Page 100 - RusRPTJan22

pricing is not news – prices have been strong since probably mid-year – but, surprisingly, we have seen no abatement. Expect a strong 4Q21 from Russian gencos across the board,” BCS GM added.
Power consumption statistics for November 2021 "
Energy zone Center
Urals + Tyumen
North-west South
Volga Siberia
Far East Total
Source: System Operator data, BCS
Production, TWh, Nov
23.8 23.1
10.4 9.5
8.9 19.1
4.4 99.3
Chan ge, y/y
6.20% 7.70% 13.10
% 7.70%
-4.70 %
4.80%
12.00 %
6.30%
Consumption, TWh, Nov
22.8 23
8.7 9.4
9.7 19.4
4 97
Chang e, y/y
3.90% 6.20%
6.50% 4.80%
3.10% 5.00%
6.70% 5.00%
Gencos have filed a proposal to the Market Council to introduce a minimum guaranteed price level on the RSV market. It suggests setting the minimum price per kilowatt-hour at the level of the "economically justified lower limit of the production cost". Thermal generation seeks to receive such a price when there are zero prices in the market. The gencos are asking to “provide for the entrepreneurial rate of return”. The proposal is to be assessed. A large share of the sector's profits from gencos is already regulated. The contribution of DPM into EBITDA is 30-70%, and is even higher than EBITDA for OGK2. Gencos’ strategies are, thus, based on regulated mechanisms such as DPM2 and various DPMs. Thus, gencos’ request for more regulation is understandable, especially in light of the growing demand for renewable energy, as industrial consumers are looking to improve Scope 2 emissions and even reach carbon neutrality on Scope 2 (as announced by Rosneft in its
100 RUSSIA Country Report January 2022 www.intellinews.com