Board of directors’ progress report
2.2.6

Innovations

The Company’s 2016-2020 Innovative Development Program to be potentially extended till 2025 was adopted by the Board of Directors[28]. Mid-term implementation plan for 2017-2019 was updated and adopted as a part of the 2016 progress report with regard to implementation of the Company’s Innovative Development Program[29].

The goal of the Company’s Innovative Development Program for the mid-term and long-term (till 2025) periods is to shift to the new-generation innovative network with game-changing properties related to reliability, efficiency, availability, controllability and customer-centricity.

The key aspects of the Company’s innovative development are: transition to 35-110(220) kV digital substations, digital smart grids with distributed intelligent automation and control system, end-to-end performance of business processes and automation of control systems and application of the latest technologies and materials.

Innovative development progress during 2017:

1. Transition to 35-110(220) kV digital substations.

The innovative project related to implementation of IEC 61850 digital data exchange solutions in relay protection and automation systems is carried out at our pilot substations. The goal of the project is to create smart grids through modern equipment and systems as well as to use data transfer protocols, stated by the IEC 61850 standards. The “digital substation” technology is slated for deployment at Sverdlovenergo’s 110 kV “Kemping” substation.

Expected effect: enhanced automation and control, reduced exploitation costs due to extended repair intervals, usage of low-maintenance equipment, reduced restoration of normal network operation, reduced possibility of incidents and damages of equipment, usage of network fault location and remote switch control system.

The Year 2017 achievements: completed design of a digital 10 kV switch gear, comprising data exchange through digital buses, capability of remote control of switches, grounding blades and draw-out elements in 10 kV cells. A 10 kV equipment uses IEC 61850 digital data transfer. Expenditures: RUB 0.40 million (target), RUB 0.4 million (actual).

2. Transition to digital smart grids with distributed intelligent automation and control system.

The following activities were completed:

  1. Implementation of the project “Roll-out of metering systems on retail electricity market (0.4 kV, 6 kV, 10 kV). Upgrade/build-up of MIS. Automation of data collection from MIS” in Permenergo, Chelyabenergo and Sverdlovenergo branches.

    The goal of the project is to create a customer-centered automated metering system with smart metering functions (possibility of remote reading of metering parameters, incl. billing and load limitation/rejection; remote collection of consumption data; multi-tariff function; monitoring of meter status; data exchange).

    Effects: provision of reliable metering at points of delivery at responsibility boundaries of multi-family and single-family houses; provision of reliable metering at points of delivery for consumers connected to networks with peak losses and consumption; location of electricity loss centers through upgraded metering systems on 6(10)/0.4 kV substations making it possible to prepare balances of main substations with problematic feeders; minimization of expenses on metering automation (per metering point).

    The Year 2017 achievements: exclusion of in-house losses from electricity purchased to compensate losses; reduction of losses on selected network sections (by enhanced accuracy of metering and reduced unmetered consumption); growth of net supply (same as previous, plus monthly billing using metered values as of the end of each calculation period); reduction of operating expenses related to meter maintenance (manual data collection, manual data input, instrumental inspections).

    2017 expenditures:

    • Permenergo: RUB 67.63 million (target), RUB 73.70 million (actual);
    • Chelyabenergo: RUB 60.19 million (target), RUB 72.06 million (actual);
    • Sverdlovenergo: RUB 82.41 million (target), RUB 96.54 million (actual).
  2. Implementation of the project “Creation of new services for consumers: Charging infrastructure” in Permenergo, Sverdlovenergo and Chelyabenergo. The goal of the project is to launch charging stations to grant customer-centered services for EV owners.

    Effects:

    • Provision of charging infrastructure;
    • Integration of charging infrastructure into active-adaptive network;
    • Enhancement of electricity supply;
    • Use of EVs for own needs;
    • Support of EV public transportation promotion;
    • Improvement of environment in cities.

    The Year 2017 achievements:

    • Permenergo: 2 charging stations at Lukoil’s gas stations No.80 (Ocher, “Perm – Kazan” highway) and No.15 (Savinskoe, 2 km from Sokol);
    • Chelyabenergo: 2 charging stations at Chelyabinsk Urban Networks production department (Vostochnaya substation), Central Networks production department (Kasli district, near Allaki);
    • Sverdlovenergo: 1 charging station at Gazpromneft’s gas station No.72 (Achit district, “Yekaterinburg – Perm” highway, 161 km).

    2017 expenditures: RUB 2.00 million (target), RUB 2.45 million (actual).

3. Transition to end-to-end performance of business processes and automation of control systems.

The following activities were completed:

  1. Build-up of Production Assets Management System (PAMS).

    Project goals:

    • Build-up of the system for regular centralized management of core production assets in line with the Company’s strategic goals;
    • Enhancement of the quality of planning for repair, maintenance, upgrade and reconstruction programs;
    • Provision of Company’s management with a tool to generate data on production assets’ health and exploitation costs;
    • Creation of a mechanism for provision of maximum possible reliability level within set funding.

    Effects:

    • Build-up of the system for planning and execution of production programs (repair program, maintenance program, upgrade and refurbishment program, etc.), compliant with uniform requirements set by regulatory documents and Company’s bylaws;
    • Integration of the system covering financial and management accounting, control of logistics, transport and human resources;
    • Integration of the system with external systems to arrange data exchange, required for planning of production programs, integration with PAO Rosseti’s GIS systems, business analysis systems of the Company;
    • Establishment of the KPI system related to production asset management on all levels that help evaluate and compare production departments, branches in terms of processes, technical and economic properties for further solutions.

    The Year 2017 achievements:

    • Certification and revision of parameters of core production and auxiliary equipment;
    • Implementation of the project related to automation of the Company’s Standards “Arrangement of maintenance and repair. Drafting a list of facilities to be included into “Upgrade and Refurbishment” section of the investment program”;
    • Implementation of the project related to integration of the PAMS (based on SAP ERP, AS “Krona”, Log software) into “Incidents” software;
    • Implementation of the project developing the PAMS functionality: certification of new types of equipment (buildings and edifices, motorized transport and special-purpose vehicles, aerial and cable power lines, DOCS equipment, IT, metrology, electricity metering);
    • Implementation of the project related to automation of equipment technical certification and inspection;
    • Implementation of the project related to automation of ARRMS equipment electronic certification;
    • Introduction of changes into the information systems and administrative regulatory documents, as the failure aftermath evaluation methodology undergoes revision.
    • Deployment of the algorithm calculating failure aftermath for the key elements of the network;
    • Deployment of the TIS calculation using revised TIS 2016 algorithms and altered to meet Ministry of Energy requirements (ARTIS-2018);
    • Completed automation of the processes related to:
      • work planning and accounting of expenses on maintenance and repairs, technical certification and diagnostics;
      • generation of report forms on monitoring of the plan’s performance;
      • automation of the digital defect register;
      • generation of ARRMS digital certificates for substations and power lines;
      • calculation of maintenance in conventional and volume-forming units;
    • Final stage of activities related to:
      • integration with the system of collection, generation and analysis of network reporting;
      • automated generation of technical certification of substations and power lines;
      • automation of calculation of in-house works scope and value;
      • automation of the procedure evaluating equipment health and reporting on renovated facilities to craft upgrade and refurbishment programs;
      • automation of evaluation of the PAMS efficiency and maturity level.

    Reference books of the centralized system for controlling general reference information are revised on a regular basis.

    2017 expenditures: RUB 4.47 million (target), RUB 4.47 million (actual).

  2. Development of the knowledge management system. Roll-out of the digital system for accumulation, storage and distribution of knowledge.

    Project goal: improvement of information support of innovative activities, provision with required knowledge and information on innovative projects and activities. Effects: build-up and development of tools for accumulation, storage and distribution of knowledge (databases, information repository); exchange of development and solution implementation outcomes, exchange of best operating practices and achievements of innovative projects.

    The Year 2017 achievements: deployment of IT systems related to knowledge collection and management:

    • The XWiki corporate knowledge base has been created and continuously enriched;
    • The Redmine system for project management has been created;
    • The digital library of external and internal bylaws has been created;
    • Access to the “Konsultant+” and “Tekhexpert” information systems is granted to all engineers.

    2017 expenditures: RUB 0.38 million (target), RUB 0.30 million (actual).

4. Application of the latest technologies and materials.

Implementation of the project “Roll-out of 110 kV remote commercial meters”. The goal of the project is to create autonomous points of commercial metering in 110 kV networks at the boundaries of operational responsibility area for enhanced accuracy and authenticity of data.

Autonomous point of 110 kV commercial metering is a three-phase system comprising:

  • 3 HV i-TOR components;
  • 3 telecommunications channels;
  • 3 processing units installed with a meter and data transmission device in one block;
  • e-TOR-110/0.22 kV battery with capacity of 300-1000 W.

Effect:

  • provision of reliable metering at points of delivery for consumers connected to networks reporting peak losses and consumption;
  • remote 110 kV commercial meter, based on i-TOR combined digital current and voltage meter and e-TOR device, makes it possible to arrange commercial metering of consumption at any segment of the network (110 kV power line pole or substation); has a high accuracy of metering; has minimal size and weight and can be integrated into the automated meter reading and control system.

The Year 2017 achievements: pilot implementation of the technology, installation of the automated meter reading and control system at the 110 kV networks of the Nizhny Tagil Electric Networks and Western Electric Networks production departments at the boundaries with consumers, with data transmitted to a Sverdlovenergo AMRCS server, remote 110 kV meters were installed on:

  • pole No.10 of 110 kV aerial power line “Malakhit – Severskaya” with a branch line to “Bazhovo” substation and pole No.3 of 110 kV branch line to “Bazhovo” substations from 110 kV aerial power line “Polevskaya - Severskaya” (Western Electric Networks production department);
  • pole No.3 of 110 kV aerial power line “V.Tura - Topaz” with a branch line to “Rolik” substation and pole No.4 of 110 kV aerial power line “V.Tura - Sverkhglubokaya” with a branch line to “Rolik” substation (Nizhny Tagil Electric Networks production deparment).

2017 expenditures: RUB 13.15 million (target), RUB 12.65 million (actual).

Target and actual expenditures:

Aspects of the innovative development Expense target value RUB million (net of VAT) Expense actual value RUB million (net of VAT)
Transition to digital substations 0.40 0.40
Transition to digital smart grids with distributed intelligent automation and control system 212.23 244.76
Transition to end-to-end performance of business processes and automation of control systems 4.85 4.78
Application of the latest technologies and materials 13.15 12.65

During 2017 six researches under the mid-term plan of the Innovative Development Program implementation were carried out:

  1. Completed research: Smart Consumer School (03.08.2015-01.02.2017). The research was carried out in compliance with the specifications and calendar activities, contract executed. The Year 2017 achievements:
    • A report on research, compliant with GOST 7.32-2001.
    • A prototype of the smart metering software and hardware system in set with internal software on a physical media.
    • A mobile multimedia stand for demonstration of functionality of the smart metering software and hardware system.
  2. Completed research: Parametric study of performance characteristics of TNG non-insulated wires with typification of requirements (01.08.2016-01.08.2017). The works performed are compliant with the specifications and calendar plan, the contract is executed. The Year 2017 achievements:
    • Technical proposal on the upgrade of specifications for TNG wires and materials to be used at aerial power lines.
    • Results of engineering and economical comparison of traditional AS and TNG wires.
  3. Completed research: Examination of factors impacting personnel injury rate, development of long-term (strategic) multi-functional model of evaluation and management of risks related to an adverse aspect of a human factor that threaten personnel’s life and health in workplaces and communities (28.02.2017-03.07.2017). The works performed are compliant with the specifications and calendar plan, the contract is executed. The Year 2017 achievements:
    • A report on examination of a human factor.
    • A program for a psycho physiological training of the personnel aimed at reduction of impact of a human factor on injury rate.
  4. Research in progress: Development of specifications to the composition, functioning algorithms and selection of RPA triggering parameters for small generating facilities connected to the networks (30.06.2017-17.08.2018). The Year 2017 achievements: 1st stage completed, the following reports prepared:
    • Analysis of connection and exploitation of small generating facilities by PAO Rosseti’s grid subsidiaries with a bulk of distributed generation.
    • Analysis of overseas requirements to the build-up of relay protection automation for small generating facilities connected to the networks and analysis of research papers written in Russia or abroad on the subject-matter.
  5. Research in progress: UV-control diagnostic procedures for insulators mounted on power lines and 6-220 kV distribution switchgear (17.10.2017-15.11.2019). The Year 2017 achievements: 1st and 2nd stages completed, the following reports prepared:
    • Analysis of existing pre-breakdown diagnostic procedures for insulators mounted on power lines and 6-220 kV distribution switchgear. Detection of conditions causing stabilized breakdown.
    • Conduct of experiments to measure the intensity of prioritized number of risks of insulators under outside relative humidity, rain or dew.
    • Conduct of experiments to measure the intensity of prioritized number of risks of insulators under surface grease (rust, cement dust, salt solution).
    • Development of the guidelines for replacement of insulators mounted on power lines and 6-220 kV distribution switchgear after UV-detection procedures.
  6. Research in progress: Development of the methodology and algorithms for evaluation of compliance of RPA and ACS technical solutions with tender specifications formed as a SSD file (15.12.2017-02.04.2018). The Year 2017 achievements: 1st and 2nd stages completed, the following reports prepared:
    • Analysis of SSD files, formed by modern CAD systems.
    • Description of the business process on SSD usage.
    • Technical design specification with regard to generation of SCL-based files and technical requirements to system implementation.
    • Working prototype of algorithms, test program and methodology.
    • Architecture for the software and hardware to check algorithm functioning.
    • Recommendations with regard to development of digital substation technology in the mid-term.
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Full report or any of its chapters can be downloaded as pdf files on this page.
1About company
1.1Mission and strategic goals
1.2Market share
1.3Management systems
1.4Key 2017 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.5Investments
2.2.6Innovations
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Description of tariff policy
2.3.2Analysis of revenues and expenses
2.3.3Analysis of receivables and payables
2.3.4Credit ratings and bonds
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Security and anti-corruption
3.3.5Risk management
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.5FAQ
3.4.6Allocation of profit
3.4.7Contact information
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Company’s transactions
4.6Subsidiaries and financial investments
4.7Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Corporate governance code compliance report
5.4References
5.5Abbreviations and acronyms
5.6Sitemap