Managers for sustainable electric power industry of tomorrow

To be able to lead a large-scale technological overhaul of the electricity generation sector and actively operate in energy markets, it is necessary to substantially increase the professional level of management. Moreover, there is no doubt that the social responsibility of power engineering as a vital infrastructure industry will only continue to increase, competition will intensify while the existing shortage of knowledge will grow. This is happening amid overall instability, uneven and chaotic demand for energy on the part of economic systems. On the other hand, energy consumers, investors and society as a whole are putting an increasing emphasis on reliability, pricing transparency and environmental impacts. The study provides substantiation and a new research and methodology platform for forward-looking education of energy managers. Its purpose is to equip professionals with knowledge and competencies that they will need for working in emerging technological and organisational and economic systems that will be based on new principles and will function in a turbulent external environment. The global energy education is used as an example of building educational content and methodology for the forward-looking training of future energy leaders. © 2018 WIT PressACKNOWLEDGEMENT The work was supported by Act 211 Government of the Russian Federation, contract № 02.A03.21.0006

A methodological framework for organizational risk management in energy companies

Energy production has always been associated with a number of operational (technological) risks as well as risks resulting from external events. A large number of tools has emerged recently that utilize complex software solutions to minimize such risks, which shows in a significant reduction of failures at energy facilities in the past few years and a growth in the key performance indicators of energy businesses. The most difficult ones to assess and prevent are organizational risks. The probability of such risks increases alongside the progress of structural transformations in the global energy sector. Such risks, despite their internal nature, are capable of triggering serious deformations within the governance system of an energy company and, given the specific features of the energy sector, lead to a sharp performance drop across the industry. The article presents a methodological framework for operational risk management in energy companies that is based upon the idea of identifying the priority results of companies’ performance. The proposed methodology is essentially about forming the risk space of an energy company and using it as a basis for quantitative assessment of the probability of risk events. This will in turn make it possible to identify critical organizational risks, assess anticipated damage and think of preventive management impact to offset the risk events. © 2017 WIT Press.ACKNOWLEDGEMENT The work was supported by Act 211 Government of the Russian Federation, contract No 02. A03.21.0006

Comparison of competitiveness of grid companies and industrial companies' own generating units

In contemporary Russia, the existing electricity supply model is gradually changing, the focus shifting to the priority development of small-scale distributed power generation. It is, however, impossible to significantly reduce grid electricity consumption in the near future. Conditions for grid companies are getting increasingly competitive, which may result in higher tariffs for consumers. At the same time, the development of small-scale power generation in this country is chaotic and its efficiency has never been adequately compared to that of grid electricity consumption. The article looks at factors and conditions that may help boost grid companies' competitiveness. It also provides a new developed methodology for comparative analysis of the efficiency of the construction of a company's own generating unit as opposed to consuming grid electricity. The article contains estimates of the cost of connection technologies to the grid and electricity tariffs for different scenarios of development. The article looks at the potential for tariff reduction and reveals peculiarities and the cost of construction and operation of generating units for industrial companies. The methodology was tested in Chelyabinsk Region which is served by JSC "Interregional Distribution Grid Company of Ural". © 2017 WIT Press

Factoring environment into electrification management in a region

Electrification is an integrated continuous process of production, transmission, distribution and use of electric power in a region's economy. Analysis of global trends shows that demand for electric power as the most advanced and flexible energy carrier has been growing as many countries are in transition to a new industrial landscape. Along with that, the energy provision of industrial and domestic processes is becoming more intellect-intensive, while environmental issues are receiving special attention. This determines the relevance of the study. The authors have designed a methodology for factoring the environment into regional electrification programs. The methodology includes the following steps: ranking and selecting facilities to be electrified based on the criterion of minimal values of the 'electricity-for-fuel substitution coefficient'; application of the energy and economic effect to financially compensate for environmental impacts; introduction of demand side management programs that help improve the environmental situation in the region. An 'ideal' structural model of electrification is proposed for regions with high eco-loads. The model combines a method for selecting facilities to be electrified, pro-active energy conservation, adding more energy installations utilizing carbon-neutral fuels to the power generating system. © 2018 WIT Press.ACKNOWLEDGMENT The work was supported by Act 211 Government of the Russian Federation, contract No 02. A03.21.0006

Fulfilling the potential of nuclear power industry through demand side management

The study analyzes the feasibility and ways of including nuclear power plants (NPPs) in demand side management (DSM) programs. Reducing peak load on energy systems is of high interest to nuclear energy managers because the load grows and so does the share of base load, providing an impetus for the construction of new NPPs in regions. The authors propose the principles and mechanisms of DSM and a system of organizational and economic measures that would encourage energy companies to get actively engaged in DSM programs. It is shown that it is appropriate to consider DSM as a way of improving the flexibility characteristics of new NPPs, such as their increasing their capacity factor, boosting output while reducing costs and, therefore, increasing their profitability. © 2017 WIT Press

Proactive management in the power industry: Tool support

Increasingly dynamic, non-linear and all too often chaotic changes in the global environment and tougher competition, including at the geopolitical level, call for radical transformations in strategic management of the power industry. The article provides the results of a study into proactive actions of energy company management, which are becoming increasingly important. The article offers a framework of concepts relating to proactive management and sums up ideas of a number of authors on diagnostics of weak signals as possible harbingers of threats to sustainable power industry development. The authors have determined a general approach to mechanisms of threat identification and developed methodological principles of shaping a corporate management model capable of reacting to new challenges. The article provides a thorough study of some components of the model and an assessment of factors that ensure successful implementation of the authors’ conceptual solutions in energy companies. © 2017 WIT Press.ACKNOWLEDGEMENT The work was supported by the Act 211 Government of the Russian Federation, contract № 02.A03.21.0006

Information and simulation model for complex regional transport

The main difficulties related to the economic study of traffic problems are caused by the large number of interrelated factors, hierarchical and competing goals of economic subjects, social and environmental problems of the territory, the degree of administrative independence of its individual parts, as well as the importance of regional economy within the country. The application of rigorous mathematical tools to assess trends in the development of transport infrastructure in these conditions is very limited and is usually reduced to the justification of a few scenarios. The paper offers specific methodological approaches, analytical apparatus with a number of the analyzed conditions and factors, a logical basis for the formation of scenarios in the design of transport systems, including the railway infrastructure of the region. The novelty of the approach used is a combination of accounting features of the territory from the perspective of mineral resources development, and quantification of long-term needs in the freight made on the balance calculations basis. © 2015 WIT Press

Imitation forecast of railway system operation in a macroregion

The article describes an analytical and information system that was used for forecasting the operation parameters of the railway system in a macroregion of Russia - the Far North. Its economy is focused on the extraction and processing of hydrocarbons, metal production, construction materials, and generate large volumes of exports and inter-regional cargo flows. The region covers an expansive territory and is characterized by harsh weather, an extreme environment, and uneven development of the transportation network. Research into the transportation issues of economic development in such areas presents a challenging task because the region is unique, statistical data are incomplete and classified; there is a hierarchy of businesses and organizations operating in the region that have their own goals and objectives and compete against its other; the region is plagued with social and environmental problems and a lack of administrative integration between individual districts. Using rigorous mathematical tools for assessing transportation infrastructure projects under such conditions is only limited to finding solutions to stand-alone problems and scenario comparison. A model of the applied system that is outlined in the article makes it possible to analyze specific projects of regional railway system development that take into account strategic priorities and goals of the state, social and economic development problems experienced by the neighboring regions, the oil and gas sector and major employers, as well as corporate goals of the sustainable development of railway companies. The application of the model over an extended period of time showed that the analysis of the structure of cargo flows and customers bound to junctions of the transportation network makes it possible to suggest what aspects of the railway infrastructure should be reorganized in line with the development dynamics of economic entities that consume transportation services. The study is built upon a number of projects that were implemented in the north of Tyumen Region and the Yamal- Nenets and Khanty-Mansi autonomous areas of Russia. © 2018 WIT Press.ACKNOWLEDGEMENT The work was supported by Act 211 Government of the Russian Federation, contract № 02.A03.21.0006

De mand-side management for energy in the region

The article deals with a promising approach to solving the problem of investment in the regional electric power industry - the application of demand-side management, the essence of which lies in proactive interaction of energy companies with customers, based on the balance of economic interests. The features of the concept and its tools are revealed, positive results of its implementation for energy market players and the region are shown, and examples of demand-side management programs are given. Institutional and mental barriers to effective implementation of demand-side management tools in power generation are analyzed. The article also proposes algorithms for implementing demand-side management programs in the region, and a mix of motivational activities that combines methods of administrative enforcement and economic stimulus for energy companies and consumers of energy and power, as well as guidelines on project funding and effectiveness evaluation

Visual analysis for conceptual design of complex systems

Managing the development of complex organizational, technological, and socio-cultural systems calls for the construction of conceptual models that would define the properties and links between the elements of the systems and focus the attention of decision makers on the most significant aspects. The authors propose the visual analysis method as a tool for the conceptual design of complex systems. The method is based on the building of a series of visual images that are associated with the purpose sustainable development and holistic representation of the system. At the initial stage, the general structure of a complex system is analyzed and the required degree of detail of its elements is determined. The system is then broken down into elements and a specific visualization tool is selected for each of them so that the properties of the systems that need improving are highlighted. Ultimately, a conceptual design of the system is created that suggests managerial solutions that meet the interests of the stakeholders. The method has been tested in a number of projects that were implemented with the purpose of ensuring the strategic leadership of major manufacturing companies. © 2018 WIT Press.ACKNOWLEDGEMENTS The work was supported by Act 211 of the Government of the Russian Federation, contract No 02.A03.21.0006