Mechel’s power segment enables the Group to sell some of the steam coal it produces, profit from supplies of end product to third parties on the free market and supply the Group’s enterprises with electricity. The Group’s power assets are managed by Mechel-Energo OOO.
The power segment’s enterprises produce electricity, power, heat in hot water and steam, blast-furnace air, fresh service water, chemically purified water and compressed air. They also offer services in resale of energy resources and act as agents in electric power transmission.
Mechel’s power segment includes:
Mechel-Energo OOO is Mechel PAO’s subsidiary comprising the Group’s power assets. Mechel-Energo is definitively placed to ensure uninterrupted and efficient energy supply to all of Mechel Group’s companies, as well as to develop Mechel Group’s power segment.
Apart from managing Southern Urals Power Station OAO (Kaltan, Kemerovo Region), and Kuzbass Power Sales Company PAO (Kemerovo) Mechel-Energo OOO has energy generating assets and services heat grids wherever Mechel Group’s facilities are located.
Southern Kuzbass Power Plant
Southern Kuzbass Power Plant PAO is a thermal power plant in Kemerovo Region’s town of Kaltan, providing the Kuzbass energy grid’s off-peak load. It is the first power plant in Siberia to implement Soviet equipment for high steam settings (90 kgf per square centimeter, 510 degrees Celsius). The plant’s estimated electric output is 554 MW.
Southern Kuzbass Power Plant also provides hot water for central heating and water supply for the towns of Kaltan and Osinniki. The plant’s estimated heating output is 581 gcal per hour.
The power plant takes its water from the reservoir on the Kondoma River. The enterprise also has a clay quarry used in revegetation works on the station’s hydrotechnical facilities. Coal for Southern Kuzbass Power Plant is provided by Southern Kuzbass Coal Company PAO, which is part of the Group’s Mechel Mining company.
Kuzbass Power Sales Company
Kuzbass Power Sales Company is located in the Kemerovo region and is the largest power distributing company in Siberia with the «guaranteeing supplier» status, which means that the company must contract any customer who applies for its services.
Kuzbass Power Sales Company sells electricity on the retail market, supplying over 1 million individuals and 25,000 legal entities. The company sells electricity to some 90% of all regional consumers, including the public, to social infrastructure companies, housing and public utilities and large industrial companies. Due to its area of operation, its primary industrial customers are in the mining and processing industries. It supplies electricity to end-consumers directly and also through four regional agents.
The company’s well-developed service network, which includes four inter-regional departments (Central, Eastern, Northern and Southern) and 25 production divisions in Kemerovo Region, allows the company to provide easy access to all its clients. Kuzbass Power Sales Company’s chief goal is to ensure financial efficiency of its business while fully meeting electricity demands.