One of the the Company’s strategic directions is to achieve the level of technological development of highly industrialised countries by modernisation and the establishment of a new power grid structure through innovative technological renewal. The Board of Directors of IDGC of Centre, JSC sees the development of an Innovative Development Programme as its priority area of activity.

In 2011, IDGC of Centre, JSC approved the Innovative Development Programme (to be referred to as “the IDP”) covering the period 2011-2016 (Minutes of the Meeting of the Board of Directors of August 01, 2011 No. 17/11). The IDPInnovative Development Programme is focused on achieving the following economic, social and ecological benefits.

Economic benefits will be achieved by:

  • enhancing the working reliability of the power grid equipment, reducing the frequency of outages and average duration of outages of power supply;
  • reducing electric power losses;
  • reducing the number and likelihood of accidents and technical breakdowns;
  • reducing operational and investment expenditures, increasing the duration of operation of power grid equipment through implementation of the assets management system;
  • reducing the undersupply of energy to consumers.

Benefits for consumers will be achieved by:

  • enhancing the working reliability of the power grid equipment, reducing the frequency of outages and average duration of outages of power supply;
  • reducing the undersupply of energy to consumers.

Social and economic benefits will be achieved by:

  • increasing the volume of tax receipts to the budget through the provision of new services;
  • creating new job vacancies.

Ecological benefits will be achieved by providing output from power stations producing electric power on the basis of renewable energy resources, etc.

In order to appraise the positive economic effect from the implementation of each project, specially developed efficiency coefficients are applied.

In the short term, the Company’s own funds will serve the as the main source of financing for the IDP.

In the longer term it is expected that the following sources of financing will be brought in:

  • co-financing on interaction with technical institutes;
  • shared financing of import-substitution industries projects;
  • foundation and grant funding;
  • special-purpose federal programmes;
  • special-purpose regional programmes to implement projects with strategic importance for particular regions;
  • attracting private, Russian and foreign investments for joint projects;
  • cash receipts from commercialisation projects which will be reinvested in innovation activities; this source of income will provide for budget compensation.

The IDP’s financing sources, as well as the values by which its implementation efficiency is measured, may be adjusted in accordance with the parameters of the annually approved business plan, including the investment programme of the Company which takes into account changes in external factors.

In 2011, IDGC of Centre, JSC established a special structural subdivision, called the Department of Innovations, which is responsible for the entire spectrum of works connected with finding and implementing significant projects.

During 2011 several projects were identified and approved by means of expert appraisal, which fit the IDP efficiency criteria in the three key ways set out below.

Direction of the IDP Description of the direction
1. Performance of research and development works (to be referred to as “R&D”) Focused on seeking out, developing and implementing new technologies and technical solutions to solve problems of enhancing reliability and security of power supply system, enhancing transport and consumption of electric power efficiency, and improving quality of power supply for consumers.
The priority here is active work with improving technologies permitting modernisation of existing networks and improving their functionality parameters
2. Development of methodological support Focused on provision of regulatory basis for work throughout the innovation cycle
3. Implementation of innovations Focused on problem-solving in the development, modernisation and increase of energy efficiency using innovative approaches, new equipment and technologies.
Here a connection is established between the Company’s production and innovation activities, directed towards working out new areas of development and technologies, and putting into practice mechanisms for implementing innovations.

In 2011, IDGC of Centre, JSC implemented the following measures for the assimilation of innovative technologies in this field:

  1. Enhancement of energy efficiency: the adjusted Programme for Energy Saving and Energy Efficiency of IDGC of Centre, JSC for 2011-2015 was approved (Minutes of the Meeting of the Board of Directors of August 18, 2011 No. 18/11).
  2. Increase of “green” production: the 2011 and 2012-13 IDGC of Centre, JSC Programmes for Realisation of Ecological Policy of IDGC of Centre, JSC were approved (Minutes of the Meeting of the Board of Directors of May 31, 2011 No. 13/11).
  3. Assimilation of new technologies in production:
    • the 2012-2021 IDGC of Centre, JSC Programme for the Renovation of Power Grid Equipment was worked out;
    • a patent for pole-type transformer substationsSubstation, electric installation designed to convert and distribute electric power was included in the company’s accounting;
    • the following R&D operations were carried out:
      • creation of a software complex for planning, accounting and control of the implementation of programmed repair and maintenance servicing of electric power grid plant (partially);
      • development/integration of software-hardware complexes for operation as part of an accident elimination management system (based on experience gained implementing the pilot EPR project);
    • completion of the first stage of innovation implementation with the “Development of an intelligent electricity metering system”.

In 2011, three youth innovation centres were also established IDGC of Centre, JSC branches in Belgorod, Voronezh and Yaroslavl. These centres’ primary task is to seek out and shape innovative solutions. The centres will collaborate closely with scientific centres in the regions, whose expertise will facilitate the identification and intelligent development of long-term projects.

All projects approved for realisation are the first results of coordinated activities of the Company in accordance with the IDP. In 2012-2016 more work will be carried out to adjust and further implement the large-scale innovations programme.