DTEK’s thermal power plants reduced electricity supply

Main factors influencing the performance indicators:

— electricity consumption in Ukraine dropped by 5.8% or 7.8 bln kWh due to the recession in industrial production on the back of military hostilities at Donbas;

— DTEK Skhidenergo reduced electricity generation by 12.8% or 1.6 bln kWh due to military hostilities in Donetsk and Lugansk regions;

— DTEK reduced electricity exports by 6.7% or 498.3 mln kWh;

— Kyivenergo reduced electricity supply by 19.4% or 374.7 mln kWh as natural gas supply was limited by the government;

— Botievo wind farm’s electricity generation grew by 133.2% or 258.4 mln kWh due to the commissioning of the plant’s second stage in 2014.

Main projects:

The Company has finalised the upgrade of units 8 at DTEK Dobrotvirska TPP and 3 at DTEK Zaporizka TPP. Technical re-equipment of units increased their installed capacity by 10 MW (to 160 MW) and by 25 MW (to 325 MW), accordingly. The manoeuvrability widened to 160 MW.

Technical re-equipment of units prolongs their service life by at least 15 years, increases their capacity, and expands the flexibility range. The modernisation reduces specific fuel consumption for electricity generation, resulting in lower production costs.

Since 2012, as part of retrofits, electrostatic precipitators at all DTEK’s TPP units are reconstructed to comply with the dust emission level stipulated by Directive 2001/80/ЕС.

Electricity transmission by networks

In January-September 2014 DTEK’s distribution companies reduced electricity transmission via networks by 5.9% to 40 billion kWh YoY.

Main factors influencing the performance indicators:

— industrial enterprises of Ukraine reduced electricity consumption by 6.1% or 3.7 bln kWh;

— electricity supplies by DTEK Power Grid and DTEK Donetskoblenergo decreased in total by 13.2% or 2 bln kWh, as the military hostilities in Donetsk region brought down demand from different group of consumers;

— electricity supply by DTEK Krymenergo dropped by 7.4% or 256.4 million kWh as there was no seasonal growth of demand and consumption by agricultural and industrial consumers went down.

Main projects:

— DTEK Donetskoblenergo and DTEK Power Grid, as well as repair teams of DTEK Dniprooblenergo, in spite of military actions conduct emergency recovery works to restore electricity supply to the populated areas.

— DTEK Dniprooblenergo: implementation of the CRM and common contact centre project aimed to improve the customer service quality is in progress. One of the first fully automated call centres in Ukraine already provides services to approx. 350 thousand clients in its area of operation;

— Kyivenergo: reconstruction of the Olenivska substations has been completed, which will improve sustainability of electricity supply and ensure that new customers from the Podil district and central part of Kyiv will be able to get connected to the grid.

— retrofit of the 330 kV and 110 kV outdoor swithgear at CHPP-5 aimed to compensate for the power shortage at the energy unit covering the central parts of Kyiv and to create some reserve to be able to connect new customers is in progress;

— reconstruction of unit 1 at CHPP-5 is in progress aimed to increase both electricity and heating capacity of the unit to 112.9 MW and 174.9 Gcal/hour, respectively;

— new projects were launched to reduce gas consumption: higher heat generation at the waste incineration plant “Energia” from 6-7 ths Gcal to 100 ths Gcal; reconstruction and replacement of the obsolete parts of heating networks and other technical measures. The expected effect will be the reduction of natural gas consumption by 20 million cubic meters per year.