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By:
Rahul Kumar
Khusen Dyshekov
Sourabh Mehto
An in depth and accurate project for SFEL on the Russian
Power Generation In...
International Consultancy Project
2 | P a g e
Table of Contents
Executive Summary............................................
International Consultancy Project
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CHALLENGES FOR FORGE MASTERS ..................................................
International Consultancy Project
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Executive Summary
The report has been prepared on behalf of Sheffield Forger...
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Introduction
Power Generation is one of the key strategic industries in Russ...
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2005 to 640.634bn cubic metres, while exports increased by 8.04% to 152.478b...
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The above companies operate in different regions and some of them are subsid...
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the cost of generating one kWh of energy, according to all interviewed exper...
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The main methods of electricity production in Russia
Today, to supply the gr...
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the second in Europe in terms of energy by nuclear power generation, second...
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built 35-38 large power units, in the next ten years we plan 30-32. Tremend...
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HPS can be divided into two main groups: large hydropower plants on lowland...
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(APBE) suggest that by 2015 the need for new capacities will be 28 GW by 20...
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Key macroeconomic conditions In line with the expectations of the Ministry ...
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Major Players in Russian Power Generation Industry
Rosatom Nuclear Energy S...
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Hydraulic generators
Direct current electric
device and complete
devices
St...
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Products
Hydro-generators
Electric Motors
Hybrid Drive
Electromechanical mo...
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Products:
Equipment for mining, metallurgy and construction industry
Wet au...
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Hydraulic shock absorbers
Vibration dampers
Other equipments
Equipment for ...
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oRepair and modernization of hydro-generators
oRepair and modernization of ...
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Large-size electric machines
Mills
Motor-Barrels, conveyor
Excavators
Crush...
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Capacity
The plant is strategically significant for Ukraine since more than...
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DEMANDS OF HEAVY FORGING IN RUSSIA
The Russian government began reforming t...
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 They plan to increase capacity by 40.9 M watts in the coming four years. ...
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used. Some non-nuclear generators have been privatised. Some TGK companies
...
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Present nuclear capacity
Russia's nuclear plants, with 31 operating reactor...
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In April 2007 the government approved in principle a construction program t...
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Heavy engineering and turbine generators
From 2011, the main reactor compon...
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At the same time, in terms of hydropower resources economic potential Russi...
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 New investment in major forges and steelmaking lines is dependent on actu...
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Plant Reactor Type MWe Status, Start Construction
Commercial
operation
Rost...
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Plant Reactor Type MWe Status, Start Construction
Commercial
operation
Kurs...
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CHALLENGES FOR FORGE MASTERS
Sheffield Forge Master has to face many challe...
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In mid-2009 Izhora commissioned a furnace complex enabling production of 60...
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AEM is also considering developing its own capacity to make VVER pressure v...
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pressure vessel is 13 metres in diameter, and a unique 16-meter rotary-tabl...
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Russia currently has a total installed capacity of 224,541 MW with nuclear ...
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References
Creative Commons, Report on Power generations sectors in Russia,...
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Nuclear Industry Association (2010). Manufacturing a Nuclear Future: The UK...
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Russian Power Generation Industry

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Transcript of "Russian Power Generation Industry"

  1. 1. By: Rahul Kumar Khusen Dyshekov Sourabh Mehto An in depth and accurate project for SFEL on the Russian Power Generation Industry. INTERNATIONAL CONSULTANCY PROJECT
  2. 2. International Consultancy Project 2 | P a g e Table of Contents Executive Summary....................................................................................................................4 Introduction ...............................................................................................................................5 Sectors....................................................................................................................................5 Coal and mines .................................................................................................................5 Electric power...................................................................................................................5 Natural Gas.......................................................................................................................5 Nuclear Energy..................................................................................................................6 Oil......................................................................................................................................6 The demand for electricity in Russia..........................................................................................7 Structure of electricity consumption.........................................................................................8 The main methods of electricity production in Russia ..........................................................9 Main Power generation methods.....................................................................................9 Nuclear power ..................................................................................................................9 The thermal power plants ..............................................................................................11 Hydropower....................................................................................................................11 Forecasts of production and consumption..............................................................................12 Major Players in Russian Power Generation Industry.............................................................15 Main Competitors ................................................................................................................15 DEMANDS OF HEAVY FORGING IN RUSSIA..............................................................................23 RAO UES (Russian Open Stock Company Unified Energy System),......................................23 Electricity supply in Russia.......................................................................................................24 DEMANDS IN RUSSIAN NUCLEAR SECTOR: ..........................................................................25 Present nuclear capacity..........................................................................................................26 Life extension, upgrades and completing construction.......................................................26 Building new nuclear capacity..............................................................................................26 DEMANDS IN RUSSIAN HYDRO SECTOR:..............................................................................28 Heavy Manufacturing of Power Plants ................................................................................29 Major Power Reactors under Construction, Planned and officially proposed...............30
  3. 3. International Consultancy Project 3 | P a g e CHALLENGES FOR FORGE MASTERS ........................................................................................33 Opportunities...........................................................................................................................36 STRATEGIES/RECOMMENDATIONS FOR FORGEMASTERS ......................................................37
  4. 4. International Consultancy Project 4 | P a g e Executive Summary The report has been prepared on behalf of Sheffield Forgermasters Engineering Limited to give an overview about the Russian Power Generation Industry, it emphasize on the methods of power generation, the ongoing and proposed power project in Russia, the main sources for generating power in Russia. The project also includes the analysis of current power demands and the past trend in Russia. The main requirement of this research project, thus, is to provide a strategic and dynamic approach, to follow and accomplish the plan that would strengthen the present business of Forge Master and this would help them to enter in new markets like Russia. The report will include Market Screening Demand and past trends Strategic direction Recommendation for SFEL The study also provides a brief profile of the major players in the power generation strategy and their market share, the main products and services provided by them. The project will also help to formulate a strategy for Sheffield Forgemasters to enter in Russian Power Industry with a sound knowledge of its competitors and potential business customers and how Sheffield Forgemasters can have a competitive advantage over its competitors.
  5. 5. International Consultancy Project 5 | P a g e Introduction Power Generation is one of the key strategic industries in Russia and it consists of many world leading companies in power generation. There are different regions and sectors in which they operate. Sectors Coal and mines In 2000s large private operators appeared in the coal market – mainly as the result of M&A activities with steel-makers, needed coking coal own sources. Currently 20 leaders provide 91% of Russia’s coal production – with SUEK providing 38% in thermal coal production and Evraz Group 31% in coking coal. Since the early 2000s Russia benefits the status of coal net-exporter – buying 18.8 mt of Kazakh coal Russia exported 98 mt of coal in 2009. Russia became the world’s # 3 coal exporter (after Australia and Indonesia) – with approximately 11% in global coal trade. Prior to 2009 Russia’s coal export was oriented mainly EU – with 73.4% share. But following market drop in Europe the western route of Russian coal export became less and less attractive. Meanwhile the demand in APAC continued to grow – even in crisis period; 2009 became the time when several Russian coal tycoons began to shift export interests from EU to Asia-Pacific Electric power Russia is the fourth largest generator of electricity, after the USA, China, and Japan. Roughly 63% of Russia's electricity is generated by thermal plants, 21% by hydropower and 16% comes from nuclear reactors. Russia exports significant quantities of electricity to the countries of the former Soviet Union, as well as to China, Poland, Turkey and Finland. Natural Gas Russia has the world's largest proven natural gas reserves - though these are largely undeveloped - and significant oil reserves. The gas sector in Russia is dominated by state-owned company Gazprom. Production of natural gas increased by 1.13% in
  6. 6. International Consultancy Project 6 | P a g e 2005 to 640.634bn cubic metres, while exports increased by 8.04% to 152.478bn cubic metres. The recent gas dispute with Ukraine has caused concern that Russia is trying to use its role as a major gas exporter as a means of securing influence or pursuing its own geopolitical goals in neighbouring countries. Nuclear Energy After a 20-year lull following the Chernobyl disaster, Russia announced ambitious plans for new nuclear facilities. Russia is set to increase the proportion of its energy that is nuclear-generated from the current 16% to 25% by 2030 and build at least 40 new reactors. Costs are estimated at $60bn. Russia currently has 31 reactors at 10 plants and is building three more at home and another five abroad, including the controversial site at Bushehr in Iran. Oil Oil production grew by 2.7% in 2005 to 9.44m barrels per day (bpd). During the same period, oil majors increased refining by over 10 per cent to above 4m bpd. Russia exports around 5m bpd of crude oil and 100m tonnes of refined products. Power Generation Companies in Russia 1 Arktikugol Coal 16 Rosenergoatom Nuclear 2 Coal Company Zarechnaya Coal 17 Atomenergoprom Nuclear 3 Mechel Coal 18 Bashkirenergo Power 4 Raspadskaya Coal 19 Enel OGK-5 Power 5 Siberian Coal Energy Company Coal 20 Inter RAO Power 6 SIBPLAZ Coal 21 Kuzbassenergo Power 7 FGC UES Elect. Tras. 22 OGK-1 Power 8 Novosibirskenergo Electricity 23 OGK-2 Power 9 RAO UES Electricity 24 OGK-4 Power 10 Hydroproject Hydro 25 OGK-6 Power 11 Irkutskenergo Hydro 26 TGC-1 Power 12 Lenhydroproject Hydro 27 WGC-3 Power 13 RusHydro Hydro 28 Astrakhanenergo Thermal 14 Natural Gas 29 Mosenergo Thermal 15 Lukoil Natural Gas 30 Rosatom Source: Creative Commons
  7. 7. International Consultancy Project 7 | P a g e The above companies operate in different regions and some of them are subsidiaries of major players. After being liberalized from state regulation, the private players became more active and competitive in power generation. The demand for electricity in Russia Growth in electricity demand in 2011 was on average 1.5%. In the month of August the demand increased by 1.8%, but in the last quarter was marked by the decline in consumption. In early November the demand for electricity in Russia grew by only 1.5% over the same period last year, despite the colder autumn. Thus, the country first set on a downward path of consumption in the industry in October. The reason lies in the deterioration of the situation on the world metal market: because of lower prices steelmakers cut production. The industry in fact indicated a drop in demand for energy: this year's first week of November was much colder than last year. The national average temperature was 5.8 degrees lower than in the European part, in Ural - 8.2 degrees and in Siberia - 3.2 degrees. Standard cooling by 1 degree gives the increase in demand of 1.1% due to housing patterns, the analyst said, "VTB Capital" Michael Rasstrigin. When you save a proportion of overall demand in all sectors year to year would grow by at least 6%. The calculations are rather relative, warns Mr. Rasstrigin, but reducing consumption in the industry is clear - industrialists gleaning about 4.4% of energy. Drop in consumption in the industry - the continuation of the trends emerged in October, when the temperature was at last year's level. In the previous month, the demand for the whole country fell by 0.9%, says Deutsche Bank analyst Dmitry Bulgakov. The main reason - reducing demand, especially from steel companies, says Mr. Bulgakov. Unlike oil and gas cluster, where capacity utilization is not strongly dependent on world prices for hydrocarbons, metallurgical sector is more susceptible to market conditions, which affect the volume of production. Reduced load capacity of steel has a significant impact on energy consumption in Russia. Against this background, in early November, there was a sizeable drop in electricity prices in the free market: the first price drop zone for the week of 4-10 November was 3.2%, in Siberia - 15.2%. The fall in prices due to the planned load thermal power plants, reducing
  8. 8. International Consultancy Project 8 | P a g e the cost of generating one kWh of energy, according to all interviewed experts. Electricity consumption in 2005 amounted to 935 billion kW / h. There was an upward trend in the demand pattern for electricity during the period. Electricity consumption in 2009 in Russia as a whole amounted to 964.4 billion kW • h, that is 4.6% less than the amount of electricity consumed in 2008 in consequence of the economic crisis. But next year, and demand out to pre-crisis period. Electricity production in Russia in 2010 amounted to 1038.0 billion kw / h, which is 4,4% higher than in 2009. Powerhouse UES of Russia worked out 1004.3 billion kw/h (4.6% more than in 2009). Consumption amounted to 1021 billion kW/h. The main burden for the electricity demand in the UES of Russia in 2010 brought thermal power plants (CHP) production which amounted to 620.8 billion kw / h, which is 7,6% more than in 2009. The development of hydropower in 2010 decreased by 4.8% compared with 2009 and amounted to 158.03 billion kilowatt / hours NPP in 2010 produced 169.97 billion kW / h, which is 4.2% more than electricity generated in 2009. Power plant industry in 2010 developed a 55.6 billion kw / h (2.2% more than in 2009). Structure of electricity consumption Industry - the main consumer of electricity in Russia - will continue to grow in 011.However, in 2011is expected quite a sizeable reduction in the rate of growth of industrial production - up to 3.5-3.8% compared with a jump of 8.3% last year, largely due to the production of active restoration of enterprises engaged in the production minerals, and manufacturing production facilities.
  9. 9. International Consultancy Project 9 | P a g e The main methods of electricity production in Russia Today, to supply the growing demand for electricity Government of Russia has developed a Master Plan for location of energy facilities, according to which by 2020 it is planned to commission a total of 32.3 GW of installed nuclear capacity, 25.9 GW of installed capacity of hydropower, 53.9 GW - TES coal-fired and 74 GW - TES on gas. Taken together, the share of thermal power plants accounts for 68.7% of all input installed capacity. Main Power generation methods Nuclear power Today in Russia there operate 10 nuclear power plants (a total of 32 power installed capacity of 24.2 GW), which generate about 16% of all electricity produced. In the European part of Russia, the share of nuclear power reaches 30%, and the North West - 37%. Organizationally, all nuclear power plants are branches of JSC "Concern" Rosenergoatom "(part controlled by the State Corporation" Rosatom "OAO" Atomenergoprom "), which is 23% 22% 55% Services and households Other (sales, transport, agricult ure) 68 11 21 Termal Nuclear Hydro
  10. 10. International Consultancy Project 10 | P a g e the second in Europe in terms of energy by nuclear power generation, second only to the French EDF, and the first volume of generation within the country. Russian nuclear power plants are making a significant contribution to the fight against global warming. Through their work annually there emissions into the atmosphere 210 million tons of carbon dioxide are prevented. Overall, the global nuclear industry prevents 3.4 billion tons of CO2: 900 million tons in the U.S., 1.2 billion tons - in Europe, 440 million tons - in Japan, 90 million tons - in China. The priority is the safety of nuclear power plants. Since 2004, the Russian nuclear power plants have been recorded no serious breach of security, classified according to the international INES scale greater than zero (minimum) level. Steadily declining number of unplanned outages of nuclear power plant shutdowns and unscheduled network of reactors – by this indicator Rosenergoatom is the second largest in the world, surpassing the United States, Britain and France. Radiation background in the vicinity of nuclear power does not exceed the established standards and complies with the natural values typical for the respective areas. An important task in the field of operation of Russian nuclear power plants is to increase the capacity factor (load factor) at already working stations. To solve the first problem "Concern" Rosenergoatom " has developed a special program to improve load factor, calculated up to 2015. As a result, its performance will be obtained an effect equivalent to commissioning of four new nuclear power units (equivalent to 4.5 GW of installed capacity). In 2006 -2008 years due to the fact that the load factor rose from 76% to 80.9%, there was achieved substaintial growth in output. At present, Russia is a large-scale construction site of new nuclear power plants. Last year, construction began on the first blocks Novovoronezh-2 and Leningrad NPP-2. In July 2008, there started excavation under the second block of Novovoronezh-2. In the stage of completion are still three units: the second in Rostov (Volgodonsk) NPP, the fourth - the Beloyarsk NPP and the fourth - at the Kalinin plant. Abroad by building nuclear power plants "Kudankulam" (India), "Busher" (Iran) and the "Belene" (Bulgaria). In the next ten years Russia plans to build 30-32 units, said the head of the Russian government in the direct line of communication with citizens, "Conversation with Vladimir Putin. Continued," says RBC. "If during the Soviet era all over the decade there were
  11. 11. International Consultancy Project 11 | P a g e built 35-38 large power units, in the next ten years we plan 30-32. Tremendous amount," – said Vladimir Putin. "We have big plans to develop nuclear energy," - said the prime minister. According to him, this means the company "Rosatom" is additionally supported by its government. The thermal power plants Approx 68% of all electricity is produced in the Russian thermal power plants. This is the primary power in Russia. Among them the main role is played by the powerful (more than 2 million kW) power plant - the state district power plant to ensure the needs of the economic region, working in power systems. Most cities in Russia are supplied just TPP. Often used in urban CHP - combined heat and power, producing not only electricity but also heat in the form of hot water. Such a system is quite impractical because unlike electric cable reliability of heat is very low at large distances, the efficiency of district heating strongly in the transmission is also reduced. It is estimated that the extent of heating more than 20 km (a typical situation for most cities) electric boiler installation in separately standing house is economically advantageous. Accommodation of thermal power plants has a major impact and fuel consumption factors. The most powerful thermal power plants are located in areas of fuel production. Thermal power stations using native species of fuels (peat, shale, low- calorie coal) are geared to the consumer and at the same time are a source of fuel resources. Large thermal power plants are coal power plants in Kansk-Achinsk, Berezovskaya GRES-1 and GRES-2. Surgut GRES-2, Urengoy SDP (using gas). Hydropower Modern hydroelectric allows up to 7 million kilowatts of energy, two higher than that currently in thermal and nuclear power plants, but the location of power plants in the European part of Russia is difficult because of high cost of land and the inability to reach large areas in the region. The most powerful hydroelectric power station was built in Siberia, where hydropower is developed most effectively.
  12. 12. International Consultancy Project 12 | P a g e HPS can be divided into two main groups: large hydropower plants on lowland rivers and hydroelectric power stations on mountain rivers. In our country most of the hydroelectric power stations were constructed on the rivers of the plains. The plains reservoirs are usually large in size and consequently change environmental conditions over large areas Deteriorating sanitary condition of water bodies. The construction of pumped storage power stations – PSP – is very promising. Their action is based on the cyclical movement of the same volume of water between two pools: the top and bottom. At night, when electricity demand is low, water is pumped from the lower reservoir in the upper basin, while consuming excess energy produced by plants at night .In the afternoon, when electricity demand increases rapidly, the water is discharged from the upper basin down through turbines, generating that energy. This is advantageous because to stop TPP at night is impossible. Thus, the PSP can solve the problems of peak loads. In Russia, especially in the European part of the acute problem of maneuvering a power plant, including the PSP (as well as the University, NTU). Zagorsk PSPP constructed (1, 2 million kW), based Central PSP (2.6 million kW). An important drawback of HPS is the seasonality of their work, so it is inconvenient for the industry. The main problem of the whole system and the electricity industry - it is wear and tear. Of particular concern inspires Russian state hydro, 20.9% of the power which worked more than 50 let.Otrabotali a standard period of 53% of the turbines, generators, 52.5%, 40% of the transformers. The average wear and tear on hydropower exceeds 40%, and in some cases - 70%. Most of the equipment, spent their regulatory useful life, the Volga-Kama cascade of hydro-power stations and the North Caucasus. Alternative methods of producing electricity. At the moment, the share of alternative sources is about 0.1% of the total output of the generating systems. Forecasts of production and consumption Russia's economic growth will contribute to the restoration of power in Russia, on the one hand stimulating the production of electricity and heat, and, consequently, earnings of energy companies, but on the other hand, due to unavoidable costs increases, increasing the gap between effective and ineffective-market participants.
  13. 13. International Consultancy Project 13 | P a g e (APBE) suggest that by 2015 the need for new capacities will be 28 GW by 2020 to 76 GW, and this despite the fact that the growth rate of electricity consumption have been significantly adjusted, from 4.1% annual growth inherent in the investment program of RAO UES to 2-3% in the adjusted version of the 2010 general scheme. The total amount of required installed capacity is 234 GW in 2015 and 275 GW in 2020, it is assumed that in the next five years against the backdrop of the dismantling of obsolete equipment capacity of existing power plants will decrease by 5 GW to 206 GW in 2020 - 12 GW to 199 GW. The five-year investment program aimed at the needs of advanced input power capacity: for example, for the period 2010-2015 expected to be operational 41.3 GW of new capacity, and in 2020 - 79.9 GW According to the Government's Energy Strategy of Russia up to 2030, electricity production in Russia in 2030 will be about 1,8-2,21 trillion kW • h / year (2 times more than in 2008). Electricity generation plant will be 356-437 billion kW • h (2.7-fold increase), from renewable energy sources (RES) will be 319-422 billion kW • h (an increase of 2.52 times), CHP - 478-505 billion kW • h (up to 31%). In the structure of electricity generation by 2030 nuclear power plant will be 19.8% (15.7% in 2008) of renewable energy - 19.1% (16.1% in 2008), HPP - 28.1 % (37.1% in 2008). Installed capacity by 2030 will grow almost 2 times and will be 355-445 GW nuclear power plant - 52-62 gigawatts (up to 3 times), based on renewable energy sources (hydro, solar, tidal and wind power) - 91-129 GW (an increase of 2.7 times), CHP - 106-112 GW (up 31%). The volume of investments in power until 2030 will be 572-888 billion dollars in 2010 prices.
  14. 14. International Consultancy Project 14 | P a g e Key macroeconomic conditions In line with the expectations of the Ministry of Economic Development, GDP growth in Russia in 2011, were 4.2% vs. 2.5% in 2010, and the growth rate of industrial production - 3.9% vs. 8.3% expected in 2010. One of the main factors contributing to the restoration of the Russian economy, should be rising oil prices, the official government forecast on which the next three years is in the range of $ 65-70 per barrel. However, based on futures on crude oil Brent, quote, "black gold", taking into account, the accumulated financial system liquidity, will not fall below $ 90, on the one hand stimulating the growth of Russian economy, on the other - helping to disperse the global inflation, particularly on energy and Commodities. At the same time provides for repair 57% of all existing generation capacity. For a more economical use of building power plants in Russia they created the Unified Energy System (UES), which includes more than 700 large power plants, which are concentrated in 84% of the country's generating capacity. United Energy Systems (UES) of the Northwest, Center, Volga, Southern, Northern Caucasus, the Urals, they are in the EEC of the European part of Russia are established and operated. All power systems are interconnected with high-voltage connections. Advantages of the system are in alignment EEC daily schedules of electricity consumption, including through its successive flowing between time zones, improving the economic performance of power plants, creating conditions for the complete electrification of the area and the entire economy. Russia needs to expedite development of the power: increasing the volume of electricity generated. Increasing volumes of new power plants and increase in capacity of existing power plants will occur, in particular, by increasing the unit capacity and efficiency, energy- producing units. In Russia today there are more than 80 power plants with capacity of 1 million kilowatts or more, which is 60% power capacity of the country.
  15. 15. International Consultancy Project 15 | P a g e Major Players in Russian Power Generation Industry Rosatom Nuclear Energy State Corporation is a State Holding Corporation. It is also the Regulatory body of the Russian Nuclear complex. In November 2007 the company was transformed into the state corporation from Federal Agency for Atomic Energy. Main Competitors OJSC Power Machines OJSC Power Machines is the leading Russian producer and supplier of end-to-end products and solutions for the power-plant industry, including engineering, production, supply, assembly, service and equipment upgrades for thermal, nuclear, hydraulic and gas-turbine power plants. It is the 4th largest company in the world by volume of installed equipments. Operate in - 57 Countries Combined Capacity - 300,000 MW Equipment Produced- 2700 Steam Turbines 2500 Turbo- Power Generators 700 Hydraulic turbines 600 Hydro power generators Source: Power Machines, 2011 Nowadays Power Machines carries out projects in Russia and CIS, Eastern Europe countries, India, Vietnam, China, South and Latin America countries, the Middle East and Africa countries, etc. The Products/Services Steam turbines Alternating current electric generators Service of TPP, NPP, HPP operating Equipment Gas turbines Electric motors Service at complete equipment supplies Turbo generators Alternating current electric drive and complete devices Engineering
  16. 16. International Consultancy Project 16 | P a g e Hydraulic generators Direct current electric device and complete devices Steam and hydraulic turbines services Excitation system and starting devices Traction electric device Gas Turbines services Hydraulic turbines Generator services Blades for steam and gas turbines Excitation system services New developments The Electro-technical Concern RUSELPROM is one of the largest national manufacturers of generators, hydro-generators and electric motors for a variety of industries; it is a leading scientific and engineering centre for the country’s electrical engineering. The Russian electro-technical Concern RUSELPROM is one of the leaders of the Russian electrical engineering. Market situation The RUSELPROM Concern products take: Up to 35 % of the Russian market for generators and heavy electrical machines (from 1000 kW to 32.5 MW); Up to 50 % of the market for all-purpose asynchronous motors. The RUSELPROM Concern is the only developer and manufacturer of a hybrid drive in the former Soviet Union. The RUSELPROM Concern is the largest supplier of electrical machines in Russia, the second largest (after OJSC Power Machines) manufacturer and supplier of electrical equipment for all branches of industry.
  17. 17. International Consultancy Project 17 | P a g e Products Hydro-generators Electric Motors Hybrid Drive Electromechanical motors Specifications Standard and special synchronous and induction electric machines in an output range from 30 up to 12'000 kW, synchronous diesel generators, hydroelectric generators, turbo-generators in an output range from 1 000 up to 220'000 kW Standard and special induction electric machines in an output range from 0,18 up to 315 kW Standard and special synchronous and induction electric machines in an output range from 30 up to 2'000 kW, synchronous generators in an output range from 125 up to 1'000 kW Source : Ruselprom, 2011 Tyazhmash is one of the leading companies of heavy, power and transport engineering. JSC TYAZHMASH supplies high-quality products for power engineering, ferrous and non-ferrous metallurgy, civil engineering, chemistry and petroleum refining, agriculture, gold-and- diamond mining, defense and the space. 50%50% All purpose asynchronous Ruselprom Other manufactures 35% 65% Generators and heavy electrical machines: Ruselprom Other manufactures
  18. 18. International Consultancy Project 18 | P a g e Products: Equipment for mining, metallurgy and construction industry Wet autogenous mills. Wet semi-autogenous mills Ball mill MSh 25,5х14,5. Mill MS 3,3х12,5. MSTs, MShTs, MShR Mills. Hammer crushers. Roll crushers. Smoke exhausters Belt conveyers: stationary and retractable. Idlers for belt conveyers. Equipment for coal-fired thermal power plants (TPPs) Tangential hammer mills Medium speed roller mills (Bowl mills) Pulverizing fans Ball-tube mills Roller mills of TBM type Flicker devices with cone valve Separators Hydraulic bayonet locks Cyclones Scraper feeders Combined raw coal feeder Screw feeders Pulverized coal stationary blade feeders Sliding gate Steam panel dryer Equipment for hydro power plants (HPPs) Hydraulic turbines for medium and large hydraulic power plants Radial hydraulic turbines for small HPPs Ball locks Sectional plain sliding gates and trashracks Disk gates Equipment for nuclear power plants (NPPs)
  19. 19. International Consultancy Project 19 | P a g e Hydraulic shock absorbers Vibration dampers Other equipments Equipment for industrial oil preparation Tunnel shields Screw pumps of MVN type Overhead cranes Special gearboxes Protective devices of entries, transport doors and air ducts Launching-docking module of «Energy-Buran» system Radio-telescopes and support-rotating mechanisms (SRM) of radar complexes A Tower of 70 m height A Tower of 250 m height Screw pumps of MVN type Steam-turbine condenser ELSIB”, already for more than 50 years, designs and produces the high effective electric and technical equipment. For a half of century period of its activity, “ELSIB” has equipped with the turbo- and hydro-generators more than 700 power plants at the different regions of the planet. More than 60 thousand large electric machines are being operated at all branches of industry of 52 countries of the world. Products Hydro-generators Turbo-generators oAir-cooled turbo-generators oHydrogen-cooled turbo-generators oLiquid-cooled turbo-generators Asynchronous motors oAsynchronous electric motors of general-duty and special-purpose oExplosion-proof asynchronous electric motors Frequency Converters Services
  20. 20. International Consultancy Project 20 | P a g e oRepair and modernization of hydro-generators oRepair and modernization of the turbo-generators oRepair and modernization of electric motors Today the company has half-century experience in the area of designing and manufacturing hydro-generators. The products manufactured are certified, technical solutions and “know- how” are protected with patents. Our hydro-generator construction specialists have more than 130 author's certificates and patents of the Russian Federation. NPO “ELSIB”-produced hydro-generators with capacity of 25 to 300 Mw having revolution rates from 50 to 333 rpm are successfully used for a long time at such HPSs of Russia as: Irkutsk, Bratsk, Saratov, Nizhnekamsk, Cheboksary, Viluysk, Kolyma HPS – more than 30 stations in total. Need from suppliers For a manufacturing of the large electric machines, uses, at the large volumes, a wide range of the materials and completing parts such as: Ferrous metal rolling Non-ferrous metal rolling Electric insulating products Chemicals Rubber and technical products Cables Devices and apparatus of various intention, etc. Rosenergomash is one of the leading Russian electro-mechanical concerns. It has its plants in Ukraine and Russia. Rosenergomash is by right considered to be the most innovative electrical engineering concern. Furthermore, the Concern’s innovative activity is not only limited to design solutions but represents a comprehensive innovative approach to the company’s managerial initiatives. In particular, the Concern offers a brand new approach to cooperation for power engineering and electric engineering enterprises. Products
  21. 21. International Consultancy Project 21 | P a g e Large-size electric machines Mills Motor-Barrels, conveyor Excavators Crushers Asynchronous electric motors Synchronous electric motors Asynchronous electric motors conventional sizes 56-355 Three-phase asynchronous electric motors with squirrel-cage rotor Explosion-proof electric motors Electric Motors of special Purpose Generators Direct-current electric machines Direct-current electric machines of general industrial and special use Marine design electric machines Electric machines for railroad transport Crane-metallurgy electric motors Mining direct current traction electric motors Industrial electric equipment Mining electric equipment Normal resistors The Concern plans to increase its sales by 3-5 times this year given the drastic market growth rate (at 20 - 25% per year). “Electrtotyazhmash” is the leading enterprise of Ukraine on development and production of turbine and hydrogenerators, heavy electric DC machines for different branches of national economy, set electrical equipment for diesel locomotives, electric locomotives, diesel trains, heavy-weight dump trucks, trams, trolley-buses and equipment for diesel power plants.
  22. 22. International Consultancy Project 22 | P a g e Capacity The plant is strategically significant for Ukraine since more than 80% of capacities of Ukrainian power stations are equipped with the turbo- and hydrogenerators bearing the mark of the plant as well as those of Russia, Belorussia, Kazakstan, Lithuania and other countries.The products with brand “Electrtotyazhmash” are successfully operated in over than 40 countries of the world. Products The enterprise is in close contact with the customers of the equipment, systematically analyze and summarize the experience of its operation. The plant renders technical support to the customer's specialists who, if they wish, take part in stand testings of unique machines. In order to provide maximum reliability all electric machines are subjected to operation-by-operation tests, careful control at all stages of production. Synchronous machines oTurbogenerators oHydrogenerators DC big electrical machines oDС electrical motors oDC generators Traction electric equipment oTraction units oElectrical motors oTraction generators oAuxiliary electrical machines oElectrical Apparatus Services oTesting center oNon-ferous and ferous metals
  23. 23. International Consultancy Project 23 | P a g e DEMANDS OF HEAVY FORGING IN RUSSIA The Russian government began reforming the power generation industry. The main goal was, and remains, to upgrade the aging and out-dated heating and electricity infrastructure. Russia’s primary energy demand is projected to grow at 0.7 per cent per year over the outlook period; buoyed mainly by increasing demand for oil and gas in the industry and transport sectors. The demand for heavy forgings is forecast to triple by 2020 to 70,000 tons, with worldwide supply capacity only able to fulfill 59,000 tons in that period. A 2009 report by Frost & Sullivan highlighted the disparity between supply and demand. The main downside of an increase in nuclear projects concerned the availability of heavy equipment and long lead times. The majority of equipment for new generation plants currently comes from international suppliers and nuclear-related entities which are working at full capacity. RAO UES (Russian Open Stock Company Unified Energy System),  The national utility company set a target to raise $118 billion in five years. To meet this goal, it has to attract foreign investment. RAO UES closed its doors as a holding company in 2008, with much of its power generation assets privatized. Russia now finds itself needing to modernize a large portion of its power generation facilities and RAO UES hopes to attract more than $100 billion investment in the industry in the next five years.
  24. 24. International Consultancy Project 24 | P a g e  They plan to increase capacity by 40.9 M watts in the coming four years. RAO UES estimates it needs 100 gas and 67 steam turbines, 125 waste heat boilers and about 70 turbines for coal-fired stations. It is quite likely that purchase orders for power generation equipment may grow to tens of billions of dollars. According to industry sources, last year local manufacturers produced only $2 billion worth of this equipment type, creating a promising market for foreign vendors. Electricity supply in Russia Russia's electricity supply, formerly centrally controlled by RAO Unified Energy System (UES) faces a number of acute constraints. Electricity production reached 1015 billion kWh in 2007, with 160 billion kWh (16%) coming from nuclear power, 487 TWh (48%) from gas, 170 TWh (17%) from coal and 179 TWh (18%) from hydro. In 2007 net export was 13 TWh and final consumption was 701 TWh (after transmission losses of 105 and own use/ energy sector use of 194 TWh). Nuclear capacity is about 10% of total 211 GWe.  First, demand is rising strongly after more than a decade of stagnation.  Secondly, some 50 GWe of generating plant more than a quarter of it in the European part of Russia has come to the end of its design life.  Thirdly, Gazprom has cut back on the very high level of natural gas supplies for electricity generation because it can make about five times as much money by exporting the gas to the west (27% of EU gas comes from Russia).  Fourthly, it predicted a possible doubling of generation capacity from 225 GWe in 2008 to 355-445 GWe in 2030.  Fifthly, new investment by 2030 of RUR 9800 billion in power plants and RUR 10,200 billion in transmission will be required. UES' gas-fired plants burned about 60% of the gas marketed in Russia by Gazprom, and it is aimed to halve this by 2020. Also, by 2020, the Western Siberian gas fields will be so depleted that they supply only a tenth of current Russian output, compared with nearly three quarters now. Also there are major regional grid constraints so that a significant proportion of the capacity of some plants cannot be
  25. 25. International Consultancy Project 25 | P a g e used. Some non-nuclear generators have been privatised. Some TGK companies (also supplying heat) are private, others such as TGK-3 are owned by Gazprom. Source :http://www.world-nuclear.org DEMANDS IN RUSSIAN NUCLEAR SECTOR: Russia is moving steadily forward with plans for much expanded role of nuclear energy, nearly doubling output by 2020. Efficiency of nuclear generation in Russia has increased dramatically since the mid-1990s. Exports of nuclear goods and services are a major Russian policy and economic objective. Russia is a world leader in fast neutron reactor technology. In 2009 nuclear production was 163.3 billion kWh. In 2010 it was 170.1 billion kWh, 16.6% of Russia's electricity. Nuclear electricity output has risen strongly due simply to better performance of the nuclear plants, with capacity factors leaping from 56% to 76% 1998- 2003 and then on to 80.2% in 2009. Rosenergoatom aims for 90% capacity factor by 2015. In gross terms, output is projected to grow from about 150 billion kWh in 2005 to 239 billion kWh in 2016 (18.6% of total). Nuclear generating capacity is planned to grow some 50% from 24.2 GWe gross (22.8 net) in 2010 to 35 GWe in 2016, and at least double to 51 GWe by 2020. In 2006 Rosatom announced a target of nuclear providing 23% of electricity by 2020 and 25% by 2030.
  26. 26. International Consultancy Project 26 | P a g e Present nuclear capacity Russia's nuclear plants, with 31 operating reactors totalling 21,743 MWe, comprise: 4 first generation VVER-440/230 or similar pressurised water reactors, 2 second generation VVER-440/213 pressurised water reactors, 11 third generation VVER-1000 pressurised water reactors with a full containment structure, mostly V-320 types, 11 RBMK light water graphite reactors now unique to Russia. The four oldest of these were commissioned in the 1970s at Kursk and Leningrad and are of some concern to the Western world. A further Kursk unit is under construction. 4 small graphite-moderated BWR reactors in eastern Siberia, constructed in the 1970s for cogeneration (EGP-6 models on linked map). One BN-600 fast-breeder reactor. Life extension, upgrades and completing construction Generally, Russian reactors are licensed for 30 years from first power. Late in 2000, plans were announced for lifetime extensions of twelve first-generation reactors totalling 5.7 GWe, and the extension period predicted is now 15 to 25 years, requiring major investment in refurbishing them. Generally the VVER-440 and RBMK units will get 15-year life extensions and the nine VVER-1000 units 25 years. To 2010, 15-year extensions had been achieved for Novovoronezh-3 & 4, Kursk-1 & 2, Kola-1 & 2 and Leningrad-1-3. Bilibino 1-4 have also been given 15-year licence extensions. Building new nuclear capacity In September 2006 Rosatom announced a target of nuclear providing 23% of electricity by 2020, thus commissioning two 1200 MWe plants per year from 2011 to 2014 and then three per year until 2020 - some 31 GWe and giving some 44,000 MWe of nuclear capacity then.
  27. 27. International Consultancy Project 27 | P a g e In April 2007 the government approved in principle a construction program to 2020 for electricity-generating plants. It was designed to maximise the share of electricity from nuclear, coal, and hydro, while reducing that from gas. This envisaged starting up one nuclear power unit per year from 2009, two from 2012, three from 2015 and four from 2016. Present nuclear capacity would increase at least 2.3 times by 2020. Source: World Nuclear Organization, 2011 Russia was focused on four elements Serial construction of AES-2006 units, with increased service life to 60 years. Fast breeder BN-800. Small and medium reactors - KLT-40 and VBER-300. High temperature reactors (HTR).
  28. 28. International Consultancy Project 28 | P a g e Heavy engineering and turbine generators From 2011, the main reactor component supplier is OMZ's is doubling their production of large forgings for manufacturing three to four pressure vessels per year. Turbine generators for the new plants are mainly from Power Machines subsidiary LMZ, which has six orders for high-speed 3000 rpm turbines: four of 1200 MWe for Novovoronezh and Leningrad, plus smaller ones for Kalinin and Beloyarsk. The company plans also to offer 1200 MWe low-speed (1500 rpm) turbines from 2014, and is investing RUB 6 billion in a factory near St Petersburg to produce these. Silmash is 26% owned by Siemens. Alstom Atomenergomash is a joint venture between French turbine manufacturer Alstom and Atomenergomash, an AEP subsidiary, which will produce low-speed turbine generators based on Alstom's Arabelle design, sized from 1200 to 1700 MWe. DEMANDS IN RUSSIAN HYDRO SECTOR: Russia is greatly increasing its hydro-electric capacity Russia is aiming to increase by 60% to 2020 and double it by 2030. Hydro OGK is planning to commission 5 GWe by 2011. The 3GWe Boguchanskaya plant in Siberia is being developed in collaboration with Rusal, for aluminium smelting. The aim is to have almost half of Russia's electricity from nuclear and hydro by 2030. Source: World Nuclear Organization, 2011 Russia now has 102 hydropower plants in operation, with a capacity of over 100 MW. The total installed capacity of HPP turbo generator units in Russia today amounts to approximately 45 million kW (5th place in the world), with an output in the order of 165 billion kWh/year (also 5th place) – while HPP account for no more than 21% of Russia’s total electric power production.
  29. 29. International Consultancy Project 29 | P a g e At the same time, in terms of hydropower resources economic potential Russia takes second place in the world (about 852 billion kWh, after China), but in terms of the degree of their development 20% it is way behind virtually all the developed countries and even many developing ones. The equipment of most Russian hydro-plants is over 40% obsolete and for some HPPs, this figure reaches 70%, this being connected with the system-wide problem of the entire hydropower industry of the last fifteen years. Heavy Manufacturing of Power Plants There is increase in demand of heavy forging in Russia due to following reason  A critical issue for accelerating nuclear power plant construction is the availability of heavy engineering plants to make the reactor components, especially for those units of more than 1100 MWe.  The supply challenge is not confined to the heavy forgings for reactor pressure vessels, steam turbines and generators, but extends to other engineered components.  As with other generation technologies, supply constraints plus escalating steel and energy prices flow on to plant costs.
  30. 30. International Consultancy Project 30 | P a g e  New investment in major forges and steelmaking lines is dependent on actual orders rather than simply uncommitted plans or vague proposals.  For very large generation 3+ reactors, production of the pressure vessel requires, or is best undertaken by, forging presses of about 140-150 MN (14-15,000 tonnes) capacity which accept hot steel ingots of 500-600 tonnes.  Reactor vendors prefer large forgings to be integral, as single products, but it is possible to use split forgings which are welded together. These welds then need checking through the life of the plant. Also, whereas Generation II reactors might require some 2000 tonnes of forgings, EPR and AP1000 units require about twice the amount.  A further issue emerging with manufacturing is metallurgy. Generation III+ plants can use existing metal alloys, but Gen IV plants operating at higher temperatures will require new materials, which will need a long lead time to develop. At 700ºC degradation problems are much more severe than at today's operating temperatures.  Large nuclear power plants 1,000MWe+ usually has low-speed (1500 rpm) turbines, such as Alstom's Arabelle, which are more reliable and efficient. The generators however are heavier than those with the 3000 rpm turbine, and the price is also higher. Major Power Reactors under Construction, Planned and officially proposed Plant Reactor Type MWe Status, Start Construction Commercial operation Vilyuchinsk FNPP KLT-40S 40 x 2 Const 5/09 2014 Beloyarsk 4 BN-800 FBR 880 Const 2014 Novovoronezh II -1 VVER 1200/ V-392M 1200 Const 6/08 2012 Leningrad II-1 VVER 1200/ V-491 1200 Const 10/08 10/2013 Novovoronezh II -2 VVER 1200/ V-392M 1200 Const 7/09 2016
  31. 31. International Consultancy Project 31 | P a g e Plant Reactor Type MWe Status, Start Construction Commercial operation Rostov 3 VVER 1000/ V-320 1100 Const 1983, resumed 9/09 2014 Leningrad II -2 VVER 1200/ V-491 1200 Const 4/10 2016 Rostov 4 VVER 1000/ V-320 1100 Const 1983, first new concrete 6/10 2016 Subtotal of 9 under construction 7960 gross, 7550 net Baltic 1 (Kaliningrad) VVER 1200 1200 Planned, 2011 mid 2016 Seversk 1 VVER 1200 1200 Planned, 2013 2020 Leningrad II -3 VVER 1200 1200 Planned, 2011 2016? Nizhniy Novgorod 1 VVER 1200 1200 Planned, 2012 2019 Seversk 2 VVER 1200 1200 Planned, 2014 2025 Tver 1 VVER 1200 1200 Planned, 2012 2017 Nizhniy Novgorod 2 VVER 1200 1200 Planned, 2013 2021 Tver 2 VVER 1200 1200 Planned, 2013 2017 Baltic 2 (Kaliningrad) VVER 1200 1200 Planned, 2014 2018 Leningrad II -4 VVER 1200 1200 Planned, 2014 2019 Tsentral 1 VVER-1200 1200 Planned, 2013 2018 Tsentral 2 VVER-1200 1200 Planned, 2014 2019 Kursk II -1 VVER-1200 1200 Planned 2020 Kursk II -2 VVER-1200 1200 Planned 2023 Kola II - 1 VVER-1200 (was VK-300 or VBER-300) 1200 Planned, 2015 2020 Beloyarsk 5 BREST 300 Planned, 2016 2020 Dimitrovgrad SVBR-100 100 Planned, 2017 2020 subtotal of 17 VVER 1200 19,600 gross, approx 17,8600 net dates very tentative: Zheleznogorsk MCC VBER-300 300 Proposed 2015 Zheleznogorsk MCC VBER-300 300 Proposed 2016 Kursk II - 3 VVER 1200 1200 Proposed 2018
  32. 32. International Consultancy Project 32 | P a g e Plant Reactor Type MWe Status, Start Construction Commercial operation Kursk II - 4 VVER 1200 1200 Proposed 2019 Smolensk II – 1 VVER 1200 1200 Proposed 2017 Smolensk II – 2 VVER 1200 1200 Proposed 2018 Smolensk II – 3 VVER 1200 1200 Proposed 2019 Smolensk II – 4 VVER 1200 1200 Proposed 2020 South Urals 1 VVER 1200 or BN-1200 1200 Proposed, 2015 2021 Novovoronezh II -3 VVER 1200 1200 Proposed 2017 ? South Urals 2 VVER 1200 or BN-1200 1200 Proposed, 2015 2025 Kola II - 2 VK-300 or VBER 300 ? 300 Proposed 2018 Novovoronezh II -4 VVER 1200 1200 Proposed 2019 ? Tver 3 VVER 1200 1200 Proposed 2019 South Urals 3 VVER 1200 or BN-1200 1200 Proposed 2030 Kola II - 3 VK-300 or VBER 300 300 Proposed 2019 Primorsk 1 VK-300 or VBER 300 300 Proposed 2019 Nizhegorod 3 VVER 1200 1200 Proposed 2019 Nizhegorod 4 VVER 1200 1200 Proposed 2020 Tsentral 3 VVER 1200 1200 Proposed 2019 ? Tsentral 4 VVER 1200 1200 Proposed 2020 ? South Ural 4? VVER 1200 1200 Proposed 2020 Tver 4 VVER 1200 1200 Proposed 2020 Kola II - 4 VK-300 or VBER 300 300 Proposed 2020 Primorsk 2 VK-300 or VBER 300 300 Proposed 2020 Pevek KLT-40S 40x2 Proposed 2020 Beloyarsk 6 BN-1200 1200 Proposed (approved) 2024? Subtotal of 27 units 25,000 approx Source: World Nuclear Organization The growing demand in all energy sectors in Russia requires heavy engineering involves forging to supply main components for power plants.
  33. 33. International Consultancy Project 33 | P a g e CHALLENGES FOR FORGE MASTERS Sheffield Forge Master has to face many challenges in Russia because of their main competitor’s operational duties and performance. By knowing all factors Sheffield Forge Masters may achieve great success. Russia's main reactor component supplier is OMZ Izhorskiye Zavody facility at Izhora which is doubling the production of large forgings so as to be able to manufacture three or four pressure vessels per year from 2011. This represents a RUR 12 billion ($430 million) investment. OMZ is expected to produce the forgings for all new domestic AES-2006 model VVER-1200 nuclear reactors (four per year from 2016), plus exports. At present Izhora can produce the heavy forgings required for Russia's VVER-1000 reactors at the rate of two per year and it is manufacturing components for the first of two Leningrad II VVER-1200 units and for two at Novovoronezh II, as well as Belene and Tianwan VVER- 1000s. These forgings include reactor pressure vessels, steam generator shells, reactor internals, and heavy piping. It shipped steam generator shells to ZiO-Podolsk for finishing. Source: OMZ, 2011 In 2008 the company was rebuilding its 12,000 tonne hydraulic press, claimed to be the largest in Europe, and a second stage of work will increase that capacity to 15,000 tonnes.
  34. 34. International Consultancy Project 34 | P a g e In mid-2009 Izhora commissioned a furnace complex enabling production of 600-tonne ingots and 5.5 metre diameter forging shells for nuclear reactors. This was announced as the first stage of its expansion to produce four sets of nuclear reactor components per year. The 600-tonne ingot capacity will also enable production of large rotors for low-speed turbines. Izhora is keen to start manufacturing steam generators for large nuclear plants. OMZ - Uralmash-Izhora Group itself is the largest heavy industry company in Russia, and has a wide shareholding. It specializes in engineering, production, sales and maintenance of equipment and machines for the nuclear power, oil and gas, and mining industries, and also in the production of special steels and equipment for other industries. OMZ-Spetsstal has announced that it has received a five-year licence from Rostechnadzor, the Federal Environmental, Industrial and Nuclear Supervision Service, for the manufacture of equipment for nuclear power plants. It supplies to Izhora. Atomenergomash (AEM) part of Atomenergoprom claims to be the leading company in Russia for major components of nuclear power plants, controlling over 40 facilities, and to be the only Russian source of steam generators for nuclear plants . Company said that it is concerned to diversify its source of supply from OMZ, and is talking with Energomash- Atommash which was set up in the 1970s at Volgodonsk as principal nuclear equipment supplier. Krasnye Barrikady shipyard and Engineering Company AEM-Technologies have been mentioned as alternatives to Izhorskiye Zavody to supply reactor pressure vessels.
  35. 35. International Consultancy Project 35 | P a g e AEM is also considering developing its own capacity to make VVER pressure vessels, possibly in collaboration with an international company. AEM companies claim to have provided equipment in 13% of nuclear plants worldwide. Energomash-Atommash was set up in the 1970s as principal nuclear equipment supplier. It began producing large-scale reactor components in 1978 including pressure vessels, internal reactor parts, and steam generators. It supplied some parts in Iran and Taiwan in China, but until securing contracts for VVER-1200 core-catchers, each 810 tonnes, its focus was on the chemical, oil and gas industries and it had not handled any nuclear plant work for several years. It has capacity to make components up to 1200 tonnes. www.energomash.ru The Russian Power Machine Engineering Company (REMKO) was established in Russia in 2008, amalgamating some smaller firms, with half the shares owned by Atomenergomash. It produces steam generators and heat exchangers for nuclear power plants. www.remko.cz OMZ ZiO-Podolsk, part of EM Alliance-Atom and hence a 51% subsidiary of Atomenergomash since 2006, is increasing capacity to four nuclear equipment sets per year, investing RUR2.9 billion by 2015, one third of this by the end of 2009. (The remainder of the company is owned by Renova Group (25%) and EM Alliance (24%).) It is making the reactor pressure vessel and other main equipment for the BN-800 fast reactor at Beloyarsk as well as steam generators for Novovoronezh, Kalinin-4 and Leningrad. The BN-800 reactor
  36. 36. International Consultancy Project 36 | P a g e pressure vessel is 13 metres in diameter, and a unique 16-meter rotary-table milling machine is needed to manufacture it, using South Korean steel. In September 2007 Mitsubishi Heavy Industries (MHI) signed an agreement with Russia's Ural Turbine Works (UTZ) they manufacture, supply and service gas and steam turbines in the Russian market. Under the agreement, MHI, Japan's biggest machinery maker, will license its manufacturing technologies for large gas turbines and steam turbines to UTZ - part of the Renova Group. The agreement also calls for a joint venture to be established in Russia to provide after-sales service. Opportunities Forge Master has great chance in Russia Domestic suppliers produce a wide range of basic electric power generation equipment, which dominate the market. However, because Russian engineering firms do not currently compete in the market for large turbines there is a demand for imported hardware in the large and mid-range segment. Currently, the major players in the Russian market are: Power Machines (Siloviye Mashiny), Siemens, OMZ, Alstom, General Electric, ABB, EM Alliance, and others. Major foreign manufacturers of power supply equipment, including GE, Honeywell, Pratt and Whitney, Siemens, Mitsubishi and others, have opened representative offices in Russia. Some U.S. EPCM contractors have opened their own offices as well. In 2002, RAO UES started purchasing equipment and services through a system of open tenders. Approximately 17,000 tenders for energy projects were processed through the world’s largest marketplace for power generation equipment Companies such as General Electric, Dresser, Compressor Controls Corporation, Pratt and Whitney, and Black and Veatch are present in the Russian market and their products are available either directly or through representatives or distributors.
  37. 37. International Consultancy Project 37 | P a g e Russia currently has a total installed capacity of 224,541 MW with nuclear capacity of 22,693 MW. The country has 32 operating nuclear reactors which are of Pressurized Water Reactor (PWR), Fast Breeder Reactor (FBR) and Light Water cooled Graphite moderated Reactor (LWGR) type. The nuclear generation was about 159 billion kilowatt hours (kWh) for 2010. Energoatom Concern OJSC (Energoatom) is the key players in Russia's nuclear power industry. In 2010 the nuclear power contribution is about 15.7% to the total electricity production. The electricity sector in the country is largely based on thermal and nuclear sources. The Russian Federal Supervision of Nuclear and Radiological Safety is the nuclear regulatory authority of Russia. The nuclear policy of the country mainly focuses on the safe use of nuclear energy. The Russian nuclear energy industry is planning to build reactors with advanced features to ensure low capital and power costs, higher service life and higher rate of utilization. STRATEGIES/RECOMMENDATIONS FOR FORGEMASTERS Russian engineering firms do not currently compete in the market for large turbines there is a demand for imported hardware in the large and mid-range segment. Thus, Forge Master has a great opportunity in Russia. The main tactics for them are as follows-  Forge Masters should build reactors components with advanced features to ensure low capital with higher service life.  They must supply components made of lower power costs with higher rate of utilization.  Their supply challenge should not be confined but should extend to other engineering components as well.  The forgings may include reactor pressure vessels, steam generator shells, reactor internals, and heavy piping.  Initially they should be prepared to invest high capital to ensure large number of local contracts.  They must collaborate with local distributers to increase supply.
  38. 38. International Consultancy Project 38 | P a g e References Creative Commons, Report on Power generations sectors in Russia, 2007 Zeyno Baran, EU Energy Security: Time to End Russian Leverage, 2007 Report on Russian power project 2011-2015, 2010 Franz Hubert, Reform of Russian Power Industry, 2003 University of Berlin Robert Orttung, Russia’s Energy Sector between Politics and Business, 2008 Matlashov, Ivan. Russian energy sector to move from state regulation to free market, 2002. BBC Monitoring Former Soviet Union – Economic S.I. Palamarchuk. Status of Russian Power Sector Liberalization, 2008. DRPT2008 Summary of the energy strategy of Russia for the period of up to 2020, Ministry of Energy of the Russian Federation, 2003 ENERGY STRATEGY of RUSSIA, Ministry of Energy of the Russian Federation, 2010 Power Machines, 2011 www.power-m.ru/eng/company/ RuselProm, 2011 http://eng.ruselprom.ru/prod.html World Nuclear Organization, 2011 www.world-nuclear.org/info/inf45.html OMZ, 2011, www.omz.ru/eng/ AEM Group, 2011, www.aem-group.ru/wps/wcm/connect/aem/siteeng/ EM Alliancze, 2011 , www.em-alliance.com/en/holding/company UTZ, 2011 http://www.utz.ru/en.shtml Sheffield Forgemasters Engineering Limited. Company profile www.sheffieldforgemasters.com
  39. 39. International Consultancy Project 39 | P a g e Nuclear Industry Association (2010). Manufacturing a Nuclear Future: The UK Nuclear Industry http://www.nuclearsupplychain.com/faq Nuclear Power Company will be financially instable. (2010). Nuclear News. www.nuclear-news.net Number of Nuclear reactors under construction worldwide. Euro monitor. BBC News (Apr 2009). Nuclear Europe: Country Guide

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