3. Development strategy

In 2022, the implementation of Gazprom PJSC’s Electricity Generation Strategy for 2018-2027 continued, providing for introduction of new generating capacities and modernization of existing ones, as well as for decommissioning of economically non-feasible facilities, further improvement of operational efficiency, utilization of import substitution equipment, and operations diversification.

The strategic objective is to ensure stable profit growth while maintaining a high-level reliability of energy supply to consumers.

3.1 The Strategy of Gazprom PJSC in electrical energy industry for 2018–2027

Participation of OGK-2 in the program for modernization of “obsolete” generation capacities (CCTMod)

* With account to recertification.

3.2 Key results of the Strategy implementation in 2022

3.2.1 Implementation of the Action Plan to increase operating efficiency and optimize costs of OGK-2

Following the results of 2022, the effect of the implementation of the Plan approved by the Board of Directors of OGK-2 amounted to 190.8 million rubles.

OGK-2 is working to enhance operational efficiency in such areas as improvement of production activities, cost optimization, sales of non-core assets, reduction in the cost of supply of goods/provision of services through the use of competitive purchasing methods, and import substitution measures. The Action Plan to increase operational efficiency and optimize costs of OGK-2 is aimed at fulfilling the Company’s potential in the main type of activity and is formed in the following sections:

  • improvement of operational and investment efficiency;
  • organizational and structural measures aimed at improving the operations efficiency;
  • technological independence.

3.2.2 Involvement in large-scale projects to build generating capacities

As part of the program for modernization of generating capacities (CCTMod), OGK-2, PJSC in 2022 continues its CCGT-324 and CCGT-170 power units construction projects at the site of OGK-2 branch i.e. Novocherkassk SDPP.

In 2022, contracts were signed for the manufacture and supply of main equipment with:

  • United Engine Corporation-High Power Turbines LLC (gas turbine equipment);
  • Power Machines JSC, (boiler and steam turbine equipment).

3.2.3 Environmental efficiency

OGK-2 operations are directly related to the use of natural resources and the impact on the environment. In this regard, the Company takes all possible measures to minimize its harmful impact on the environment and allocates significant funds to implement relevant measures.

Due to investment programs for construction and modernization of capacities, replacement of coal in the Company's fuel balance by a more environmentally friendly natural gas, and due to implementation of environmental measures, there is a steady trend in reducing the total gross atmospheric emissions, as well as greenhouse gases emissions in the period from 2007 to 2022. According to the results of industrial environmental control, only over the past 6 years, emissions of pollutants into the atmospheric air have decreased by 75%, and greenhouse gas emissions have decreased by 38%.

Over the past 6 years, emissions of pollutants into the atmospheric air have decreased by 75%, and greenhouse gas emissions have decreased by 38%.

3.2.4 Modernization of generating capacities

A cycle of new investments was launched in 2019: The Company will upgrade “obsolete” capacities in the Leningrad Region (Kirishi SDPP: Turbines TG-1t, TG-2t, TG-4t) and in the Khanty-Mansi Autonomous District of Yugra (Surgut SDPP-1: Turbines 13G, 16G, 2G, 12G).

In 2022:

  • under the TG-2t project of Kirishi SDPP, equipment was supplied, construction and installation was completed, and commissioning initiated. Turbine unit commissioning is scheduled for the first quarter of 2023;
  • under the TG-1t project of Kirishi SDPP, the supply of auxiliary equipment began, preparatory work was completed to bring the facility into modernization;
  • preparations were completed at Surgut SDPP-1 facility, the turbine was put into modernization from 01/01/2023.
The Company also intends to participate in the modernization projects selection for 2028-2031.

3.2.5 The OGK-2 program of effective measures

The OGK-2 program of effective measures includes development of design and working documents “Implementation of the project for the installation of a standby gas compressor”. The purpose of the work is to improve the reliability of gas supply to the gas turbine units of Adler TPP by installing a backup gas compressor, which ensures the possibility of fuel gas supply to the gas turbine units in cases when the main compressor is shut down controlled by APCS of Adler TPP. The design and estimate documentation is currently being developed.

In 2022, an agreement was concluded for the manufacture and supply of equipment with REP Holding JSC, which is part of the ‘Gazprom Energoholding Industrial Assets Group’.

The investment program of OGK-2, PJSC provides for minimization of the adverse environmental impact. The introduction of the state-of-the-art technologies will allow the Company to comply with all necessary requirements of both Russian and international environmental protection laws.