2014 Annual report

Equipment Wear

The North-West power grids have the following features:

The electrical continuous-cycle equipment installed at the Company’s industrial sites was mainly made in the 60s and 70s of the last century and does not meet current reliability and cost effectiveness requirements, implies high OPEX annually increasing as equipment grows older. Project grid diagram solutions do not meet the current reliability requirements and coupled with a high share of the grid equipment with an expired standard service life and territorial specifics of the North-West grid facilities result in low resistance to disasters.

In the 90s of the last century objective economic conditions resulted in a decrease in grid retrofit and rebuild rates and a sustainably growing trend towards facility wear.

In 2014, 74% of total investments was allocated for retrofit and rebuild of grid facilities. In the near future, JSC IDGC of the North-West will continue to invest in power supply reliability improvement, reduction of fixed asset depreciation, and creation of conditions for connection of new capacity and development of regions.