The Inter RAO Group presented the company’s development strategy until 2025 with an outlook for 2030, which was endorsed by the PJSC Inter RAO board on July 31, 2020. The adoption of the new strategy marks a new phase of development aimed at ensuring efficient management of energy facilities and maintaining a leading position in the Russian energy sector.

All objectives of the previous strategy, adopted in 2010 and updated in 2014, have been successfully achieved. The company has strengthened its positions in various segments of the electricity sector and has become a diversified energy holding company that holds and manages a variety of assets. In 10 years, the company’s turnover has increased 15-fold (to one trillion rubles), and the EBITDA 13-fold (to 142 billion rubles), the installed capacity of the group more than threefold (to 32 GW). The company’s share of the retail market rose by more than 18 percent and the volume of foreign trade transactions rose by more than 20 billion kWh. The successful consolidation and improvement of investment efficiency have made the company one of the most important players on Russia’s energy market.

The new strategy aims to maintain and improve the diversified business model of the energy holding company and is being shaped by current external trends that could have an impact on the company. Among the biggest challenges are the slowdown in global economic growth and the consequences of the coronavirus pandemic, the likely persistence of geopolitical tension, the digital transformation of the global economy, increasing policies of environmental constraints, and the growth of alternative energy and storage markets.

“Given the uncertainty of the external environment, the diversification of companies is a key factor in hedging risks for the Inter RAO Group. The Inter RAO Group’s strategic business model aims to maintain its presence in all links of the value chain: from the design and construction of energy plants to the sale of electricity and heat to end-users. This is an approach that ensures the most efficient management of the Group’s assets,” said Alexey Maslov, head of strategy and investment at Inter RAO.

Increasing the company’s shareholder value remains the Group’s top priority. Key activities contributing to the strategy include the implementation of the thermal power plant modernization projects (KOMMod), the participation in the construction of facilities within integrated territorial development, including isolated energy districts, the effective use of capital accumulated from inorganic growth, and the development and expansion of retail. The development of power plant technology and the fulfillment of the state task of localizing energy equipment production are considered as one of the important priorities in the diversification of enterprises.

The Inter RAO Group plans moderate activities in international business and is concentrating on maintaining the positions already achieved in key markets for power export. New directions of development are the digital transformation and the introduction of digital technologies in all of the Group’s key business processes, participation in the development of renewable energy sources, intensive participation in sustainable development and social responsibility, the improvement of global environmental, social and corporate governance assessments, as well as the reduction of carbon dioxide emissions.

“In the coming period, the Inter RAO Group plans to more than double its financial and operating results. We will allocate up to one trillion rubles to achieve these objectives, which will be made possible by factors including the effective use of the investments accumulated in the last years of development. We will continue to pursue our dividend policy, which provides for increasing dividends to shareholders in proportion to the gains demonstrated in our financial results. The company will continue to participate actively in digital transformation projects,” said Evgeniy Miroshnichenko, Inter RAO’s board member and head of the company’s Financial and Economic Center.