Strategy

Vision, goals and strategic development

MISSION

The mission of INTER RAO UES is to promote sustainable economic development and improve the quality of life in all regions where the company operates by ensuring the reliable supply of energy, meeting the growing demand for electricity, and applying innovative technologies and solutions in the field of energy efficiency and conservation.

Vision (2020)

By 2020, INTER RAO UES should be one of the key players in the global energy market, a position which will be characterized as follows:

• INTER RAO UES is global company, and one of the largest electric-power companies in the world in terms of installed capacity and size of business and is an equal partner of the world’s major power-generation companies
• INTER RAO UES manages a diversified portfolio of assets, realizing the goals of shareholders and Russia's Energy Policy:
• The company operates in various segments of the energy value chain in the energy sector: from production and supply of fuel to distribution and sales to final consumers, achieving multiple synergies
• The company has a balanced portfolio of efficient generation assets, occupying a responsible position in the field of environmental protection
• The company's business is distributed equally among domestic and foreign markets
• The company plays an important role in the integration of national power systems in international unions and strengthen links between the energy market, and is also one of the largest global energy trading companies by volume of trade transactions
• Company projects and solutions in the field of the production of energy equipment and engineering, as well as in energy conservation and efficiency, contribute meaningfully to the task of upgrading the electricity base and innovative development of Russia

The company provides a steady growth in shareholder value over the long term.

Strategic objectives

Specific strategic objectives for the future of the company are as follows:

1. Expanding its presence in target overseas markets, as well as promotion to foreign markets of Russian practices and industry solutions
2. Creating conditions of energy security and strategic interests within the Russian Federation
3. Achieving leadership in the Russian energy sector
4. Providing leadership among Russian power companies in the area of ​​effective management of energy assets with a focus on innovation and energy efficiency
5. The growth of shareholder value

MAJOR TRENDS

Achieving these goals will be done through strategic initiatives in the following areas:

• Ensuring the reliability, safety and operational efficiency of existing assets
• Developing and implementing a common technical policy for the company and long-term programs of modernization and reconstruction will be priority measures to ensure the reliability and safety of industrial facilities. The company will take steps to improve the energy efficiency of electric and thermal energy and achieve leading positions in operating efficiency among Russian companies
  
  

Further growth in the thermal generation sector in Russia

The company plans to consolidate the shares of electricity companies owned by the Russian Federation and state-owned companies are also expected to purchase stakes in electric utilities and related industries belonging to other parties. An important task is the implementation of capacity supply contracts of investment projects for construction of generating facilities.

Expansion of the make up and base of foreign assets

The foreign policy of the company is focused on expanding its presence in foreign markets and ensuring the economic effectiveness of foreign assets while increasing their profitability.

The development of foreign trade and strengthening links between energy markets

Key tasks in this direction are the growth of foreign trade in electricity produced in Russia and the expansion of cost-effective areas of trade. The company also plans to expand its product line moving forward.

Diversification of the fuel balance of the company

An increased company presence in the segments of the renewable and nuclear energy for domestic and foreign markets as well as providing an increased percentage of non-fuel generation in total company generation is a strategic task that requires appropriate changes in the regulatory, corporate and technological environment. An important aspect of this activity should be co-operation with Russia's largest state-owned companies operating in the fields of renewable and nuclear energy.

The development of retail activity

The company must become the leader in the retail market in Russia, including through the formation of integrated multiproduct clusters in the regions on the principle of a one-stop shop for the consumer. One of the priority segments of the retail market for the company will be the service market in the field of energy efficiency and conservation.

The development of the fuel business

The predominance of fuel generation in the fuel balance of the company will remain on the horizon in 2020. An increased presence in the fuel production and supply segment look promising for the company and must ensure synergies with other parts of the value chain.

Development of engineering, technology transfer and capacity of production of new types of energy equipment

An important priority is to form a complete engineering complex cycle capable of providing power facilities services from design to operation of various types which are competitive on world markets. The internal task of the engineering complex will be the optimization of the time and cost of new construction projects. The company will make efforts to promote the development of Russian power engineering and the creation of standard technology solutions in the field of thermal energy, including for the transfer of technologies abroad.

Development activities in energy conservation, energy efficiency and innovation

The company aspires to becoming a corporate platform for the implementation of public policies on energy efficiency and promote innovation, and to occupy the leading position in the market for energy efficiency in Russia.