OREANDA-NEWS. Inter RAO Group announced operating results for the full year 2014.

Installed power generation capacity of the power plants of Inter RAO Group increased in 2014 mostly due to addition of 1.6 GW of new facilities built to support Capacity Delivery Agreements. Inter RAO built the new Yuzhnouralskaya TPP-2 power plant (operating two units rated at 408 MW and 420 MW), the third power generation unit at Nizhnevartovskaya TPP (rated at 413 MW) and the eighth power generation unit at Cherepetskaya TPP (rated at 225 MW), and completed the rehabilitation of turbine generators at Omskaya TPP-3 (60 MW, an increase of 10 MW) and Omskaya TPP-5 (100 MW, an increase of 20 MW). Ufimskaya TPP-4 retired two turbine generators with combined capacity of 60 MW at the same time.

Installed heat production capacity increased due to modernization of the existing equipment at the power plants operated by Bashkir Generation Company.

Reduction of power generation by Russian assets of Inter RAO Group mostly reflects load optimization using SAGE (Selection of Active Generation Equipment) technology in the Russian market, which prioritizes the use of high-efficiency power generation over less efficient power generation units. In particular, there was a significant reduction in utilization of low-efficiency power generation units at Kashirskaya TPP (by 27.4%) and Verkhnetagilskaya TPP (by 11.3%).

At the same time, several Russian power plants increased their power generation, including Kostromskaya TPP (9.4% increase due to elimination of technical limitations on gas supply in the summer of 2014), Sochinskaya TPP (5.0% increase due to high utilization during Sochi Winter Olympics) and Urengoyskaya TPP (2.2% increase). New CDA power generation units added at Nizhnevartovskaya TPP and Yuzhnouralskaya TPP-2 in early 2014 enjoyed high utilization. Heat delivery increased due to colder weather in late 2014 compared to the same period of the previous year.

The change in power generation by international subsidiaries of Inter RAO Group reflects several different factors. Increased power generation at Moldova TPP (27.9% increase due to greater export to Moldova in the second half of 2014), Mtkvari TPP in Georgia (34.5% increase) and other power plants was fully offset by the 24% drop in power generation at Ekibastuzskaya TPP-2 reflecting lower demand and stronger competition in the Kazakh energy market, combined with reduced power output of Trakya TPP in Turkey due to scheduled repairs in the spring of 2014.

All our international assets increased heat delivery due to cold winter.

Our Russian retail businesses increased their operating performance due to geographic expansion of the Group's suppliers of last resort in early 2014 (St. Petersburg Energy Sales Company started selling electricity in Omsk Oblast, while LLC Inter RAO - Oryol Energy Sales Company started selling electricity in Oryol Oblast) and the inclusion of Tomsk Energy Sales Company in Group reporting starting from November 2013. Besides, Moscow Energy Sales Company increased its sales through the expansion of its sales geography beyond Moscow region and reacquisition of large consumers.

Independent retailers increased power sales by 5.2% to 25.7 TWh as RN Energy expanded its sales geography while RT Energy Trading acquired new customers.

The length of our transmission lines in Georgia increased due to infrastructure rehabilitation and upgrades, and new grid connections. Georgia increased power consumption reflecting its economic growth and smaller transmission and distribution losses.

Reduction of export across nearly all markets reflects unfavorable pricing environment in the domestic and foreign electricity markets, most importantly our key markets of Finland, Lithuania and Belarus.

Export to China reduced due to long repairs of infrastructure facilities.

Export to Ukraine increased due to shortage of electricity in United Energy Systems of Ukraine and the need to support concurrent operation of national energy systems. Export to Georgia increased due to specific balance of Georgian Energy System in 2014 and the commencement of energy delivery to Georgian Energy System for further re-export to Turkey in December 2014.

Import from Kazakhstan reduced for economic reasons, most importantly currency depreciation. Import from Georgia reduced due to Georgia refocusing on Turkish market where prices were more favorable than in Russia.