Safety and Environmental Protection

Ensuring the Reliability and Safety of Hydro-power Facilities and Infrastructure

One of the Holding’s key strategic objectives is to ensure reliable energy supply and the safe operation of equipment and hydro-power structures for people and the environment.

The reliability concept in the power sector

The concept of ensuring reliability in the power sector has been developed by RAO UES of Russia in 2005. According to the concept, ensuring reliability in the industry is based on a combination of the necessary requirements and mechanisms, both economic and technological, as well as strengthening corporate responsibility.

Generating companies should be responsible for electricity production reliability, electrical and technological vitality and participation in the modes` control.

Reliability Control System

The main problem of Russia’s hydropower sector is the high depreciation of equipment (a few HPPs have equipment with depreciation of less than 25%).

RusHydro and its branches focus on mainstreaming reliable, accident-free and safe operation of HPPs and upgrading operational efficiency.

Approaches to Control

The approaches are used to ensure power supply reliability and the safety of equipment, buildings and structures, enshrined in RusHydro’s Technical Policy (put in to place in 2011). The Production Program, which includes several sub-programs, is the instrument for implementing the Technical Policy.

The Production Program is formed on the basis of assessing results of the state of equipment, based on forecast energy consumption in regions, the water content of rivers and the requirements of industry standards. The Program’s measures are planned for the mid-term (6 years) and long-term (15 years).

To identify and analyze insurance risks, surveys (independent technical reviews) are conducted at production assets; a key risk indicators system (indicators) and limits (check digits) are introduced, including monitoring the protection of objects in the case of natural disasters.

In 2011, the Board of Directors approved a Comprehensive Modernization Program (CMP) for RusHydro’s generating objects for the 2012–2025 period. Its mission is to maintain the safety and reliability of RusHydro’s generating objects in the longterm. Program financing for the 2012–2025 period will be RUR 445.5 bln in forecast prices, while the 2012 to 2020 period, it is required to finance 86% of its value.

The TPR program

The TPiR program is based on a comprehensive modernization program for generating objects of the RusHydro Group for the 2012–2025 period.

In 2010, the program was substantially revised, financing amounts were redistributed and priorities were set. Investment growth is explained by the appearance of an additional opportunity to finance the program in the necessary amount due to consistent liberalization of Russia’s electricity and power market.

Most of the funds are channeled to purchase hydro-turbine equipment, electrical equipment, the creation of automated process control systems and the creation of security system at the objects.

In accordance with the comprehensive modernization program for generating objects of the RusHydro Group for the 2012–2025 period, the increase in installed capacity of the existing objects, compared with 2011, will be 779 MW and the incremental increase in electricity generation will be 1,375.6 million kWh.

In 2011, major completed projects included: a new hydro-power unit with increased capacity measures (+10 MW) was put into operation at the Uglich HPP; capacity measures at the Volga HPP and the Zhigulevskaya HPP increased; the Irganayskaya HPP was restored; and reconstruction of the generating unit at the Saratov HPP was completed (the power transformer was replaced).

In 2011, numerous decisions aimed at further upgrading reliability control were made. The Regulations on the Design Organization (the general designer of objects for the comprehensive modernization of RusHydro) was approved. The interaction between the executive apparatus, the technical services of the branches and the general designers and research organizations for the R & D program was also organized; as a result of this, R & D volume increased more than 10 times compared with 2010.

The procurement program was approved. Project partners include the largest Russian and foreign companies, such as: Power Machines, Iberdrolla, Alstom, UEC, Foyt, Turboatom, etc.

Ensuring Facility Safety

To strengthen comprehensive measures on preventing accident situations, the 2010–2015 Program for the Safe Operation of RusHydro Hydro-power Facilities has been implemented. It is based on instructions and recommendations obtained from the results of investigations of the accident at the Sayano-Shushenskaya HPP.

Protection Against Terrorism

In connection with the probability of an occurrence of local conflicts, the Company may face the risk of terrorism. To reduce this risk, measures to ensure security are carried out constantly; and basic facilities are insured, including against terrorist attacks.

The protection of objects is carried out by a specialized organization within the Russian Ministry of Energy. Interactive plans exist The protection of objects is carried out by a specialized organization within the Russian Ministry of Energy. Interactive plans exist with law enforcement agencies to protect objects against the commitment or threat of commitment of terrorist attacks. On enterprise grounds, access control and internal security policy have been introduced.

The Сompany routinely inspects target hardness and trains staff, including conducting antiterrorism exercises and training. Together with the Russian Agency for Civil Defense and Emergency Situations, assessments of the most dangerous threats and the development of plans to prevent and eliminate possible consequences are carried out at generating facility locations.

Fire Safety

Fire safety measures in the hydro-power sector are subject to requirements from numerous regulatory acts. At Holding objects, a fire safety system operates, including: a fire prevention system, a fire protection system and complex organizational and technical measures to insure safety regulations. Safety declarations for hydro-power structures have been formalized.

Climatic Events

Given the importance of global climate change and its possible impact on RusHydro objects, the Company’s specialists considered the possibility of participating in the project of UNDP GEF on adaptation to climate change in Central Asia and Kazakhstan. In addition, technical feasibility including the water content factor and the assessment of its impact on electricity generation is developed at the Company’s facilities.

Accident Conditions

To improve the investigation and listing of accidents and incidents that occurred at dangerous production facilities, the Standard Procedures for Investigating and Listing Accidents and Incidents. Standards and Requirements” was approved.

During the reporting period, the number of technological incidents (accidents) in RusHydro’s branches was 99. The index has remained relatively stable over the past four years.

Almost half of the incidents are associated with equipment damage (45 cases), including the incapacitation of obsolete machinery, the failure of protective devices, project errors and incorrect installation. Twelve accidents were related to HPP staff errors and 3 accidents occurred due to the fault of the contractor’s personnel. To reduce the accident rate related to human error, joint emergency response exercises, specialized training of the HPPs’ response personnel and the contractors’ operation and maintenance personnel are conducted.