Position in the industry
In the Russian electricity generation market, RusHydro Group holds leading positions: the main competitors are independent Russian energy companies established following the reform of RAO UES of Russia and the State Corporation Rosatom.
The main factors affecting the state of the industry:
- GDP growth rates, which determine the demand for electricity and require the schedules of its consumption, the level of investment in the creation of new capacities;
- legislative framework that determines the payback of projects in the energy sector, the sources and structure of the investment portfolio of energy companies, the level of competition, etc.;
- level of state stimulation of the development of separate types of generation;
- state of the basic production assets of the enterprises of the industry;
- socio-economic climate in the country;
- availability of capital markets, including credit resources;
- level of payment discipline of electricity consumers.
The share of RES and hydropower on the Group's energy balance is 78%. Competitive advantages of HPPs:
- Environmentally friendly. Hydraulic resources are a renewable and the most environmentally friendly source of energy, the use of which allows to reduce emissions of thermal power plants into the atmosphere and to preserve hydrocarbon fuel reserves.
- High maneuverability - hydroelectric power plants are most maneuverable and capable of significantly increasing production volumes in a matter of minutes, covering peak loads.
- Absence of a fuel component in the cost price of production - independence from changes in prices for energy carriers and as a result the possibility of long-term guarantees of the price for consumers.
|Year||Electricity output, bn kWh||Share, %||Installed capacity, GW||Share, %|
|Russian Federation||RusHydro Group Data are given taking into account the PJSC Boguchanskaya HPP (a joint venture of PJSC RusHydro and UC RUSAL), taking into account the HPP-2 of PJSC KamGEK, without taking into account the HPP-1 and HPP-3 of PJSC KamGEK located in trust management.||Russian Federation||RusHydro Group Data are given taking into account the PJSC Boguchanskaya HPP (a joint venture of PJSC RusHydro and UC RUSAL), taking into account the HPP-2 of PJSC KamGEK, without taking into account the HPP-1 and HPP-3 of PJSC KamGEK located in trust management.|
In 2011, RusHydro Group acquired a 90% stake in the Sevan-Hrazdan HPPs Cascade with 561.4 MW of installed capacity in the Republic of Armenia. Thus, entering the electricity market of Armenia, PJSC RusHydro gained a significant share of this market.