Experience in NEA Power cooperation development and

vision a way forward

Irkutsk, 29-31.08.2017

#2 Oil consumer

#1 Aluminum consumer

#1 Coal consumer

#2 Oil producer

#1 Aluminum producer

#6 Coal producer, #3 coal exporter

EuroSibEnergo has a strong presence in

the Siberian power market

Oil deposits

Natural gas deposits

Coal deposits

Aluminium smelters

EuroSibEnergo HPPs

Russia owns and develops one of

the richest natural resource bases

globally; significant resources /

production facilities are concentrated

in Siberia

Fast-growing Asian markets and, in

particular, China are quickly

becoming major consumers of

natural resources in global terms

Extraction and production of key

natural resources (crude oil, natural

gas, aluminum, timber, etc.) are very

energy-intensive processes

Therefore, reliable supply of

Russia’s commodities to the global

market depends on availability of

sustainable and competitive power,

such as that provided by

EuroSibEnergo

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EuroSibEnergo is a source of sustainable power for Russia’s

commodities feeding global and Asian growth

Positioned to benefit from long term trends in China and Asia

Over ¾ of ESE generation portfolio comes from HPPs located on the Siberian rivers. ESE is one of the

largest hydropower generation companies in the world and one of the major producers of green

energy in Russia aiming at sustainable development

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Green energy generation

▪ ESE operates 19 power plants

with total installed capacity of 19.6

GW of which over 15 GW is hydro

▪ Low average annual temperature

of minus 2 °C near HPP

impoundments located in Siberia

provides ecological advantage in

terms of greenhouse gas

emissions in comparison with

HPPs located in warm climate

▪ High load factor of the Angara

river enables to generate more

carbon neutral energy without use

of fossil fuels

▪ In December 2015 we diversified

our clean energy mix by launching

a pilot solar PV power project–

Abakan SPP – with elements of

basic equipment produced in-

house. The launch of Abakan SPP

reinforced ESE leading position in

green energy generation

in Russia.

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Этап 1.

Исследование вариантов экспорта электроэнергии в

Китай, в рамках Рабочей Группы ФСК 2012г.

Stages of investigations in NEA power cooperation. Stage 1.

Grid infrastructure research on Russia territory (East Siberia) for electricity

export to China (2012)

▪ Large-scale deliveries in the amount of 6.9 GW collected through the network of 500 kV from newly constructed export-oriented power plants

of the Russian Federation, and transferred with the bridge DC +-600/800 kV from collection points in the Republic of Buryatia and

Zabaykalsky Krai to the Northern China district Beijing;

▪ Local small-scale supply of electricity to border areas in amount of 350 МW through the existed power network 110-220 kV.

The power export to China took into account::

Opportunities for delivering electricity from the East Siberian regions of the Russian Federation to China were explored. Grid infrastructure layout on the territory of the Russian Federation ensuring the specified volume of export (~7 GW) was designed and estimated its approximated cost

- Newly constructed

power lines 500 kV

DC bridge to China

Collection point 1

Collection point 2

1. Isolated operation of power systems of Russia and China (used as reference model to compare with other options);

2. Joint operation of power systems of Russia and China in the one-way export of electricity from Russia to China via the interstate electric bridges DC +-600/800 kV:

1) Far East–Northeast China - 4 GW

2) Eastern Siberia –North China - 6 GW;

3. Joint operation of power systems of Russia and China in the bilateral transfer of energy regime through the the interstate electric bridges: transmission volumes to be optimized depending on daily, seasonal irregularities of demand and supply, irregularities of renewable energy sources, implementation of systemic effects of the interstate power systems association (effects of scale);

4. Local supply of electricity to border areas.

Stages of investigations in NEA power cooperation. Stage 2.

Investigation of electricity supply options from Siberia and Far East of

Russia to China (2013-2014гг.)

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Efficiency of the two sides interconnection increases in the case of bidirectional flows of

electricity and realization of integration effects of combining annual and daily load curve,

improving the modes of power plants, compensating irregularities production of renewable

energy and other systemic effects (option # 3). This is true without possible ecological payments

which can change the picture.

Research model: Supply options that were analyzed within the research:

The main conclusions

RUSSIA

CHINA

KA

ZA

KH

ST

AN Siberia

Ural

North China

North-East

China

The Far East

Central and

South China

North-West

China

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Stages of investigations in NEA power cooperation. Stage 3.

Development of optimal routes of electricity delivery from Russia to China,

the Republic of Korea, Japan and DPRK (2014-2015)

▪ savings of operation expenditures

of joint power system (including the

costs in electric grid infrastructure) -

more than $ 17 billion./year;

▪ substitution of new generating

capacity by flows from other

countries (displaced mostly coal and

nuclear generation) - more than 38

GW;

▪ savings investments - more than $

50 billion;

▪ savings compensating heating and

pumped storage power plants

capacity for compensating

irregularities of renewable energy –

up to 16 GW.

• A joint study was conducted in the framework of cooperation between Salkovo Institute of science and technology (Skoltech),

EN+ Group (Eurosibenergo) and Korean KEPCO Corporation

• A structure of power grids in North-East Asia with the aim of establishing optimal exchanges of electricity between Russia,

China, DPRK, ROK, Japan was developed

• The study confirmed high efficiency in the formation of interstate energy associations due to appearing synergetic effects of

optimizing the integrated power systems

Perspective power grids structure in North-East Asia Some systemic effects resulting in the

formation of Interstate interconnected power

systems in the North-East Asia

RUSSIA

JAPAN

CHINA

MONGOLIA

NORTH

KOREA

SOUTH

KOREA

The main present drivers of power cooperation in NEA

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• Trends in national economics in different countries of NEA form the roles of these

countries in power cooperation:

- Russia – power supplier

- China – power consumer/supplier

- Korea – power consumer

- Japan – power consumer

- Mongolia – power consumer/supplier

• The Paris climate agreement and carbon emissions reduction – form a

sustainable growing demand for ecologically clean energy and active reducing

polluting power production technologies (coal and oil fired power)

Opportunities for power supply from Siberia to NEA

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Far East

power

system

2-5 GW existed

power capacity

can be as

surplus

Siberia

power

system

To MongoliaTo North

China

Vitim river

hydro power

complex - up to

5,5 GW new

green power

capacity

To Mongolia

(Shivee Ovoo)

To China

(Beijing)

Option 1. Opportunities for existed power capacity Option 2. Opportunities for new constructed Hydro power plants

• Demands making demand-supply balance

investigations in Siberia power system

• Allows to implement joint operation of power systems

of Russia and China and Mongolia in bilateral transfer

of energy

• Does not demand new power construction

• Demands making a feasibility studies of new hydro power

plants in Siberia

• Is suitable for compensating irregularities of wind power

• Demands new power construction

• Allows to supply fully clean green energy

Integration of power supply from Russia in NEA

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WeihaiIncheon

Goseong Matsue

Mogocha

Chita

Shivee-Ovoo

Hanhai

China HVAC-HVDC grid

Korea HVAC grid

In March 2016 4-sides agreement between Softbank (Japan), SGCC (China), KEPCO (Korea) and Rosseti (Russia) was

concluded in power cooperation development in North-East Asia. The project of power delivery to Japan up to 2GW by 2020

was the first initiative within the agreement pushed by Softbank.

The options of power supply from Siberian regions of Russia to Mongolia and China together with ways of power delivery from

Far East of Russia to China can be considered as the fastest opportunity of power supply to Japan by 2020 which doesn’t

require any new power generation construction (especially coal fired). It could be realized as a joint project within the 4-sides

cooperation agreement

Blagoveschensk

Using wind power within present GEI concept

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b) Power transmission from Kara

sea to Northeast Asia in the medium

and long term

a) Power transmission plan from

Kara sea to Europe in the short and

medium term

GEI concept mainly considers wind potential of extremely north (polar) regions of Russia due to favor wind

conditions of these places

The Northeast (polar) regions of Russia are very little populated, difficult for access, doesn’t have almost any

infrastructure

Location GW wind farms in north regions of Russia demands construction of high voltage power lines with long

distance of transferring produced power to Asia and Europe

Real development the GW wind farms in the Northeast (polar) regions of Russia seems to be possible only for

very long time perspectives (more 30-50 years)

Potential alternative places for developing GW wind power projects

in the frame of GEI initiative

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• Alternative places in Krasnoyarsky, Zabaikalsky, Primorsky regions and Kola Peninsula are located closer to Asian and

European power markets, demand significantly less transmittion capacity for collecting and transferring produced power

• These places can be considered for cooperation in short and medium terms

EuroSibEnergo Group

+7-495-720-50-85

www.eurosib.ru

Thank you!