On the initiative of IDGC Holding, the 1st “Russian Electric Distribution Grid Sector: Status, Challenges, Solutions” Conference was held as part of the “Energy Industry and Electricity Industry” Exhibition at Pavilion No. 7, 8A at the Lenexpo Exhibition Complex, Saint Petersburg, May 12, 2010.

IDGC Holding’s co-organizers were Lenexpo and RusCable Media-Holding, comprising the RusCable Internet-Portal and the Cable-news Magazine.

The Conference was attended by more than 600 participants, including senior executives of VS Energy International Group, Ukraine, and large international companies EDF, ERDF, Schneider Electric, and Nexans, France; representatives of the Saint Petersburg and Leningrad Region administrations; engineering managers and technical experts from the IDGC Holding subsidiary operating companies; senior executives and experts from the largest Russian and foreign energy companies, research and development entities and educational institutions; Opora Rosii; and veterans of the Russia electric distribution grid sector. Thirteen presentations were made.

At the Conference, IDGC Holding was represented by Deputy Director General – Chief Technical Officer Pavel Okley, Director Information Policy and Communications Aleksandr Uzhanov, and Director of the Department for Technological Development and Regulation Dmitry Medvedev.

Through Pavel Okley, the Conference participants received greetings from IDGC Holding Director General Nikolay Shvets. In his speech, Pavel Okley noted that the current status of the Russian electric distribution grid sector was characterized by high levels of wear and tear (69% on average for IDGC) and losses (8.7% according to the 2009 results). According to him, reducing technological and commercial losses is the key method to enhance energy efficiency in the Russian distribution grid industry.

One of the main indicators for electricity supply quality is the length and frequency of interruptions. “The 2009/2010 heat deficit period, despite a certain increase in technological problems, saw a substantial reduction in average duration of interruptions—from five and a half to four hours,” said Pavel Okley. In his opinion, the Company could achieve these results owing to the timely and full implementation of the maintenance program and steadily high level of capital investment in modernization and retrofitting of distribution grids.

Pavel Okley focused on the need for a large-scale renovation of electric grid equipment. The renovation process will be based on new technologies and modern equipment enabling to reduce cost per unit and improve operational characteristics of grid elements to ensure reliable and uninterrupted electricity supply for consumers.

It is expected that the implementation of the Program for Renovation of the Electric Distribution Grid Sector, which will be submitted for consideration by the Government of the Russian Federation in May this year, will result by 2020 in a reduction in wear and tear and transmission losses from 69% to 48% and from 8.7% to 6.1% respectively.

Achievement by IDGC Holding of its objectives will be promoted by the “Regulations for Engineering Policy for the Electric Distribution Grid Industry, whose approval is scheduled for 2010.

Director of the Department for Technological Development and Regulation Dmitry Medvedev pointed out that one of the main requirements for modern electric grid equipment is obligatory employment of new technologies making it possible to reduce cost per unit and enhance operational characteristics of grid elements.

At the Conference, presentations were also made by representatives of foreign energy companies. French colleagues, Electricite Reseau Distribution France International (ERDF) Director General Jacques Horvilleur and Advisor to Chairman of the ERDF Management Board Marc Boillot, shared their experience in electric grid management. According to the Conference participants, foreign best practices should be made use of in the regions of the Russian Federation.

A celebration in honor of Great Patriotic War veterans was held at the Conference as part of the Victory Banner Ceremony launched, on the initiative of the veterans of the Russian electric distribution grid sector, at the Victory Hall of the Central Museum Armed Forces of the Russian Federation on May 5, 2010.

A speech made by Yury Zhukov, Chairman of the Coordination Council of Veterans of the Electric Distribution Grid Sector, was dedicated to courage and heroism demonstrated by workers of the electricity industry in the years of the Great Patriotic War. According to Mr. Zhukov, “The experience in construction of energy facilities gained in the war and post-war period served as a basis for the development of a high-capacity national united power system.”

In continuation of the festive events dedicated to veterans, a commemorative plaque will be unveiled on May 13 this year in honor of veteran electricity workers who supplied Leningrad with electricity in 1941–1945.

The resolution adopted in summation of the Conference notes that it is advisable to hold events of this nature on a regular basis.