Environmental Impact (Natural Capital)

Ecological Policy

TVEL FC in its environmental activities is committed to promotion of environmental, nuclear and radiation safety.

TVEL JSC acknowledges that the package of engineering processes contributing to the production of items, including the use of nuclear, radioactive and other dangerous materials therein, shall not cause negative impact on environment and on human health.

Main strategic goals in the sphere of environment include promotion of environmental safety that is vital to sustainable growth of TVEL JSC and its subsidiaries, and reduction of negative impact of production and the supplied products on environment to the minimum acceptable level.

Excerpt from the TVEL JSC Environmental Policy

To improve the efficient environmental management, all enterprises of TVEL FC have organized divisions responsible for performance of operations in the sphere of environment protection.

Environmentally important enterprises of TVEL FC* Environmentally important enterprises of TVEL FC include: JSC AECC, JSC SGChE, JSC PA ECP, JSC UEIP, JSC NNCP, JSC CMP and MSZ JSC. issue annual public reports on environmental safety, to inform the stakeholders, partners, public, citizens and local self-government bodies, and publish them on Websites of the enterprises and the ROSATOM State Corporation in Section “Customers and Partners” — “Environmental Management”.

TVEL JSC Environmental Policy is the key corporate document that regulates the activities of TVEL FC in the sphere of environment protection and safety. TVEL JSC Environmental Policy is harmonized with the Principles of Environmental Policy of the ROSATOM State Corporation and its organizations.

Policy outlines the principles of Company’s activity on the sphere of environment protection and serves as the basis for setting the environmental goals and generating the Environmental Policy of Fuel Company for 2010-2015, including organizational, production and engineering arrangements with respect to environment protection.

In response to great attention paid to environment protection within the regions of presence, TVEL FC is continuously interacting with Stakeholders on the matters of environmental impact caused by the enterprises of the Company.

The following public hearings were held in 2013:

• May 16, 2013 — public hearings at JSC SGChE with discussion of the data for substantiation of the license to conduct activities involving the use of nuclear power (including records of the environmental impact assessment study (EIAS) for the establishment of a new conversion plant;
• May 24, 2013 (Angarsk) — public hearings dedicated to decommissioning followed by dismantling of vacant - buildings No. 802 and No. 804 on the site of JSC AECC;
• July 17, 2013 — public hearings at JSC SGChE with discussion of the data for substantiation of the license to conduct activities involving the use of nuclear power (including records of the EIAS) for the project “Creation of the Experimental Demonstration Complex Comprising of the Power Unit with Fast Reactor for SNF Conversion, Fabrication and Refabrication of Dense Fuel”;
• August 6, 2013 — public hearings at JSC VNIINM with discussion of the data for substantiation of the license to conduct activities involving the use of nuclear power (including records of the EIAS) for decom- missioning of the research Unit B.

In 2013, the enterprises of TVEL FC conducted the following operations in order to reduce environmental impact caused by their current production activities:

• JSC CMP completed reconstruction (reinforcement) of the existing tail storages No. 2 and No. 3 for safe storage of radioactive waste;
• JSC NNCP makes preparations for the construction of nuclear waste disposal facility for Shop 6;
• JSC SGChE completed reconstruction of Site 18 and Site 18a for deep storage of liquid radioactive waste;
• JSC AECC installed metering devices at hot water transfer coupling and service and industrial water supply pipelines;
• JSC UEIP optimized water disposal system thereby reducing the amount of waste water by 3 mln m³;
• JSC PA ECP modernized one refrigeration machine, etc.

Environmental Impact

No emergencies and incidents resulting in negative environmental impact occurred in 2013 at the enterprises of the Fuel Company.

Use and Processing of materials

The quantity of materials necessary for manufacture of products at TVEL FC enterprises is determined by the production program.

Enterprises of separation-sublimation complex are using uranium and synthetic materials. Enterprises of fabrication block are using raw materials represented by enriched uranium product obtained at the enterprises of separation-sublimation complex. Synthetic materials, ferrous and non-ferrous metals are basically used in manufacturing of gas centrifuges.

All raw materials used by the enterprises of TVEL FC are purchased. No renewable materials are used in production. For examples of the used materials see Table 40 below.

Industrial and Consumer Waste Disposal

In 2013, the enterprises of TVEL FC reduced total amount (297.3 thousand tons) of industrial and consumer waste by 19.2%.

The bulk of waste (86.6%) was represented by Hazard Class 5 (virtually non-hazardous) waste, such as ash slag resulting from solid fuel burning at the TPPs. Ash slag are dumped by the TPP and the bulk of other waste is forwarded to specialized organizations.

Waste reduction was caused by:

• scrapping the JSC PA ECP equipment dismantled in 2012; by the early 2013, all that scrap was forwarded to the third parties;
• fewer amounts of coal burned at the TPP due to the warm winter of 2012-2013, hence the fewer amounts of ash.

In 2013, the volume of generation of wastes that are the most hazardous for the environment and population was decreased at the TVEL FC’s enterprises by more than 2 times as compared to previous years.

In 2013, 5.5 thousand tons of materials that are recycled or reused wastes (5.2 thousand tons in 2012, 4.8 thousand tons in 2011) were used. The use of wastes is mainly organized at enterprises of JSC CMP, MSZ JSC and JSC UEIP, which in 2013 used in their production 55.5%, 24.4% and 2.7% of their wastes respectively.

Water consumption and water disposal

In 2013, abstraction of by TVEL FC enterprises decreased by 19.5% as compared to the previous year and was 565.4 mln m3. The main source of water abstraction is natural sources from which 533.4 mln m3 were abstracted, 32 mln m3 were abstracted from public and other water supply systems. The organization’s water abstraction has no material impact on natural water sources.

The decrease in volumes of water abstraction by the Fuel Company is mainly caused by the following:

• a decrease in water abstraction by JSC AECC, JSC SGChE and JSC CMP due to reduction of the electric supply program of JSC Irkutskenergo, the HPP of JSC SGChE and the HPP of JSC CMP;
• a decrease in water consumption by water consumers of the Fuel Company’s enterprises;
• restructurisation of the enterprises relating to the transfer of water abstraction facilities from the balance of the enterprises to the Fuel Company;
• reduction of water consumption for cooling equipment of the HPP of JSC CMP in connection with a reduction of the outside air temperature in quarter 2 and 3, as well as shifting two turbines to cooling condensers with return system water.

In 2013, the standard of water abstraction was set at 831.3 mln m3, the actual volume of abstraction was 68% of the set standard.

About 98% of consumed water is used by the TVEL FC’s enterprises for cooling the equipment.

In 2013, the volume of return water was 279.8 mln m3. The share of return water of the total amount of abstracted water was 49.5%, the share of reused water of the total volume of abstracted water was 11.1%.

There have been small fluctuations in water consumption in return water supply systems at the TVEL FC’s enterprises over the last few years.

In 2013, 450.3 mln m3 of water were disposed by the TVEL FC’s enterprises, while the standard is 732.5 mln m3. All water was disposed into natural water bodies. The volume of water disposal directly depends on water consumption.

In 2013, the volume of disposal of polluted wastewater by the TVEL FC’s enterprises decreased by 8%.

The change in the volume of wastewater is directly related to reduction of water abstraction by the enterprises of the Fuel Company. In addition, activities aimed at improvement of water resources accounting are carried out at the enterprises, which makes it possible to track parameters of impact on the environment more accurately and plan activities for protection of water bodies more accurately. At present, collection of information on total volumes of planned and unplanned disposals of wastewater, as well as on the quality of wastewater is not carried out.

Pollutant emissions

In 2013, total pollutant emissions into the atmosphere by the TVEL FC’s enterprises were 20.1 thousand tons (26% of the standard set by the TVEL FC for 2013), which is 18% less than in 2012.

The decrease in emissions was mainly caused by a decrease in the volume of fuel (coal and fuel oil) combusted at the HPPs of JSC SGChE, JSC CMP and JSC UEIP.

The difference between the set standards and actual emissions is explained by the fact that the main volume of permitted emissions is set for the HPPs based on their operation using hard fuel (coal) for the entire heating season. For purposes of minimization of the adverse impact, the TVEL FC resorts to using natural gas taking into account annual quotas of its consumption.

Emissions of ozone-depleting substances at the TVEL FC’s enterprises decreased in 2013 by 4% and amounted to 267.1 tons* From 2013, the gas Freon-13 has been included in calculation of the indicator. Indicators of past years have been recalculated using the new method. . The decrease in emissions was caused by modernization of equipment at the enterprises of the Fuel Company.

Sulphur dioxide is emitted in great amounts during combustion of hard fuel at the HPPs of the Fuel Company’s enterprises.

For the purpose of determining emissions of greenhouse gases, emissions of carbon oxide (СО) were taken into account, since carbon monoxide emitted into the atmosphere from man-made sources oxidizes to carbon dioxide. In 2013, carbon dioxide emissions of the TVEL FC’s enterprises were 1,156.1 tons, which is 22% more than in 2012. The decrease in emissions occurred due to a check of systems of the HHPs of the Fuel Company’s enterprises related to the use of backup fuel (coal and fuel oil). No accounting of indirect emissions of greenhouse gases is carried out at the TVEL FC’s enterprises due to the absence of corresponding statutory requirements.

The bulk of emissions of greenhouse gases is caused by emissions of power production facilities (HPPs, boiler houses) and transport. Transportations related to activities of the TVEL FC’s enterprises and workforce trans- portations have no material impact on the environment.

Transportation of hazardous cargoes and special cargoes is carried out by transport of the enterprises or third parties pursuant to licenses and taking into account requirements to organization of transportations.

For the purpose of reduction of the adverse impact on the environment, measures for scheduled replacement of morally and physically obsolescent motor vehicles with modern ones that meet exhaust toxicity standards, as well as for replacement of motor vehicles that have gas engines with motor vehicles that have diesel engines have been taken.

In the operation of the rolling stock, routes, working hours have been constantly adjusted and optimized, kilometers traveled and the complement of vehicles in the motor vehicle fleet have been cut down, which has resulted in reduction of total kilometers traveled and, therefore, reduction of the total consumption of fuel and adverse impact on the environment.

The relative impact of the Fuel Company’s enterprises on the environment in the regions of presence

The TVEL FC’s enterprises are located on lands that are owned by the enterprises, as well as on lands that are used on a leasehold basis and are owned by the Russian Federation. Industrial sites of the enterprises and adjacent areas are not areas which biodiversity is of high value, since they are not inhabited by animals and plants included in the IUCN Red List and the national list of protected species. In accordance with the RF Russian Federation nature protection laws, standards of admissible impact on the environment that ensure the quality of the environment are set for the TVEL FC’s enterprises.

Strict compliance by the Fuel Company’s enterprises with the standards of admissible impact on the environment ensures the absence of threats to the existence of animals and plants which habitats are in the area adjacent to the TVEL FC’s enterprises.

The impact of the enterprises on the environment of regions where they are located is in general less than 5% of the total impact of industry on the environment of corresponding regions. Figures of JSC PA ECP (4.8% of the total disposal of wastewater in Krasnoyarsk Territory), JSC CMP (4.3% of the total disposal in the Udmurt Republic), JSC AECC (3.3% of the total disposal in the Irkutsk Region) are close to the said impact. The 5% level has been exceeded by JSC SGChE (17.3% of total wastes, 65.6% of the total disposal of wastewater in the Tomsk Region). The share of the rest of the TVEL FC’s enterprises in the total impact of economic activities on the environment of regions where they are located is insignificant. The TVEL FC’s enterprises have no material impact on water bodies from which water abstraction is carried out. Water bodies that are sources of water supply of the Fuel Company’s enterprises have not been recognized to be especially vulnerable and are not included in the Ramsar List* The list of wetlands made in accordance with Convention on wetlands of international importance especially as waterfowl habitat (1971). .

In the river Tom, at the water use area of JSC SGChE, there is diverse ichthyofauna: salmon, sturgeon, cisco, cyprinid fish and spiny-finned fish, of which taimen, spotted sculpin, Siberian sculpin are included in the Red Book of the Tomsk Region. The highest category of fishery use has been assigned to the water use area of JSC SGChE by the Tomsk branch of Verkhneobrybvod Federal State Enterprise. To avoid adverse impact, in accordance with the regulatory and legal framework, the limit of water abstraction from this water body is set for the enterprise. Thus, water abstraction by JSC SGChE from the river Tom is limited and has no material adverse impact on this surface water body.

JSC AECC which is located in the Baikal natural area and is in the zone of atmospheric influence on the lake Baikal, understanding its responsibility for the preservation of the unique wildlife, monitors component of the natural environment as a part of industrial environmental control. No exceedence of controlled parameters within and beyond the sanitary protection zone has been detected in the reporting year.

In 2013, operating expenses of the TVEL FC’s enterprises for environment protection were 2,213.3 mln RUB. These expenses were used for financing both technical and organizational measures.

The bulk of expenses are related to carrying out activities for environment radiation safety assurance (RUB 1,059.2 mln). Considerable expenses are also related to protection and rational use of water resources (RUB 335.1 mln) and atmospheric air protection (RUB 187.7 mln).

The bulk of environment protection expenses of the TVEL FC fall on JSC SGChE, JSC UEIP and JSC CMP.

The total amount of payments for the adverse environmental impact decreased in 2013 by 10% as compared with the previous year and was RUB 24.9 mln

In 2013, there were no material fines or collections for compensation of damage caused by the environmental impact in respect of enterprises that are within the control circuit of the TVEL FC, no damage was inflicted on the environment.

Nuclear and Radiation safety

Assurance of nuclear and radiation safety (NRS) of facilities of the Fuel Company’s enterprises, prevention and exclusion of any possibility of inadmissible exposure of the personnel, population and environment to radiation are one of the priority types of the TVEL FC’s activities.

At the Company’s enterprises, systematic work for prevention and exclusion of radiation accidents, improvement of the stability of hazardous production facilities, training of personnel and special formations for accidents and emergencies.

Activities of the TVEL JSC and the Fuel Company’s enterprises are carried out in accordance with the laws of the Russian Federation pertaining to the use of nuclear power taking into account IAEA requirements.

The main program documents providing for realization of activities in the area of NRS are the Federal Target Program “Nuclear and Radiation Safety Assurance For 2008 and For the Period Until 2015” (FTP NRS) and “Principles of the state policy in the area of assurance of the nuclear and radiation safety of the Russian Federation for the period until 2025”.

In accordance with FTP NRS, carrying out of 38 activities at the Fuel Company’s enterprises has been planned for the period until 2015 in the amount of RUB 12.4 bln, including RUB 9.5 bln at the expense of the federal budget and RUB 2.9 bln at the expense of other sources.

Liquidation of 56 nuclear and radiation hazardous sites (NRHS), putting into operation 1.71 thousand m3 of capacities of radioactive wastes (RAW) repositories, putting 4.46 RAW power blocks into an environmentally safe state, as well as rehabilitation of 1,225.4 thousand m2 of radiation contaminated areas are planned.

Over the period of 2008-2013, works under 22 activities were accomplished. The total volume of works amounted to RUB 7.0 bln, including RUB 4.6 bln at the expense of the federal budget and RUB 2.6 bln at the expense of other sources. 46 NRHS were liquidated, 1.71 thousand m3 of capacities of RAW repositories were put into operation, 2.74 RAW power blocks were put into an environmentally safe state, and 55,28 thousand m2 of radiation contaminated areas were rehabilitated.

In 2013, works under the following 3 activities were accomplished:

• s. 32 of the FTP “Reconstruction of sites 18 and 18a in connection with prolongation of the operational lifetime of deep liquid radioactive waste repositories of JSC SGChE”;
• s. 157 of the FTP “Deep burial of liquid radioactive wastes with an increased content of the solid phase using the hydraulic fracturing method at JSC SGChE;
• s. 217 of the FTP “Reconstruction (reinforcement) of operational tailing dumps 2 and 3 for safe storage of RAW at JSC CMP”.

Works under the rest of the activities are still in progress.

In 2013, at the expense of special reserve fund 3 “Decommissioning and R&D” of the ROSATOM State Corporation for 2011, 2012, 2013, works under 30 activities were accomplished in the amount of RUB 904.7 mln, including under 23 activities that are not included in FTP NRS in the amount of RUB 468.5 mln

In addition, in 2013 works were accomplished under 19 activities in the amount of RUB 70.36 mln at the expense of funds in reserve 3 “Decommissioning and R&D” that remained available to the TVEL FC’s enterprises. As a result of accomplishment of works, planned target indicators determined for activities under FTP NRS for 2008-2015 were achieved for year 2013.

In 2014 and subsequent years, works for liquidation of the nuclear “legacy” will be carried on.

Areas contaminated with radionuclides are within the zone of professional responsibility of enterprises of MSZ JSC, JSC NNCP, JSC CMP and JSC SGChE. No industrial activity is carried out at the said enterprises, access to them is highly restricted.

In 2013, there was no contamination of new areas with radionuclides as a result of activities of the TVEL FC’s enterprises. All identified contaminated areas are a consequence of activities of enterprises that were intended for improving the defensive ability of the country during the period of creation of the “nuclear shield”.

As at the end of 2013, the total area of the TVEL FC’s enterprises that was contaminated with radionuclides and was to be rehabilitated was 13,600.3 thousand m².

In 2013, JSC NNCP carried out rehabilitation of 4,365.0 m2 of a radiation contaminated area (of which 3,131.0 m2 are newly discovered areas of contamination). Financing of these works was carried out at the expense of special reserve fund 3 (Decommissioning and R&D) of the ROSATOM State Corporation.

At the Fuel Company’s enterprises, an Automated Radiation Monitoring System (ASKRO) has been successfully functioning and has been constantly improved.

The enterprises’ ASKROs are a part of the Industry Radiation Situation Control Automated System (ОASKRO) of the ROSATOM State Corporation. ОASKRO is linked to the Unified State Radiation Situation Control Automated System (ЕGASKRO).

ASKRO control station function at all NRHS of the Fuel Company and are located at production sites, sanitary protection zones and monitoring zones (professional responsibility zones) of the enterprises.

The radiation situation is measured in real-time mode, data from monitoring sensors of the enterprises’ ASKRO is transmitted to the Situation and Crisis Management Centre of the ROSATOM State Corporation and are reflected at http://www.russianatom.ru/.

More information on assurance of the nuclear and radiation safety the TVEL FC’s facilities is available in the online version of the 2013 annual report.

In 2013, 73 inspections by state control (oversight) authorities were carried out at the TVEL FC’s enterprises, of which 51 inspections were carried out by the Federal Service for Environmental, Technological and Nuclear Oversight of Russia, 10 inspection — by FMBA, and 12 inspections — by the the Ministry for Emergency Situations (with respect to fire safety). It was noted in the opinions of the oversight authorities that, in general, radiation and nuclear safety at the Fuel Company’s enterprises complied with the requirements of standards and rules pertaining to the use of nuclear power.

There were no cases of forfeiture from the TVEL FC of licenses in the sphere of the use of nuclear power.

Preparedness for emergency response

In 2013, improvement of the system of prevention and response to emergencies of the site level (hereinafter EPLS) of organizations that are within the management circuit of the Fuel Company continued.

Tasks relating to planning and organization of activities for prevention of emergencies, assurance of the necessary level of professional training of managers of organizations, management bodies, preparedness of the EPLS means and resources for actions in this area of activities were accomplished.

Activities for realization of the first stage of «The concept of creation of a complex system of informing and notification of the population of a threat of occurrence of emergency situations» (minutes 4 dated June 18, 2013 of the State Commission for Prevention and Response to Emergency Situations and Assurance of Industrial Safety) were held.

The bodies of daily management of EPLS of the Fuel Company’s organizations carry out constant collection and analysis of information on the state of the environmental and anthropogenic situation at the areas of location of NRHS.

or purposes of improvement of the practical preparedness of EPLS of the Fuel Company’s organizations to response to emergency situations and fires, the activities were conducted:

• a division training (on 04.25.2013) for inspection of preparedness to seasonal dangerous phenomena with practical deployment of forces and means of the organizations and cooperating structures;
• 2 fire and tactical drills (on 06.06.2013 at JSC NNCP, on 05.04.07.2013 at JSC «SGChE») for the purpose of assessment of preparedness to liquidation of industrial and natural fires with a radiation factor and the efficiency of cooperation between the State Corporation ROSATOM, the Ministry for Emergency Situations of Russia and other agencies;
• 794 individual trainings held at the Fuel Company’s enterprises.

For the purpose of compliance with the requirements of regulatory documents of the Russian Federation Government and the State Corporation ROSATOM, unexpected fire drills with deployment of forces and means of EPLS and cooperating organization were held under the guidance of the TVEL JSC’s structural units.

On October 4, 2013, enterprises of the Fuel Company participated in the All-Russian Civil Defense Drill that engaged EPLS management bodies, forces and means of response to potential emergency situations, with organization of cooperation between local self-governing bodies and territorial bodies of the Ministry for Emergency Situations of Russia for the purpose of cooperative execution of tasks. The training proved the preparedness, working capacity and reliability of functioning of EPLS management and notification systems.

As a result of focused work for creation of conditions necessary for prevention of emergencies of the natural and industrial nature, they were avoided.

The work for improvement of EPLS is under close control of the management of the TVEL JSC and the Fuel Company’s enterprises and is aimed at assurance of the preparedness of management bodies, EPLS forces and means to actions at NRHS as intended.

Physical protection of nuclear facilities

In general, the state of physical protection at the Fuel Company’s enterprises is estimated as complying with the requirements of rules and regulatory documents of relevant agencies. In 2013, no facts of thefts or subversions in respect of objects of physical protection were discovered, there were no cases of failure to preclude unauthorized actions, deficiencies discovered during inspections held by relevant agencies and inspectorates are quite completely and immediately eliminated, the working ability of complexes of engineering and technical means and the preparedness of the personnel and security forces are at a sufficient level.

Improvement of physical protection systems was carried out in accordance with the approved plans. Financing of activities was carried out mainly at the expense of reserve 2 of the State Corporation ROSATOM and own funds of the TVEL FC’s enterprises. All activities were accomplished within set time periods.

With respect to countermeasures to the threat of nuclear terrorism, at all nuclear-hazardous facilities, anti-terrorism security certificates were developed and approved in accordance with the established procedure.

In compliance with Order of the State Corporation ROSATOM dated 11.15.2012 No.1-1054, in 2013, inspections of the state of physical protection at NRHS of the five enterprises of the Fuel Company were held by relevant agencies: JSC «VNIINM», MSZ JSC, JSC «SGChE», JSC UEIP and JSC AECC.

The best indicators were noted at JSC AEKKh where the security department had carried out substantial preparatory work, as well as proper cooperation of the personnel and security forces was shown in the course of conduct of an operational and tactical drill.

At the enterprises of JSC AECC, JSC UEIP and JSC «VNIINM», inspections were held by the department of compliance of the State Corporation ROSATOM for the intended use of financial means allocated for improvement of the physical protection systems.

Also, the enterprises were inspected by the oversight and inspection authorities: the Federal Service for Environmental, Technological and Nuclear Oversight of Russia and other authorized agencies. In total, 39 inspections were held at nuclear-hazardous facilities in 2013.

Energy Saving and Efficiency Improvement

The project for power consumption reduction and improvement of the energy efficiency of industrial enterprises of the ROSATOM State Corporation is one of the key projects for the purpose of achieving set targets pertaining to improvement of the industry’s competitive ability. The Fuel Company’s enterprises are pilot enterprises that are in the process of organization and implementation of an energy saving methodology and accounting in the industry in general, starting from energy studies, development of long-term programs and specific activities.

In 2013, power consumption at the TVEL FC’s enterprises was reduced by 20.2% (787 mln kWh or 2.8 mln GJ), heat energy — by 32.7% (1,339 thousand Gcal or 5.6 mln GJ) as compared to the base 2009 under comparable conditions* Adjusted with bringing compared power consumption indicators to the same volume of production and provided services. . The reduction in energy resources consumption (under conditions comparable with 2009) in monetary terms was 24.4% (RUB 1,951 mln), while the target indicator was 20%.

Reduction of energy consumption is not related to reduction of the volume of the TVEL FC’s production program and was achieved by way of realization of activities under the Program “Energy Saving and Efficiency Improvement” effective at the TVEL FC’s enterprises from 2011. In 2013, the volume of financing under the Program was RUB 1,847.5 mln

The main activities that were conducted by the TVEL FC’s enterprises and made it possible to achieve the planned target of reduction of energy resources consumption in 2013 were:

• creation of automated systems of commercial and technical accounting of various energy carriers;
• installation of variable frequency drives in various systems;
• modernization of lighting systems with transition to energy-saving equipment;
• replacement and modernization of energy-intensive technological and power equipment;
• decentralization of the compressor park;
• winterization of enclosure structures of buildings and structures.

Additional activities that were realized over the period of 2012-2013 and made it possible to considerably reduce the consumption of energy resources by the TVEL FC:

• modernization (replacement) of technological and power equipment: transition from gas centrifuges of the eighth generation to gas centrifuges of the ninth generation; replacement of induction caking furnaces with induction casting machines and resistance furnaces; change-over of gas centrifuges power supply to lower voltage by changing the magnetization algorithm in frequency transformers; change-over of cooling machines to a different type of coolant (freon 314A); replacement of thermal insulation in heat supply systems; liquidation of steamlines and other activities made it possible to reduce power consumption by 4%, heat energy consumption — by 5.7%;
• organizational and technical activities: deloading of ventilation and upper (ceiling) lighting during peak hours of power consumption; optimization of operation of the industrial pump plant; optimization of the equipment load; implementation of closed water circulation schemes in sublimate production plants and other activities made it possible to reduce power consumption by 5.1%, consumption of heat energy — by 0.2%;
• optimization (conservation) of production areas made it possible to reduce power consumption by 5.9%, consumption of heat energy — by 2.8%.

In 2013, realization of the project of the ROSATOM State Corporation for implementation of an automated energy efficiency control system at the TVEL FC’s enterprises was completely accomplished, which makes it possible to solve a range of the most important tasks of achieving real economic indicators of reduction of expenses for energy resources and improvement of the efficiency of activities in the medium term.

In 2013, as a part of activities for development and expansion of the Integrated Management System, the TVEL JSC and its enterprises entered into agreements for creation, implementation and certification of an energy management system on the basis of requirements of the international standard ISO 50001, which makes it possible to apply a system approach in the assurance of continuous improvement of energy characteristics, energy efficiency and energy saving.

In 2013, 55.5 mln GJ of primary energy sources were consumed at the TVEL FC’s enterprises in total, of which with a breakdown by sources: natural gas — 27.2 mln GJ; coal — 28.0 mln GJ; fuel oil — 0.3 mln GJ.

The TVEL FC’s enterprises purchase primary sources of energy from third party suppliers.

In 2013, the volume of consumption of electric power and heat energy by the Company’s enterprises in money terms was RUB 3,925 mln and RUB 1,321 mln respectively (under comparable conditions of 2009)* No accounting of energy consumption in money terms with a breakdown by primary sources is carried out by the Fuel Company. .

In 2013, there was practically no change in indirect energy consumption* Indirect energy consumption, according to guideline GRI G3.1, shows the volume of energy spent for production of electric power, steam, heat energy and other types of intermediate energy consumed that are consumed by the reporting company and are purchased from third parties (i.e. are not produced within the company).

In 2014, as a part of activities for improvement of energy efficiency, the following is planned:

• reduction of energy resources consumption by the TVEL FC’s enterprises (under conditions comparable with year 2009) by 23%;
• creation, implementation and certification of an energy management system on the basis of requirements of the international standard ISO 50001;
• continuation of realization of the Program “Energy Saving and Efficiency Improvement” at the TVEL FC’s enterprises;
• conduct of a new energy study in accordance with the requirements of article 16 of Federal Law dated 23 november, 2009 No. 261-FZ “On energy saving and improvement of energy efficiency and on amending certain enactments of the Russian Federation”.