Renewable Energy Sources
The Company’s objective in the field of renewable energy is to increase the competitiveness of LUKOIL Group through the achievement of sustainable development goals, of which implementation of renewable energy projects for the production of green energy is an integral part.
The key renewable energy tasks include:
- implementation of commercial RES projects, including with the involvement of government
supportCapacity supply agreement for qualified generating facilities based on renewable energy sources (RES CSA).;
- reduction/prevention of GHG emissions; and
- synergy from the construction of RES facilities at existing oil and gas production plants and refineries.
Projects based on wind and solar plants are implemented to supply “clean” electricity to external consumers. A small portion of energy is used by LUKOIL Group entities to generate heat based on solar collectors and to produce electric power based on photoelectric modules.
In 2019, a significant investment project for the reconstruction of the Belorechenskaya HPP (Krasnodar Territory) was completed. The 48 MW plant uses a derivative scheme based on the difference in elevation between the Belaya and Pshish rivers. As part of the project, two hydroelectric units were fully replaced, and the rated capacity of each was increased from 16 to 24 MW. As a result, the service life of the hydropower plant was extended by 40 years, and its reliability and environmental safety were enhanced. The efficiency of using the water energy was increased due to the use of cutting-edge technologies. In addition, comprehensive measures to upgrade almost all auxiliary systems were taken. After the reconstruction, the net supply of environmentally friendly electric power at the plant will increase by almost 80% and constitute about 260 million kWh per year, which will prevent emissions of at least 130 thousand tonnes of СО2E per year.
We intend to continue implementing “green” power projects. In the reporting year, the Company was developing prospective plans of implementing RES projects to be reflected in the Strategic Program of LUKOIL Group, as well as projects for the construction of SPP at the sites of the Volgograd Refinery and Saratov plant. The top-priority project is the construction of Volgograd SPP-2 with the capacity of 20 MW. The construction of the facility is expected to receive state support for generation by renewable sources (RES CSA).
We expect to perform FEED activities for the construction of a wind power plant with the capacity of 50 MW in the vicinity of the Tsimlyanskaya HPP (Rostov region), including wind monitoring, selection of sites and capacity supply options. Another proposed investment pattern is the upgrade and efficiency improvement of hydroelectric assets. Options of advancing the hydroelectric cluster in the vicinity of the Krasnopolyanskaya HPP are being examined, including projects to reconstruct a small HPP on the Beshenka river (up to 2MW) and build the Krasnopolyanskaya HPP-2 (up to 24 MW).
In order to develop renewable energy in Russia and provide the industry with qualified personnel, with the assistance of LUKOIL, the basic department “Renewable Energy Sources” was created at the Gubkin Russian State University of Oil and Gas.
|Total electric power generation from renewable sources (commercial and supporting generation), million kWh, including:||1,053||1,365||1,110|
|Total commercial electric power generation from renewable sources, million kWh, including:||1,053||1,365||1,100|
|Total electric power produced by commercial generating facilities of LUKOIL Group, million kWh||20,189||19,919||18,307|
|Share of commercial electric power generation from renewable sources in total electric power produced by commercial generating facilities of LUKOIL Group, %||5.2||6.9||6.0|
Note. Dynamics of electric power generation from RES indicators is conditioned upon changes to environmental conditions (water content of rivers, number of sunny/windy days, and other factors.), as well as upon HPP shutdowns for repair/reconstruction.