IHA Congress 2011 - Session 8c - Rasim Khazkiakmetov

1. The major hydropower developments and trends in Russia June 2011

2. Russian “green energy” potential –global instrument for mitigating the consequences of climate change Russian commercial hydro-potential - about 10% of the global potential Global commercial hydro-potential - 8 576 tWh/year European part – about 50% of hydro developed Siberia – about 20% of hydro developed Far East – about 3% of hydro developed Russia Geographical localisation of Russia’s RES potential: Hydro-power - total 852 tWh/yr Wind –total 0.1 tWh/yr Geothermal –total 1 tWh/yr Tidal –total 250 tWh/yr 2

4. large power producers (corporations, most shares are traded);

5. high-voltage transmission company (state-owned);

6. power system operator (state-owned);

7. distribution companies (owned by state and individual shareholders);

8. electricity supply companies (individual owners)

9. Electricity price in Russia is sum of Wholesale Electricity Market price and transmittion&distribution tariffs regulated by Federal Regulatory Commission. Currently, WEM price is about 5 US ¢, end-consumer price is 8-10 US ¢ per kWh

10. Electricity consumption in Russia is currently less than peak demand in 1990s which is due to decline of heavy industry production and row materials exports after Soviet Union collapse and series of Global economic crisis from late 90th until 2008th financial disaster

11. The Russian power system has installed capacity of 214,8 GW with annual production of electricity 1004,7 GWh and consumption 988,8 GWh in 2010.Largest hydroelectricity producers (2009), GWh Electricity generation (2010), GWh Installed capacity ( Hydro, 2010), MW Electricity generation structure, 2008-2010, % 3

12. RusHydro at a Glance HPPs under construction Wind PPs GeoPPs Tidal PPs Wind PPs Kislogubskaya TPP Ust’-Srednekanskaya HPP, 570 МW Kolymskaya HPP, 900 МW Lengidroproekt Verkhne-MutnovskayaGeoPP, 12 МW The VNIIG Mutnovskaya GeoPP-1, 50 МW Zagorskaya PSHPP, 1200 MW Pauzhetskaya Geo PP 12 МW Cascade of Verhnevolzhskiye HPPs, 457MW Zagorskaya PSHPP-2, 840 МW Nizhegorodskaya HPP, 520 MW Institute Hydroproject Ryazan Energy Trading Company NIIES Kamskaya HPP, 522 MW Cheboksarskaya HPP, 1370 MW Votkinskaya HPP, 1020 MW Saratovskaya HPP, 1360 MW Chuvash Energy Trading Company Kalmytskaya WPP Zhigulevskaya HPP, 2320 MW Cascade of the Kubanskiye HPPs,462,4 MW Boguchanskaya HPP, 3000 МW Bureyskaya HPP, 2010 МW Volzhskaya HPP 2582,5 МW Krasnoyarsk Energy Trading Company Zeiskaya HPP, 1330 МW Karachaevo-Cherkessian branch, 160 МW Novosibirskaya HPP, 455 МW Zelenchugskiye HPP, 320 МW Kabardino-Balkarian branch, 90,1 МW Krasnoyarskaya HPP, 6000 МW (25%) Armenia North-Ossetian branch, 78,2 MW Sayano-Shushenskaya HPP, 6721 МW (incl. Maynskaya HPP) Kashkhatau HPP, 65,1 МW Dagestan branch, 1381,8 МW Irganaiskaya HPP, 400 МW Zaramagskiye HPPs, 352 МW Operating HPPs Sevan-Hrazdan cascade, 561MW Energy retail companies Operating HPPs under reconstruction Operating HPPs w/construction underway R&D institutes 4

13. Key Achievements and Events in 2010 Restoration of 2560 MW at the Sayano-Shushenskaya HPP Government decreed to transfer 40% stake in Irkutskenergo, 5 dams in Siberia and other hydro assets to RusHydro Project financing for completion of JV project with RUSAL (HPP + Aluminum smelter construction) secured from state-owned VEB Acquisition of a 100% stake in Moscow Hydroproject institute as part of expanding engineering and R&D capability Acquisition of a blocking stake in Krasnoyarsk HPP completed Acquisition of 7 hydropower plants (561 MW) of Sevan-Hrazdan cascade in Armenia Acquisition of a blocking stake in JSC BureyaGESstroy, hydroelectric facilities general contractor in the Far East The construction of Zagorskaya pumped storage plant No. 2 has been 50% complete All hydro-units of Kashkhatau HPP put into commercial operation 5

14. Key goals for hydropower developments and inter-state cooperation in 2011-2012 to increase RusHudro’s presence abroad up to 5000 MW to develop inter Governmental technical regulation package (in the framework of Custom Union of former Soviet Countries) to investigate opportunities for hydropower exports expansion in Europe and China to investigate opportunities for hydropower developments in Central Asian countries (Tadgikistan, Kyrgizistan) to investigate opportunities to develop oceanic hydropower potential (Mezen tidal PP, Russian seacoast of the Arctic Ocean) 6

16. 1Q 2011 production results were largely affected by unprecedented draught of 2010

17. Snowpacks accumulation levels will favorably impact 2Q 2011 electricity generation7

19. shipment up the Enisei river through Krasnoyarskaya HPP to the Mainskaya HPP

20. transportation to the construction site via a newly built road

21. The new phase in HPP restoration launched in 2011

22. During the next year 3 new hydro-turbines will be delivered to plant

23. First new hydro-unit will be connected to the grid8

24. Acquisition of Sevan-Hrazdan HPPs Sevan HPP Hrazdan HPP Lake Sevan Arzni HPP Kanaker HPP Argel HPP Yerevan Yerevan HPP-1 Yerevan HPP-3 Kanaker HPP In March 2011, RusHydro acquired Sevan-Hrazdan cascade from Inter RAO. 9

26. Currently, accounts for 9-10% of total electricity generation in Armenia.

27. The increase in production will depend on the rise of water level of lake Sevan, ensuing increase of irrigation discharges from the lake, planned maintenance CAPEX. In recent years, the lake has been rising 40-45 cm annually.Sevan-Hrazdan HPPs generation & output, 2006-2010 10

29. individual power producers, most of which are privately owned;

30. single distribution company (100% owned by Inter RAO UES);

31. high-voltage transmission company (state-owned);

32. power system operator (state-owned);

33. Electricity prices in Armenia are regulated by Public Service Regulatory Commission. Currently, end-consumer price for households is ca. 8 US ¢ per kWh at daytime and 5.3 US ¢ at night time; industrialconsumerspay from 4.3 to 5.3 US ¢ at daytime .

34. Electricity consumption in Armenia is currently less than ½ of peak demand in 1980s which is due to decline of industry, tariff increases, reduced losses and expansion of the gas network. In 2003-2008, Armenian economy has recovered, power consumption increased 3.3% p.a. 2009 saw a decline in demand on the back of lower industrial consumption, while 2010 again signals of recovery.

35. The Armenian power system has ca. 1.3GW of power exchange capability with the neighboring Georgia, Iran and Turkey as well as with Nagorno-Karabakh Republic.Electricity generation (2009) Electricity consumption (2009), MW Installed capacity (2010), MW Electricity generation, 2008-2010, TWh 11