FGK UES OAO: The Future Means Innovations

Ten Years of Reliability

UES FGC OAO was established on June 25, 2002, in accordance with a program reforming the electrical power industry as a single operator for the Unified National (All-Russia) electric grid in order to preserve and develop the grid. Today, the company services 125,300 kilometers of transmission lines and 856 substations; the transmission facilities are located in 73 Russian Regions. During these last ten years the main task of the Federal Grid Company was to ensure the reliable operation of UNPG, because the development of national economy and welfare of the population as a whole depend on it greatly.

Investments and Smart Energy

Federal Grid Company executes large-scale investment activities in the field of developing the power supply network. Thus, an investment program designed for 2010-2014 has been systematically implemented, which provides for large-scale construction and reconstruction of transmission facilities. In 2011, as part of the investment program, more than 550 objects worth about 150 bn rubles were included in the Unified National Power Grid (UNPG) as its fixed assets. The number of new substations and transmission lines in 2011 was double what it was in 2010, and totaled 84 power facilities with a total transformer capacity of 18,502 MVA. In 2011, the total length of new power lines reached 2,963 km.

Among the major projects of the company is the construction of facilities to provide power to the 2014 Olympics in Sochi, as well as the construction of network infrastructure to provide electricity to the APEC CEO Summit and the second stage of Eastern Siberia - Pacific Ocean crude oil pipeline.

As a part of the “Development of Vladivostok as a Center for International Cooperation in the Asia-Pacific Region” subprogram of the federal target program on “Economic and Social Development of the Far East and Transbaikalia for the Period Until 2013”, UES FGC OAO fulfilled its obligation to secure the electrical consumers of the city. It has created all conditions necessary to supply the sites for the APEC CEO Summit that takes place in that period. For this purpose, in 2010/2011 the company built and commissioned eight main electricity supply facilities, and also implemented a project to create a spatial cluster for the energy system with an active adaptive network. This greatly increases the reliability of summit power facilities, the infrastructure of the Far Eastern Federal University and the residents of the island portion of Vladivostok.

The regional cluster energy system on Russkiy Island is a bright example of implementation of one of the most important areas of investment program; namely, the creation of the next generation smart grid that is built on the use of innovative principles and technologies in electric power transmission and transformation. The total combined economic impact of creating the smart grid for Russia’s economy could reach 50 bn rubles a year.

The Path to Association

Today, the Federal Network Company faces an even more ambitious goal, and in accordance with the directive of the Russian Government it is taking control over the electrical distribution network managed by Holding IDGC. Experts agree that this will solve the whole complex of problems accumulated in the industry and is the most effective manner of upgrading network infrastructure while pursuing a policy to contain growing electricity rates.

According to Chairman of the Management Board, Oleg Budargin, this decision will allow work on the modernization and development of power grids to be coordinated, including for the purpose of organizing smooth operation of the power system and reliability of the power supply. The key objective of transferring electrical distribution networks to the global player, in the opinion of the head of the Federal Grid Company, is to control the tariff burden on the consumer.

Today, UES FGC OAO is ready to spearhead development of the electrical grid complex, to set the trajectory of its modernization on the basis of a new innovative technology to ensure reliable supply of electricity and the rapid growth of the economy.