Inter RAO Group presented the company's development strategy until 2025 with an outlook for 2030, approved by the Board of Directors of PJSC Inter RAO on July 31, 2020. The approval of the new strategy marks a new development stage, aimed at ensuring efficient energy asset management and maintaining leading position in the Russian power industry.
All goals and objectives of the previous strategy, approved in 2010 and updated in 2014, were successfully achieved. The company has strengthened its positions in various segments of the electric power sector and become a diversified energy holding that owns and manages diverse assets both in domestic and foreign markets. For 10 years, the company's revenue increased 15 times (to 1 tln rubles), EBITDA increased 13 times (to 142 bln rubles), the Group's installed capacity increased more than 3 times (to 32 GW), the company's share in the retail market exceeded 18%, the volume of foreign trade operations amounted to more than 20 bln kWh. Successful consolidation and improvement of asset efficiency have turned the company into one of the key players in the energy market of the Russian Federation.
The new strategy aims to both retain and improve the diversified energy holding business model and is developed according to current external trends that can have an effect on the company. Among the main challenges are the slowdown in global economic growth and the consequences of the coronavirus pandemic, the likely persistence of geopolitical tensions, the digital transformation of the world economy, the growing policies for environmental restrictions, as well as the growth of markets for alternative energy sources and energy storage systems.
“Given the uncertainty of the external environment, business diversification is a key factor in hedging risks for Inter RAO Group. The strategic business model of Inter RAO Group aims at maintaining its presence in all links of the value chain: from designing and constructing energy facilities to selling electricity and heat to end consumers. This is an approach that ensures the most efficient management of the Group's assets", said Alexey MASLOV, member of the Management Board and Head of Strategy and Investment Division of PJSC Inter RAO.
The Group's key priority remains the growth of the company's shareholder value. Among the main activities contributing to the strategy are implementation of modernization thermal power plant projects (KOMMod), participation in the construction of facilities within the integrated territory development, including isolated energy districts, effective use of the accumulated investment funds within inorganic growth (M&A), development and expansion of the retail business. Development of power plant engineering and fulfilling of the state task of localizing the production of power equipment are considered as one of the important priorities in business diversification.
Inter RAO Group plans moderate activity in international operations, focusing on maintaining the positions already achieved in key markets for electricity exports.
New directions for potential development are digital transformation and the introduction of digital technologies in all key business processes of the Group, participation in the development of renewable energy sources, intensive involvement in sustainable development and social responsibility, improving global ESG ratings and reducing carbon emissions.
“In the coming period, Inter RAO Group plans to more than double the scale of its business and financial results. We will be allocating up to 1 trillion rubles to achieve these goals, which is made possible by factors such as the effective use of investments accumulated over the previous years of development. We will continue to strictly follow our dividend policy, thanks to which payments to shareholders will increase in proportion to the growth of financial results. The company will also continue to actively participate in digital business transformation projects", said Evgeniy MIROSHNICHENKO, member of the Management Board and the Head of Financial & Economic Center of PJSC Inter RAO.
Detailed information on the medium-term strategy is available on the website.
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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business.
The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 30.8 GW of installed power generation capacity.