1.3 Market share and sector development trends
OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals renders services to customers across the Perm, Sverdlovsk and Chelyabinsk regions. The Company is a natural monopoly with state-regulated electricity transmission and connection tariffs. The service area is also abundant in small municipal and private grid operators transmitting electricity mainly through low-voltage networks.
In the Perm region Permenergo retained its GRRgross revenue requirement-based market share at 87%, 13% of the market belonging to the regional grid operators.
In 2018 the GRRgross revenue requirement-based market share of Sverdlovenergo (together with AOJoint-Stock Company EESKYekaterinburg Electric Grid Company) lost 0.6% to total 76.8%. This reduction of the market share was impacted by the advanced growth of GRRgross revenue requirement of other regional operators in comparison to the Sverdlovenergo’s GRRgross revenue requirement.
The GRRgross revenue requirement-based market share of AOJoint-Stock Company EESKYekaterinburg Electric Grid Company as of 01.01.2019 totals 11.5%. For the last three years, the contribution of AOJoint-Stock Company EESKYekaterinburg Electric Grid Company to the total GRRgross revenue requirement increased by 1.1%.
In 2018, the GRRgross revenue requirement-based market share of Chelyabenergo lost 0.4% to total 77.4%.
The electricity sector of the areas of the Company’s presence evolves in line with the relevant regional schemes for development of the energy complex, generated in compliance with the Government Decree (3), factoring in development blueprints of all sector players and regional load gain forecasts. In 2018, the authorities of the Perm, Sverdlovsk and Chelyabinsk regions has prepared and approved the schemes and blueprints for development of the energy sector for 2019-2023 (4-6). To streamline plans on development of the grid sector, in 2018 OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals contracted Vega Group’s Engineering & Marketing Center and OAOOpen Joint-Stock Company Engineering Center of the Urals Energy Sector to prepare the Integrated 35+kV Network Development Program for 2019-2023. The materials were filed with the authorities of the regions of the Company’s operations to be used in the production of the schemes and programs for development of the energy complex for the next period.
Pursuant to the Edicts of the President of the Russian Federation and Decree of the Russian Government (7-9), for the purposes of the PAOPublic Joint-Stock Company Rosseti’s Digital Transformation – 2030 Concept (10), the following tenets and courses of development of the OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ networks will be revised:
With regard to the Company itself:
- Enforcement of observability of electric grid facilities and operation modes;
- Automated management of technological and corporate processes;
- Application of principles of automated risk-oriented management;
- Build-up of a unified-standard digital CIM and information interaction with all contractors (electric grids, consumers and other power industry entities);
- Integration and combination of various ITinformation technologies-systems on hierarchy levels;
- Integration of net information (technological and corporate) systems;
With regard to regulated business operations of the Company:
- Enforcement of electricity loss reduction;
- Optimization of opex and capex;
- Acceleration of connection procedures;
- Enhancement of supply reliability;
- Increment of publicity and transparency of the Company;
- Control of the tariff growth;
With regard to the periphery of interaction with other entities:
- Establishment of an omnibus, reliable, transparent and testable system of smart metering;
- Construction of the infrastructure for easy and efficient interaction with consumers (load control, distributed generation, prosumers);
- Conditioning for automated contractual relations (smart-contracts) with regard to electricity transmission, connection, etc.;
With regard to development of new unregulated services:
- Construction of a novel infrastructure for open, efficient and flexible exchange of electricity amid all market players with minimal transaction costs.
At present, the OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ 2019-2029 Digital Transformation Program is being devised, Aug.01, 2019 slated as the deadline for its validation. The Program will stipulate goals and objectives of digital transformation, key principles and approaches to digital transformation, list of pilot projects and control structure of digital transformation activities.
The Board of Directors adopted the OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ 2016-2020 Innovation Development Program to be potentially extended till 2025 (11). To enhance efficiency of the program planning and implementation the following key directions of innovation-driven development were set:
In terms of technical innovations:
- Cutting-edge technologies and solutions (current limiters, controlled devices, new-type wires with improved electrical conductivity and durability, new-type isolators, power electronics, etc.);
- Digitization of management and technological processes (digital measuring transformers, digital network equipment, shift to digital substations, etc.);
- Enhancement of grids flexibility (adaptive relay protection and emergency automation, control systems, logic automation, digital on-line net model).
In terms of organizational and marketing innovations:
- Designing new and systemic re-engineering of existing business processes through the lens of complex efficiency (management of production assets, management systems, front-end services, management of life cycles of the system, lean production practices);
- HR management innovations (implementation of HR management technologies, relevant to this day);
- Shaping innovative environment around the Company (partnership in technological platforms, implementation of cooperation agreements with anchor higher education institutions).
In terms of grid digitization, the Innovation Development Program stipulates implementation of IECInternational Electrotechnical Commission, international standards and conformity assessment body 61850 technical solutions related to digital data exchange in relay protection and automation systems at OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ pilot substations (Digital Technologies and Shift to Digital Substations) and All-round automation and telemetry of 10-0.4-kV distribution networks (Shift to Digital PDZ active-adaptive networks).