Energy Efficiency

Energy efficiency is a driver of digital economy and a critical element for improving production competitiveness. Rostelecom develops and actively implements energy saving and energy efficiency projects. Each of these projects is aimed at cutting electricity, heat, and water consumption, as well as reducing the usage of road, air, and all-terrain transport. The Company uses natural resources sustainably and upgrades networks and infrastructure by introducing more energy efficient equipment. PJSC Rostelecom seeks to reduce its energy consumption and greenhouse gas emissions and helps its customers to follow suit. Energy efficiency is one of the key focus areas outlined in Rostelecom’s Innovative Development Programme for 2016–2020. Energy efficiency is a critical component of developing smart cities within the Digital Economy of the Russian Federation national programme.

Centralised initiatives to improve the Company’s energy efficiency over the long term and reduce the environmental footprint include optimising and standardising the operation of communications networks. In particular, we implement projects to upgrade our data network and data centres, virtualise the infrastructure, and deploy remote equipment monitoring technologies. In addition, communications networks in rural areas are upgraded and warehousing logistics processes are optimised, driving cuts in the Company’s energy consumption. Rostelecom also seeks to reduce vehicle operating costs. Fleet optimisation, in its turn, helps cut the cost of fuel and lubricants, reduce waste generated by vehicle operation (such as batteries, tyres, used oils) and vehicle exhaust emissions.

In 2017, PJSC Rostelecom introduced its Energy Policy, setting requirements for managing the Company’s activities and promoting energy saving and energy efficiency. The Policy was developed to formalise the Company’s new principles and commitments on energy saving and energy efficiency, as well as relevant implementation methods and mechanisms. The document supports and promotes the deployment and improvement of the energy management and energy performance system within its defined scope and boundaries. The Company’s energy policy is focused on reducing the energy component of the cost of services and cutting operating expenses on the maintenance of buildings and electrical equipment across all Rostelecom’s core business lines.

The Company’s branches develop energy saving and energy efficiency action plans on an annual basis. A total of 461 activities were carried out in 2018, resulting in a year-on-year reduction in energy consumption of:

• electricity, by 52,150,000 kWh (3.74%)
• heat, by 39,438 Gcal (3.38%)
• cold water, by 288,260 cu m (11.15%)
• hot water, by 16,490 cu m (7.62%)
• natural gas, by 3,332,000 cu m (10.91%)

Total number of projects — 461, facilities covered — 674, total cost — RUB 218,874,000.

PJSC Rostelecom’s Energy Saving and Energy Efficiency Programme for 2019–2023 was developed in 2018 with the primary goal of reducing fuel and energy consumption and keeping down fuel and energy costs through a range of technical and organisational energy saving activities considering tariff growth and network expansion.

Energy saving is supported by the energy efficiency of the Company’s buildings and offices. Specifically, Rostelecom has been fitting out its premises with LEDs, weather-compensated heating controllers, water saving devices, and materials that reduce heat loss.

Note. The indicators shown are cumulative year-end figures.

Rostelecom presented energy efficiency projects for smart cities in Vologda

Rostelecom presented its projects to upgrade street lighting at the Regional Power Industry Investment Conference in Vologda. During a round-table discussion, Rostelecom’s specialists talked about energy efficient technologies offered by the Company to local authorities, businesses, and institutions, as well as the Company’s successful track record of performance under energy service contracts. Rostelecom views projects to upgrade outdoor lighting as a vital element of the Smart City programme. The Company replaces obsolete street lights with energy efficient dimming sodium-vapour lamps or LEDs (which change brightness when supply voltage changes) and rolls out an automated lighting control system. Smart street lamps and modern technologies help make city streets safer and reduce energy consumption.

Smart lighting by Rostelecom installed in Vyatskiye Polyany

In 2018, Rostelecom upgraded the street lighting network in Vyatskiye Polyany (Kirov Region) under an energy service contract signed by the operator and the local authorities. By deploying an automated street lighting control system and installing modern energy saving street lights, the municipality will cut street lighting costs by 70%. Over six years, at least 5.7 million kWh will be saved. Rostelecom’s specialists replaced old street lamps with 2,333 LEDs which switch on instantly (unlike conventional lamps), consume several times less power, and have a service life exceeding 10 years.

Rostelecom won a tender organised by the Ministry of Energy of the Moscow Region

Rostelecom won a tender for the development and support of the Automated Power Metering System of the Moscow Region. The digital provider upgraded the system and integrated it with the unified information and analytical system for utilities, as commissioned by the Ministry of Energy of the Moscow Region. The integration of platforms and databases enables automation of the process for creating energy performance certificates (energy passports) for regional budgetary institution properties.

Rostelecom will take charge of asset energy management in the Tula Region

In Deсember 2018, LLC RTC-EnergoBalans, a Rostelecom subsidiary, and the Ministry of Education of the Tula Region signed an agreement for cooperation in developing potential specifications for an asset energy management system of the Tula Region. The agreement defines the energy management system as a tool enabling the use of a centralised regional digital platform ensuring collection, processing, storage, and analysis of energy metering data, which implies the subsequent introduction of an energy consumption monitoring system. Educational institutions in the Tula Region were selected for piloting the system. The parties agreed to identify priority tasks and approaches for transformation of the information and communication infrastructure of the energy management system, including technology transformation and support of management decision-making.

Use of alternative energy sources

The use of alternative energy sources by the Company is limited and focuses mainly on power supply to feed the telecommunications equipment installed in sparsely populated areas far from power grids. These energy sources include solar panels, hybrid wind and solar power systems, wind plants, micro turbines, and wind and diesel battery units. As at the end of 2018, alternative energy sources were used in the following Rostelecom macroregional branches:

• Solar panels: South MRF — 15 facilities, Ural MRF — 18 facilities
• Wind plants: Siberia MRF — 2 facilities
• Microturbines: Far East MRF — 19 facilities
• Hybrid wind and solar power systems: North East MRF — 34 facilities, Far East MRF —17 facilities

There were no changes in the Company’s renewable fleet composition vs 2017. The aggregate capacity of our renewable energy sources amounts to 368 kW.