The research and technology development policy pursued by the Holding Company focuses on the following key areas: enhancing production efficiency, cost reduction, creating the conditions necessary for steady development of the unified energy system and maintenance of energy safety and industrial and environmental security.

The research and technology policy seeks to:

• forecast developments in the energy industry;
• develop new technologies for electricity and heat production;
• extend the lifetime of equipment;
• ensure reliable operation of the UES and power plants;
• deliver research and technology, methodology, and organizational support for cost-reduction and energy saving programs;
• reduce hazardous emissions, develop and implement environment protection technologies;
• establish market structures and mechanisms for organizing and financing research and development in the energy sector;
• organize review and development of technical documentation for the electricity industry;
• commercialize intellectual property.

Extension of Equipment Lifetime and Safety

The most effective way to increase efficiency of power plants in the circumstances of insufficient investment is to extend the service life of overage equipment. In 2002, research organizations completed a project commissioned by RAO "UES of Russia" called "Concept of Extending Service Life of Critical Thermal Power Equipment at Power Plants". The Concept assesses the possibility and conditions for further operation of aged equipment. A new technique has been developed to evaluate the degree of danger of using TPP equipment.

In 2002, a comprehensive survey was carried out to examine the condition of equipment at 500-800 MW power generating units. The survey showed that it would be possible to extend service life of the equipment by 20%-25% compared to the design life. A technical audit of power facilities was performed at 60 lower-capacity power plants in 2002. As a result of the audit, equipment lifetime was extended.

Development and Implementation of Advanced Know-How, Technologies and Equipment

In line with the energy strategy of Russia providing for broad use of combined-cycle gas turbine generators, OAO RAO "UES of Russia", GP NPKG "Zarya"-"Mashproekt", OAO "NPO "Saturn" continued their effort to develop the GTE-110 gas turbine and PGU-325 generator unit based on the former.

In 2002, successful tests were carried out on two GTE-110 gas turbine generator units, which confirmed strength properties of the generators. Detailed design documentation was prepared for the production of a test model of the GTE-180 gas turbine unit at OAO "LMZ" and OAO "Aviadvigatel".

Severo-Zapadnaya CHPP is continuing trial operation of the PGU-450 combined-cycle gas turbine.

In 2002, work was continued on the pilot circular boiler, E-820-140, of 820 t/h steam capacity. The boiler has been developed under the Federal Target Program "Fuel and Energy" for the purpose of refining new solutions for developing boilers to be used in large power units burning Kansk-Achinsk coals.

In 2002, the plants manufacturing generating equipment continued their work to develop new kinds of turbine generators. AO "Electrosila" designed, produced, and tested the principal model of TZFG-160-2M turbine generator with indirect air-cooling. This generator is to be installed at Severo-Zapadnaya CHPP of OAO "Lenenergo".

Using the research results of the three-stage combustion method, Taganrog Boiler Plant "Krasny Kotelshchik" together with VTI developed modernized boilers, TP-80M and TP-87M, designed for burning the low-reactivity coals produced in Kuzbass.

In a joint effort with Siberian installation companies and the power plants owned by OAO "Kuzbassenergo", Ordzhonikidze Engineering Plant based in Podolsk carried out the redesign of boilers burning high-reactivity coals of "G" and "D" grades. Implementation of the method using simplified three-stage combustion helped to significantly reduce nitric oxide emissions to the atmosphere.

The Company began using the system of black oil-free ignition and stabilisation of the coal-dust flame by means of electric arc plasmatrons. The black oil saving in just one ignition of a 200 MW generator at Gusinoozerskaya TPP is 114 tons.

Ecology and Environment Protection

As a response to the task given by the RF President to tighten the standards regulating hazardous emissions to the atmosphere, the Company developed two documents, "Instruction for Controlling Hazardous Air Pollutant Emissions from CHP Plants and Boiler Houses" and "Methodology for Setting Technical Standards on Air Pollutant Emissions from Operating Boilers", and submitted them for approval to the Ministry of Natural Resources of the Russian Federation.

Ecological feasibility studies are being conducted for the construction of new boilers at Kashirskaya TPP, Kharanorskaya TPP, and Novocherkasskaya TPP.

The Company has developed a program for technical refurbishment of the energy industry for the period ending in 2015. The Program recommends the use of scrubbing technologies to ensure that the regulatory requirements for environment protection are complied with.

In accordance with the plans for ensuring compliance with MAE (MAD), thermal power plants take measures to reduce pollutant emissions by using the new technologies developed by the industry's research institutes.

Despite the increased load of TPPs, the environment protection measures taken in the power sector helped to reduce the hazardous emissions to the atmosphere by approximately 70 thousand tons.