E.ON SE - Russia

Russia has been an important and valued E.ON business partner for more than four decades. We’re the largest foreign investor in Russia’s energy market and have 9.9 GW of generating capacity there, which represents about 6 percent of the country’s total capacity. Our five power stations are located in key industrial regions (Central Russia, Urals, and Western Siberia) and have an average load factor of about 74 percent, which ranks us among the country’s top power producers. These assets give us a superior platform for creating value in the world’s fourth-biggest electricity market, whose wholesale and capacity segments are now fully liberalized.

In Numbers
Installed capacity	9.9 GW
Power sales	66.5 TWh
Employees	5,060

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Our Sustainability Effort in Russia

Our energy business in Russia is entirely upstream. We operate big power stations and sell bulk power to industrial customers and the wholesale market. Consequently, we have two primary sustainability objectives in Russia. First, we aim to continually improve our safety performance so that the people who work at our power stations (our own employees and contractors) don’t get hurt. Second, we want to continually improve the climate performance of our generation portfolio so that we produce cleaner electricity.

Making Our Workplaces Safer

On the safety side, E.ON Russia has put in place an Occupational Health and Safety Management System (OHSMS) that was certified in 2011 to comply with OHSAS 18001-2007, an independent, international standard for such systems. E.ON Russia has also established a company-wide OHS Committee (chaired by the CEO) and an OHS working group at each power station. The OHS Committee is responsible for setting OHS policies; the working groups for monitoring the policies’ effectiveness in practice and identifying ways to improve them. The main aims of E.ON Russia’s OHS strategy are to:

comply with all OHS laws and regulations
foster and maintain a robust safety culture and safe workplaces
factor OHS into business decisions
critically review OHS performance at regular intervals and disseminate best practices.

In 2012 Bureau Veritas, an internationally renowned inspection and certification specialist that certified our compliance with OHSMS 18001-2007 in 2011, performed the first audit on OSHMS. Bureau Veritas auditors found that E.ON Russia:

has effectively maintained its OSHMS
has set OHSMS-related objectives and is monitoring their achievement
is demonstrating continuous improvement by achieving planned parameters and by implementing measures aimed at reducing risks.

Making Our Power Cleaner

On the climate-protection side, we’re investing EUR 2.8 billion to modernize our Russian generation portfolio and at the same time significantly reduce its carbon intensity. Over the last two years, we’ve commissioned 1.6 GW of technologically advanced gas-fired generating capacity at our existing power stations in Russia. Thanks to an industry-leading fuel efficiency of nearly 57 percent, these units cut carbon emissions by an aggregate 4 million metric tons during 2010-2012. We’re also adding 0.8 GW of high-efficiency coal-fired capacity, which will enter service in 2014.

Alongside the steps we take to achieve our two primary sustainability objectives in Russia, we also have programs in place to encourage our employees to embrace a healthy lifestyle and to educate young people about energy and environmental issues. These include biannual sports festivals for employees and support for energy-industry courses at local secondary schools and universities.

Best Practices

Systematic Safety Training

When it comes to occupational health and safety, fire safety, and technical operations, E.ON Russia is committed to maintaining a high level of staff training. Systematic training guidelines are an important part of this effort. E.ON Russia’s guidelines set specific competency requirements for each category of employee (maintenance, operational, administrative) and define for each category a specific training and assessment regimen in order to maintain this competency. The regimen consists periodic briefings, professional development, special training, and testing. This systematic, custom-tailored approach ensures that all employees continually receive precisely the training they need to do their jobs safely and to be aware of all occupational and fire safety issues in their workplace.

Ash: From Trash to Cash

Fly ash is a by-product of coal-fired power generation. As with all by-products, the question is: what do you do with it? Like many power stations around the world, Berezovskaya GRES (GRES is a Russian acronym for state district power station), an E.ON coal-fired facility in Krasnoyarsk territory in west-central Russia, has long treated its ash as trash: it disposes of it in ash ponds. But soon it will have a cleaner and better way. That’s because it's installing a technologically advanced dry ash handling system. Once the system is in place, Berezovskaya GRES will collect its fly ash which can then be sold as an additive in horticulture, road construction, and concrete and brick manufacture. The new system not only makes economic sense. It also makes environmental sense. E.ON Russia won’t have to create more ash ponds at the site and intends to rehabilitate the existing ponds. That’s good for groundwater quality and landscape integrity. The new system received regulatory approval in October 2012 and is expected to be fully operational by 2015.

E.ON in Russia