Market share

OAO IDGC of Urals renders services to customers across the Perm, Sverdlovsk and Chelyabinsk regions since 2005. The Company is a natural monopoly with state-regulated electricity transmission and connection tariffs. The area of service is also abundant in other regional grid operators transmitting electricity mainly through low- and medium-voltage networks. In 2020, the Company’s GRR-based share of the electricity transmission market totaled 81%, RGOs’ share being 19%.

2020 Macroeconomic metrics

According to the first assessment of the Russian State Statistics Service, GDP lost 3.1% in 2020, nominal GDP totaling RUB 106,606.6 billion. The deterioration was due to anti-COVID restrictive measures and lowered global demand for energy resources. A 5.0% reduction of the domestic final demand and increase of net export of goods and services due to outstripping shrinking of import (-13.7%) over export cuts (-5.0%), impacted the YoY GDP dynamics. Final consumption expenditures also declined (–5.2% on 2019) due to reduced consumption mainly of non-foods and services affecting cuts of final consumption expenditures by households (-8.6%).

Primary indicators of the Outlook of the socio-economic development of the Russian Federation till 2023:

 

2020E

2021F

2022F

2023F

Consumer price index at the year-end, % on December

Baseline scenario

3.8

3.7

4.0

4.0

Conservative scenario

3.8

3.5

4.0

4.0

Gross domestic product, %

Baseline scenario

-3.9

3.3

3.4

3.0

Conservative scenario

-3.9

2.7

2.9

2.5

Industrial output, %

Baseline scenario

-4.1

2.6

3.6

2.3

Conservative scenario

-4.1

2.4

3.3

2.1

Export of goods, US$ billion

Baseline scenario

321.3

354.6

381.7

403.1

Conservative scenario

321.3

337.5

355.9

372.6

Source: https://economy.gov.ru/

According to the Outlook of the Ministry of Economic Development, the Russian economy may face several internal and external challenges on its way to recovery:

  1. Sanitary and epidemiological restrictions are lifted off gradually and erratically by the regional authorities, depending on epidemiological situation and capacity of health care systems. Some portion of sanitary and epidemiological restrictions to working conditions of enterprises and institutions will be of a long-term character. It is the sanitary and epidemiological situation that will determine the velocity of economic recovery.
  2. Recovery of global economy is obstructed by quite erratic emergence of countries from lockdowns that may lead not only to retention of demand restraints but also to gaps in global value chains.

Electricity consumption in 2020 and demand outlook for 2021-2023.

According to the UES of Russia’s functioning report, 2020 electricity consumption by the UES of Russia totaled 1,033,718.4 mln kWh (-2.4% or 25,643.2 mln kWh YoY). Electricity consumption demonstrated a significant reduction in April 2020 on the back of restrictive measures enforced due to the COVID-19 outbreak. Since May 2020, a deeper reduction of electricity consumption by the UES of Russia, related to simultaneous impact of several factors (continued lockdown measures, considerable cuts in electricity consumption by oil producers under the OPEC+ agreement and reduced domestic fuel use) was recorded. Besides, in 2020, large metallurgical, machine-building, chemical and wood-processing plants as well as electrified rail transport consumed less electricity.

Electricity consumption in the Company’s areas of service in 2020 totaled 99,255.4 million kWh (-3.23% or 3,319.8 million kWh).

Electricity consumption in the Company’s areas of service in 2019-2020 (mln kWh):

Energy system

2019

2020

YoY (+/-)

Perm region

23,912.8

22,397.3

-1,515.5

Sverdlovsk region

43,078.8

41,347.0

-1,731.8

Chelyabinsk region

35,583.5

35,511.1

-72.5

Total

102,575.1

99,255.4

- 3,319.8

Source: 2020 UES of Russia’s functioning report.

Specificities of regional economies determine demand growth. Thus, in the energy system of the Sverdlovsk region large investment projects are mainly in metallurgy (АО KUMZ, АО NLMK-Ural, АО RUSAL Ural), machine-building (PAO Machine-Building Plant named after M.I. Kalinin), construction materials (incl. АО Izvest Syserti), agriculture (АО “Zelenaya Dolina”). In the energy system of the Chelyabinsk region electricity demand is defined by the development through retrofitting of the large metallurgical plants (PAO “Magnitogorskyi Metallurgical Plant”, PAO “Chelyabinsk Metallurgical Plant”, PAO “Chelyabinsk Zinc Plant”).

Electricity demand outlook in the Company’s areas of service for 2021-2023 (mln kWh):

Energy system

2021F

2022F

2023F

Perm region

23,991

24,877

25,130

Sverdlovsk region

43,365

43,764

44,077

Chelyabinsk region

35,482

36,180

36,484

Total

102,838

104,821

105,691

Source: Scheme and program of the UES of Russia’s development for 2020-2026 (adopted by Ministry of Energy Decree dated as of 30.06.2020 No.508).

 
список разделов Личный кабинет Войдите в личный кабинет Up