated Financial and Operating Results for 1Q2017.
To join the conference call and get more details, please send a request to investor-relations@interrao.ru
Company Registrar 8–800–700–03–70
Bolshaya Pirogovskaya ulitsa, 27 building 2, Moskva, Russia, 119435  ·  +7 (495) 664–88–40  ·  office@interrao.ru

Trading

Trading

Inter RAO is a Russian electricity importer and exporter. It is also an active trader on the Russian Wholesale Electricity Market (WEM).

Exported electric power
in 2016
17 bn kWh
Imported electric power
in 2016
3.1 bn kWh

Strategic trading objectives:

  • retaining and strengthening the positions achieved in export/import;
  • effectively conducting cross-border trade in electricity including that generated abroad;
  • taking part in setting a legal framework within the Eurasian Economic Union (EAEU);
  • improving electricity trading mechanisms to ensure parallel operation of the Russian energy system and international energy systems.

Electricity import and export are closely linked to power/capacity trading in Russia. Inter RAO's key objectives include the improvement of wholesale electricity market regulation, in cooperation with infrastructure organizations, which provides for conducting trade in electricity and capacity most effectively for all market players.

Electricity export and import

In 2016, Inter RAO exported 17 billion kWh of electricity and imported circa 3.1 billion kWh.

Electricity export and import, million kWh
Indicator 2016 +/- 2015 2014
Export, million kWh
Including:
17 002-2.8% 17 492 14 043
Finland 5 282+56.1% 3 383 2 995
China 3 320+0.6% 3 299 3 376
Lithuania 3 019+0.8% 2 995 3 216
Belarus 3 181+13.0% 2 815 1 425
Ukraine 120-95.1% 2 462 178
Kazakhstan 1 164-24.5% 1 542 1 644
Georgia 406-20.6% 511 627
Mongolia 300+5.4% 284 390
South Ossetia 152+4.3% 146 140
Azerbaijan 60+8.6% 55 53





Import, million kWh
Including:
3.1432.15x 1 464 3 453
Kazakhstan 2 7262.75x 990 3 084
Georgia 148-13% 170 160
Lithuania 115-
115 43
Azerbaijan 120 +10.9% 108 134
Mongolia 34-37.5% 54 30
Finland -
-
23 0,234
Ukraine -
-
3.8 0
Belarus -
-
0.058 0.26

Electricity trading in Russia

At present, both the wholesale retail electricity and capacity markets are operating in Russia.

As part of its international business, Inter RAO Group trades in electric energy in the Russian Wholesale Electricity Market (WEM).

Taking into account the technological and system limitations inherent in the Unified Energy System of Russia, the territory of the country is divided into the following zones:

  • the first pricing zone (European Russia and Ural),
  • the second pricing zone (Siberia),
  • four non-pricing zones (Kaliningrad Oblast, Far East, Arkhangelsk Oblast and Komi Republic).

Imported energy is sold mainly on a competitive basis on the day-ahead market and the balancing market. Both energy and capacity are sold in the non-pricing zones as well.

To enable export, electricity and capacity are procured on the Wholesale Electricity Market both in the pricing and in the non-pricing zones.

In the non-pricing zones, the state regulates the prices for electricity and capacity.

In the first and second pricing zones, the following contract mechanisms are used for procurement:

  • regulated contracts for the sale and purchase of electricity and capacity;
  • purchase of electric energy at free (unregulated) prices on the day-ahead market operating on a platform provided by the Trading System Administrator (JSC ATS, http://www.atsenergo.ru/);
  • purchase of electric energy at free (unregulated) prices on the balancing market operating on a platform provided by the System Operator (JSC SO UES, http://www.so-ups.ru/);
  • purchase of capacity under contracts for the sale and purchase of capacity following capacity competitive auctions (KOM);
  • purchase of capacity under capacity delivery agreements (CDAs);
  • purchase of capacity under contracts for the sale and purchase of capacity of new NPPs and HPPs;
  • purchase of generating facilities which deliver capacity in the forced mode (FM);
  • purchase of capacity under contracts for the sale and purchase of capacity based on renewable energy sources (RES CDAs).

The wholesale market operates within the current legal and regulatory framework with the interaction between consumers, generating companies and the following technological and commercial infrastructure organizations:

  • Joint Stock Company System Operator of the Unified Energy System;
  • Public Joint Stock Company FGC UES (part of the group of companies of PJSC Russian Grids);
  • Association NP Market Council.
  • Joint Stock Company Trading System Administrator of Wholesale Electricity Market Transactions;
  • Joint Stock Company Financial Settlements Center.