RusHydro Increased Electricity Generation by 5% in the 9 Months of 2011
RusHydro Group (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces the operating results for the 3rd quarter and 9 months of 2011.
The Group's total electricity generation in the 9 months of 2011 amounted to 59,213 GWh - an increase of 5.3% compared to the same period of 2010. In the 3rd quarter of 2011, electricity generation grew by by 9.6% to 19,948 GWh against the 3rd quarter of 2010. Net output of electricity in January-September 2011 also increased by 5.3 % to 58,223 GWh.
3Q and 9M 2011 electricity generation (GWh)
The main factors behind the generation growth were the reconstruction of 4 out of 10 hydro-units of the Sayano-Shushenskaya hydropower plant that had been damaged during the 2009 accident as well as rationalization of water use of reservoirs.
January-September of 2011 was marked by subnormal water levels in European Russia and Far Eastern region. Initial forecasts made by the Hydrometeorological Center of Russia in early 2011 on increased water accumulation in snow packs didn't materialize; water inflows were lower or similar to average long-run.
The total electricity generation of RusHydro's hydropower plants in Siberia in the 9 months of 2011 increased by more than 75% year-on-year to 16,530 GWh.
In the 1st quarter of the year, Siberia enjoyed favourable hydrological situation. Water inflow into basins of the Siberian rivers gradually decreased during the 2nd and the 3rd quarters of the year. Overall, in the 9 months of 2011, the water inflow in Novosibirskoe and Sayano-Shushenskoye reservoirs was 78% and 94% of average long-run.
In the 3rd quarter, the water regime of the Sayano-Shushenskoye reservoir was established with account to reservoir filling intensity set by Lenhydroproject, change of controlled hydrotechnical parameters, transportation of major hydropower equipment for the continuing reconstruction of the Sayano-Shushenskaya power plant by river and pre-commissioning test runs of the onshore spillway. The maximum replenishment of the Sayano-Shushenskoye reservoir in 2011 was 536.98 m which is consistent with the level approved by the Federal Agency for Water Resources for 2011.
According to the forecasts by the Hydrometeorological Center, the water inflow into the Sayano-Shushenskoye reservoir in the 4th quarter of the year will be close to long-term annual average, and 15-50 % less against normal values in Novosibirskoe reservoir.
In the 9 months of 2011, electricity generation in the Far East decreased by 11% to 9,271 GWh year-on-year. The decrease of generation volume is associated with higher reservoir levels in early 2010, low inflow to the Far Eastern reservoirs in the 2nd and the 3rd quarters of 2011 as well as the necessity to maintain low reservoir level of the Zeiskaya hydropower plant to avoid spilling extra water as dam reconstruction works are in progress.
In European Russia, unprecedented heat and decreased water inflow in in the second half of 2010 resulted in 23% decrease of reservoir levels relative to long-term average. In the 1st quarter of 2011, the water inflow was lower compared to previous years but exceeded the long-time annual average by 5%. In the second half of 2011, the water inflow figures were 18% lower than normal.
To implement water saving policy, the Lower Volga hydropower plants operated using water flows that were less as compared to long-term average. For the first time in recent years the pre-flooding reservoir drawdown reached 53.2 km3 which is close to optimal design levels.
As a result of water saving policy the replenishment of reservoirs by the end of the 3rd quarter was only 2.5 km3 less than long-term average, but exceeded last year's levels by 8.6 km3, which may result in 4th quarter electricity generation close to normal levels. In the 1st quarter of 2012, electricity generation is likely to higher year-on-year.
Rationalization of water use during the 9 months of 2011 led to electricity generation of hydropower plants of RusHydro Group in the central regions of European Russia in the amount of 27,431 GWh which is only 5% less than in 2010. Increased water levels of Volga-Kama reservoirs (5-7% above last year) enabled a surge of 10% in electricity generation in central Russia.
The total inflow of water in the reservoirs of Volgo-Kama basin is forecasted to be 29-37 km3 with normal levels at 36.6 km3.
South and Northern Caucasus
Hydrological situation in North Caucasus and South Russia during the 9 months of 2011 was marked by decreased or nearly normal inflow levels. This fact combined with outage of the Irganayskaya hydropower plant in the first half of 2011 resulted in 23% decrease of generation by RusHydro's plants in the region.
Sevan-Hrazdan cascade of seven hydropower plants in Armenia generated 600 GWh of electricity in the 9 months of 2011 - 9% less than last year.
The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.