CHAPTER 3
BUSINESS REVIEW

3.3 International Activities

3.3.1 Targets and goals of international activities

The attraction of investments, innovative technologies, and equipment to RusHydro projects and the expansion of the Group’s presence in foreign markets based on its long-term experience in engineering, building, and operating energy facilities are the main objectives of the Company within its international activity.

The RusHydro focuses on long-term and mutually advantageous cooperation with foreign partners, which corresponds to the geostrategic interests of the Russian Federation.
The main directions of international activities are:

  • the representation of interests of the RusHydro and of the Russian power industry in political, industry and business areas;
  • bilateral cooperation with foreign energy companies and energy equipment producers, including the development of joint ventures and the localization of production within the territory of Russia;
  • the cooperation with intergovernmental organizations and sectoral and business associations;
  • the promotion of the attraction of foreign investments to the RusHydro projects;
    cooperation in experience exchange, innovations, and new technologies in hydropower, thermal power, RES, and heat supply;
  • the monitoring of processes in the global energy industry.

While conducting its international activity the PJSC RusHydro follows such principles as:

  • the mutual benefit and transparency of joint activity,
  • the long-term nature of cooperation,
  • available warranty and post-warranty maintenance service in case of the acquisition of modern foreign technologies and foreign equipment,
  • the preparation of complex decisions taking into account the specifics of the Russian power market,
  • the improvement of economic efficiency.

3.3.2 International Partnership

The largest world generating and engineering companies and the power equipment producers including Mitsui, KOMAIHALTEC, Kawasaki Heavy Industries and Sojitz, Voith Hydro, GE, PowerChina and ZHEFU are the main partners of RusHydro.

Together with Japanese companies Mitsui, KOMAIHALTEC, Kawasaki Heavy Industries and Sojitz, the possibilities of joint implementation of projects in the field of development of HPPs, PSPs, wind and geothermal power facilities, as well as production of liquefied hydrogen are being explored. The cooperation with Voith Hydro on the project of localization of production and on the modernization of the equipment of the hydroelectric power plants of RusHydro is continuing. As a part of the comprehensive modernization of the assets of PJSC RusHydro in the field of thermal generation in the Far East of Russia the cooperation with energy companies and power equipment manufacturers of Japan, China, the United States and other countries is carried out.

As a part of advancing the competencies of the RusHydro scientific and project complex in the field of hydropower and RES to foreign markets, in 2016, the RusHydro’s engineering organizations successfully completed contracts for the provision of engineering services at facilities in Turkey and Vietnam. In 2016, a number of contracts and contracts for the provision of engineering services were concluded within the framework of energy projects, including in Tajikistan and India.

The Company concluded a number of agreements on cooperation and the implementation of joint projects with the largest foreign power corporations within the reporting year.
The RusHydro participates in the meetings of intergovernmental commissions on trade and economic and scientific and technical cooperation between Russia and foreign countries. Those events result in the establishment of working contacts with foreign business partners.

Intercorporate documents signed in 2016

AgreementArea of cooperationAdvantages
Agreement on technological cooperation between PJSC RusHydro and Mitsui & Co., Ltd
(09.02.2016)(02.09.2016)
Cooperation in the field of joint development of strategic cooperation for the implementation of new projects using technologies and expertise of the Japanese side.The possibilities of attraction of investments and modern international technologies.
Memorandum of Understanding on the implementation of cooperation projects between PJSC RusHydro and Mitsui & Co, Ltd (16.12.2016)Cooperation and joint implementation of potential projects mainly in the field of thermal, hydro, wind, geoheat and production of liquefied hydrogen.The possibilities of the attraction of investments and modern international technologies.
Memorandum of Understanding on Acquisition of Treasury stocks of PJSC RusHydro between PJSC RusHydro, Mitsui and Japan Bank for International Cooperation (JBIC) (02.09.2016)The implementation of the acquisition of treasury stocks of PJSC RusHydro, Mitsui conducted a comprehensive audit of the main assets of PJSC RusHydro.Fund raising for the implementation of projects within the territory of the Russian Federation.
Memorandum of Intent between PJSC RusHydro, Mitsui and KOMAIHALTEC Ink (16.12.2016)The implementation of potential joint wind energy projects (within the framework of the RES Development Program), For this purpose, the Parties intend to reduce the cost RES projects due to the production of wind power plant or an element (elements) of wind power plants within the territory of the Russian Federation,Attraction of investments and modern international technologies.
The agreement between PJSC RusHydro, Kawasaki Heavy Industries, Ltd and Sojitz Corporation on cooperation to expand the use of GTUs in the implementation of projects in the Far Eastern Federal District
(16.12.2016)(16.12.2016)
Cooperation to expand the use of GTUs in the implementation of projects on the territory of the Far Eastern Federal District. According to the agreement, Kawasaki undertakes to certify the GTU's manufactured equipment in accordance with Russian standards, and together with Sojitz to open a service company in the Far Eastern Federal District in 2017 to maintain this equipment.Attraction of modern international technologies.and equipment.
Declaration of intent for the purpose of cooperation in the field of RES development between PJSC RusHydro, the Republic of Sakha (Yakutia) and the New Energy and Industrial Technology Development Organization of Japan (NEDO) (16.12.2016)Cooperation in the implementation of mutually beneficial Russian-Japanese projects in isolated energy areas of the Russian Federation.The possibilities of attraction of modern international technologies.

3.3.3 Cooperation with international organizations

The PJSC RusHydro pays considerable attention to participation in the activity of international power organizations. The RusHydro representatives participate in committees and working groups of a number of non-profit partnerships and international organizations being the members of such organizations as:

  • World Energy Council,
  • The Global Sustainable Electricity Partnership (GSEP),
  • The International Hydropower Association (IHA),
  • The International Commission on Large Dams  (ICOLD),
  • Russian-Chinese Business Council.

The Company develops cooperation within international government organizations and integration associations including the Eurasian Economic Union (EEU) as a part of activities with the Eurasian Economic Commission (EEC); the CIS Electric Power Council (CIS EPC); the Asia Pacific Economic Cooperation (APEC); the Shanghai Cooperation Organization (SCO); BRICS, etc.

The Company is an active participant of large international forums, exhibitions, and conferences on thermal power, hydropower, RES, and heat supply. In 2016 the RusHydro Group sponsored and actively participated in the East Economic Forum which was an efficient platform for the establishment and strengthening of relations with foreign partners, especially with Asia-Pacific countries, and attracting investors to Far East energy infrastructure development projects. Also the traditional international platform for RusHydro’s presence is the St. Petersburg International Economic Forum.