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.

In 2018, Rostelecom reduced its electricity consumption by 52,149,620 kWh (down 3.74%).

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.

Fuel and energy consumption by PJSC Rostelecom in 2016–2018
Fuel and energy item Unit of measurement Actual consumption in 2016 Actual consumption in 2017 Actual consumption in 2018 Savings percentage in 2018 by volume Possible reasons for the change
Electricity thousand kWh 1,682,578.00 1,394,200.29 1,342,050.67 — 3.74% Optimisation (reduction) of the real estate portfolio.
Upgrades of telecommunications equipment.
Disconnection of non-core loads (including unused buildings and premises).
Heat Gcal 1,243,338.59 1,167,448.54 1,128,010.78 — 3.38% Activities to reduce heat loss at facilities (the Cost Optimisation and Improvement of Fuel and Energy Management at PJSC Rostelecom project).
Optimisation (reduction) of the real estate portfolio.
Saving and metering (installation of automated heat metering units, weather-compensated controllers, and heat recovery systems).
Cold water cu m 2,776,347.84 2,584,312.82 2,296,051.11 — 11.15% Optimisation (reduction) of the real estate portfolio.
Saving and metering (installation of water meters)
Hot water cu m 374,867.28 216,495.18 200,006.27 — 7.62% Activities to reduce heat loss at facilities (the Cost Optimisation and Improvement of Fuel and Energy Management at PJSC Rostelecom project).
Optimisation (reduction) of the real estate portfolio.
Saving and metering (installation of water meters and weather-compensated controllers)
Natural gas cu m 38,316,914.00 30,540,204.00 27,208,191.49 — 10.91% Reduction in the number of boiler facilities, installation of more energy-efficient boilers.
Activities to reduce heat loss at facilities
Liquefied gas l 1,266,922.08 1,123,053.24 1,087,580.07 — 3.16% Reduction of the gas-powered vehicle fleet
Coal t 12,363.60 10,010.99 10,695.46 6.84% Higher number of abnormally cold days during the 2017/2018 winter season in the regions covered by the Ural Macroregional Branch and the Siberia Macroregional Branch, where coal-fired boiler facilities are used
Wood cu m 10,127.68 9,860.86 9,237.92 — 6.32% Optimisation (reduction) of the real estate portfolio
Fuel briquettes (pellets) cu m 485.20 474.78 503.00 5.94% Higher number of abnormally cold days during the 2017/2018 winter season in the regions covered by the Volga Macroregional Branch, where pellet-fired boiler facilities are used
Diesel fuel l 8,624,524.69 8,535,517.13 7,956,847.58 — 6.78% Replacement of boilers and diesel generators with more modern and energy-efficient ones
Gasoline l 25,774,005.88 24,447,231.10 28,644,554.40 17.17% Expansion of the vehicle fleet, increase in mileage per vehicle
Energy efficiency projects implemented in 2017–2018 under the Energy Saving and Energy Efficiency Action Plan
Name of project/activity Unit of measurement 2017 2018
Activity costs, RUB thousand Quantitative indicators (number of projects/facilities) Activity costs, RUB thousand Quantitative indicators (number of projects/facilities)
Installation of sensor-based lighting control systems facilities 6.00 1 4.50 3
Replacement of incandescent and fluorescent lamps with LEDs facilities 4,403.92 35 1,432.27 502
Repairs and upgrades of boiler facilities, replacement of boilers and equipment with modern, higher performance ones boiler facilities 24,001.62 62 14,476.16 46
Installation and upgrades of heat meters facilities 10,802.45 82 34,347.46 183
Installation/upgrades of automated heating control systems (weather-dependent automatics, temperature sensors, remote control systems) facilities 1,178.00 2 7,517.00 13
Repairs and upgrades of heating systems (radiators, heating units, heating pipelines) facilities 47,655.07 116 48,905.63 115
Upgrades of power supply systems facilities 8,140.63 10 0 0
Installation of automated controls on the air conditioning system facilities 4.20 1 0 0
Repair/revamp of the water supply system facilities 538.30 7 1,284.00 4
Installation of water metres pcs 248.90 39 352.44 9
Repair/upgrade of the gas supply system facilities 137.45 14 0 0
Repair/upgrade of gas metering units pcs 548.00 25 191.68 20
Upgrades of lifts to achieve a higher energy efficiency class facilities 0 0 2.00 5,434
Activities to reduce heat loss in buildings, including - - - -
Thermal insulation of doors pcs 148.10 7 1,565.02 36
Installation of PVC windows pcs 45,171.68 1,985 35,238.41 1,708
Thermal insulation of walls facilities 2,586.06 8 26,658.23 33
Insulation of heating pipelines facilities 1,026.60 27 210.00 1
Repairs and insulation of roofs facilities 26,971.40 41 25,946.02 44
Total 173,568.38 198,130.82

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.

Key energy saving and energy efficiency activities in 2018 (electricity consumption):
Energy consumption at PJSC Rostelecom by type of energy in 2016–2018
2016 2017 2018
Volume Energy consumption, MJ Total reduction in energy consumption in 2016, MJ Volume Energy consumption, MJ Total reduction in energy consumption in 2017, MJ Volume Energy consumption, MJ Total reduction in energy consumption in 2018, MJ
Fuel 3,333,193,615.47 2,936,455,748.72 396,737,866.76 - 2,993,054,593.00 -56,598,844.40
Electricity 1,682,578.00 20,676,528,011.00 -46,610,659.80 1,394,200.29 17,132,769,684.00 3,543,758,327.11 1,342,050.67 16,491,923,850.00 640,845,834.03
Heat 1,243.34 6,989,914,372.00 1,734,879,948.83 1,167.45 6,563,269,527.00 426,644,845.06 1,128.01 6,341,546,787.00 221,722,739.98
Target indicators for the energy saving and energy efficiency programme
Indicator Unit of measurement 2017 2018 2019 2021
actual actual plan plan
Specific electricity consumption per 1 sq m of gross area thousand kWh/sq m 0.155844 0.157176 0.14763 0.142918
Specific heat consumption per 1 sq m of gross area Gcal/sq m 0.130497 0.132109 0.12962 0.125483

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.

Energy efficiency of the Company’s buildings and offices, 2017–2018
2017 2018 Increase in 2018 vs 2017
pcs sq m pcs sq m pcs sq m
Buildings (offices) fitted with LEDs 866 - 1,182 968,661.1 36.49% -
Buildings (offices) fitted with weather-compensated (climatic) heating controllers 97 318,268.2 185 800,936.4 90.72% 151.65%
Buildings (offices) fitted with sensor-based lighting controllers 52 54,806.8 193 118,598.5 271.15% 116.39%
Buildings (offices) fitted with controlled shut-off valves on heating appliances 272 454,695.6 510 580,952.8 87.50% 27.77%
Data centres and server rooms fitted with free cooling systems 60 - 91 37,014.3 51.67% -
Buildings (offices) fitted with water saving devices (sensor taps, dual flush toilets, etc.) n/a n/a 21 36,426.4 - -
Buildings (offices) fitted with integrated electronic heat and energy control systems (Smart Office) n/a n/a 41 171,245.9 - -
Buildings (offices) fitted with structural materials that reduce heat loss (PVC windows, wall and roof insulation, etc.) n/a n/a 914 1,128,117 - -

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.

«Our extensive, modern fibre infrastructure and vast experience in delivering government contracts in the Vologda Region and in Russia’s North West make us well-placed to carry out full-scale upgrades of street lighting systems. Rostelecom cooperates with reliable technology partners — equipment manufacturers and software developers — to implement turnkey projects. Our arrangements do not require a customer to make any investments in a proposed project. Financial benefits are achieved through resource efficiency, ensuring payback of our investments and generating savings for the customer.

Andrey Ganov, Director of Rostelecom’s Vologda Branch

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.

«We have high expectations for the energy service contract with Rostelecom. And we already see the first results: Vyatskiye Polyany has once again become a bright town. Street lamps now have a longer service life. We have responded to citizens’ requests to improve the lighting in certain streets and enabled manual control of the lighting system depending on weather and during festivities. We will use the funds saved through smart power consumption to finance other municipal needs.»

Valery Mashkin, Mayor of Vyatskiye Polyany

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

«Rostelecom will bring all stakeholders of the Digital Moscow Region programme together onto one platform, thus strengthening control over budget spending. The regional government will get a tool to monitor activities carried out by budgetary institutions to optimise energy consumption in the housing and utilities sector. In addition, energy efficiency assessments will become more comprehensive.»

Leonid Neganov, Energy Minister 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.