DTEK 2010 Operational Performance

Increased production by all DTEK’s enterprises is mainly related to implemented operational improvements and the large-scale long-term program of equipment modernisation and retrofitting as well as electricity consumption growth in Ukraine (9.2% in 2010).

Coal mining and coal processing

In 2010, Pavlogradugol and Komsomolets Donbassa Mine produced 19.2 million tonnes of coal, which is 8.7% above the previous year’s output. The relative share of thermal coal grades increased in the total coal production by DTEK’s enterprises.  Pavlogradugol and Komsomolets Donbassa Mine achieved the record output for the entire enterprises’ history extracting more than 15 and 4 million tonnes of coal per year, respectively.
One of the key factors in the record coal production was the introduction of efficient mining equipment and innovative know-how.
The 2010 18 roadheaders and 7 shearers, 13 belt conveyors and 7 scraper conveyors were purchased. Last year, Pavlogradugol also implemented some innovation projects. Thus, Stepnaya mine commissioned a new rock winding set, which accelerated preparation of the extraction front and reduced operation energy consumption by 25 %. This facility is an important part of the operational chain for extracting coal reserves from the mine field’s block containing over 37 million tonnes of coal. Blagodatnaya mine commissioned heat pump unit using mine water heat for the enterprise’s hot water supply, the most efficient one on the post-Soviet Union territory. In future, the heat pump unit will replace the coal-fired boiler, which will significantly cut operational expenses for hot water supply  and also decrease harmful emissions.
Last year, Komsomolets Donbassa mine upgraded its mining equipment pool: it bought 9 belt conveyors for the mine’s transportation chain, 80 pieces of 2KD90 powered roof supports, a 1К101 shearer, and a SP-251 scraper conveyor.
The coal production growth led to increase in processing of run-of-mine (ROM) coals was up 7.6% to 12.5 million tonnes. Last year, the Company’s coal processing enterprises implemented several  investment projects. The most important ones were introduction of OGSh-461 centrifugal separators at Dobropolskaya CPP; upgrading of a washery water-slurry circuit at Oktyabrskaya CPP and improvement of a washery water-slurry circuit at Mospinskoye CPP.
 
Electricity generation
 
In 2010, Vostokenergo increased electricity supply by 12.7% to 16.4 TWh. The company’s installed capacity utilization rate also improved year-over-year to 50.1% and remains the highest rate among Ukrainian TPPs. Last year, Dniproenergo supplied to the state-run Energorynok company 14.3 TWh, which was 21.6% above the 2009 level.
The 2010 modernisation and retrofitting of power units of Vostokenergo’s TTPs positively influenced improvement of their technical and economic indicators. Last year the enterprise continued with the second (power unit 1, Zuevskaya TPP; power unit 7, Kurakhovskaya TPP; power unit 10, Luganskaya TPP) and the third (power unit 4, Zuevskaya TPP; power unit 8, Kurakhovskaya TPP and power unit 13, Luganskaya TPP) stages of the power equipment upgrades. As the result, the installed capacity of unit 1 at Zuevskaya TPP increased by 25 MW to 325 MW and that of unit 7 at Kurakhovskaya TPP by 15 MW to make it 225 MW, and the flexibility range of the power units increased to 35 MW and 55 MW respectively. Retrofitting of unit 10, Luganskaya TPP, started in December 2010, and it is planned to complete it in August 2011. In 2010, the boiler reconstruction were partly completed and the electrical equipment replaced at unit the 4, Zuevskaya TPP (the third stage of Vostokenergo’s Retrofitting Programme). The majority of tenders were held and contracts concluded on the fourth stage of the retrofitting (power unit 3, Zuevskaya TPP; power unit 6, Kurakhovskaya TPP and power unit 11, Luganskaya TPP).
In 2010, 18 of 25 installed power units of Dniproenergo TPPs were repaired. Works on extending the service life and improving reliability of the boiler-turbine equipment (including the fall-winter load maximum) were carried out. Retrofitting of power unit 9 at Pridneprovskaya TPP and power unit 3 at Krivorozhskaya TPP is nearly completed, and their commissioning is scheduled for the second half of 2011.
 
Electricity sales and supply
 
In 2010, Service-Invest and Energougol ENE purchased in total 13.3 TWh ( annual increase 12.6%) of electricity from Energorynok SE .
During 2010, DTEK’s power supplying companies continued upgrading their existing equipment and installing new equipment as well. Energougol ENE assembled 26 km of 0.4 kW power line, using the self-supporting insulated conductor, which helped considerably improve reliability of power supply to consumers and ensure uninterrupted supply. Two 6 kV lines were laid to Oktyabrskiy Rudnik mine and Skochinskogo mine to secure a reserve power supply of the mines for emergencies.    
Last year Service-Invest reconstructed the 110 kV outdoor switchgear at the following substations: Donetskaya 110 kV, Chulkovka 110 kV, Ugledar 110 kV and the 35 kV switchgear of Druzhkovka 110 kV substation. Two power transformers 40 MVA each were commissioned at Styla substation of 110 kV. The 12 km long power line Amvrosievka 330-Metallist (35 kV) was also reconstructed.  
On January 1, 2011, Service-Invest was the first company in Ukraine to register its Automatic System of Power Consumption Commercial Accounting with Energorynok SE.  
 
Exports
 
In 2010, DTEK Trading , coal trading arm of DTEK, traded coal in domestic and foreign markets. Its main consumers in Ukraine are Ukrainian power generating companies, the largest iron and steel works and other industrial companies. Last year DTEK Trading exported about 2m tonnes of coal, which is twice as much as in 2009 (764 thou. tonnes), and the coal was supplied to consumers in Turkey, Bulgaria, Poland, Romania, India, USA and Brazil. Furthermore, the enterprise imported 1.3m tonnes of coal to be consumed by DTEK’s TPPs.
Starting January 2010, DTEK supplies electricity to consumers in Eastern Europe - to Hungary, Slovakia, Romania and Belarus. Last year the Company exported 1.21 TWh of electricity.
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and preparation, electricity generation and distribution.
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five coal preparation plants.
The power generation business of DTEK is represented by Vostokenergo and the associated Dniproenergo Company, where DTEK owns 47.55%.
Service-Invest, PES Energougol  and the associated Donetskoblenergo Company, where DTEK owns 30%,  represent the electricity sales and supply business of DTEK.
DTEK also holds a 39.98% stake in Kyivenergo, which provides a full cycle of energy supply to Ukraine’s capital, with a unified process for production, transport and supply of heat and electric energy.