Regional power distribution holding company: a giant in Russia's power grid industry

Interregional Distribution Grid Company (IDGC Holding) is a major Russian power company. After merging with the Russian Federal Grid Company (FGC) in November 2012, it was renamed Rosseti. As a large enterprise integrating transmission and distribution networks, Rosseti enjoys a high reputation globally and ranked 762nd in Forbes' 2014 Global 2000 list. This article will delve into the history, business scope, operating model, and impact of Interregional Distribution Grid Company on the Russian and global power industries.

Company Profile

Founded in 2005 and headquartered in Moscow, the Regional Distribution Holding Company (IDGC Holding) initially focused on distribution networks, managing electricity distribution operations across multiple regions of Russia. Through the consolidation of various local power companies, IDGC Holding gradually expanded its business scope and influence. However, with ongoing reforms and developments in the power sector, the company merged with the Russian Federal Grid Company in 2012, forming the current Rosseti JSC (Rosseti Russian Grid Company).

Rosseti inherited IDGC Holding's core business: the operation and maintenance of transmission and distribution networks. Furthermore, the new company has taken on additional responsibilities, including modernizing power infrastructure, improving energy efficiency, and supporting the development of renewable energy. Today, Rosseti is one of Russia's largest power companies and a leading global grid operator.

Business Scope

Rosseti's business covers most of Russia and focuses primarily on the following areas:

• Power Transmission Network: Rosseti is responsible for the operation and maintenance of high-voltage transmission lines throughout Russia. These lines transmit electricity from power plants to substations in various regions, ensuring the security and stability of the power supply.
• Distribution Network: The company also manages a large number of medium and low voltage distribution networks, directly providing electricity services to residential, business, and industrial users. Through its efficient distribution system, Rosseti is able to meet the needs of diverse users.
• Technical support and services: Rosseti not only provides power transmission and distribution services, but also offers a variety of technical support and value-added services, such as the installation, maintenance and repair of power equipment.
• Renewable Energy Development: With the growing global demand for clean energy, Rosseti actively participates in the development and implementation of renewable energy projects, committed to reducing carbon emissions and promoting sustainable development.

Operating Model

Rosseti's operating model is based on the principles of efficient management and technological innovation. The company employs modern management systems and technologies to ensure the reliability and security of its power supply. Below are some key characteristics of Rosseti's operating model:

• Regional Management: Rosseti divides its business into multiple regional subsidiaries, each responsible for power operations and maintenance in a specific region. This regional management model helps improve management efficiency and response speed.
• Digital Transformation: The company actively invests in digital technologies such as smart grids, automated control systems, and data analytics platforms. The application of these technologies enables Rosseti to monitor and manage power networks more accurately.
• Customer-centric: Rosseti places great importance on customer needs and enhances customer satisfaction by improving service quality, optimizing billing systems, and providing diverse power solutions.
• Environmental protection: Throughout its operations, Rosseti has always been concerned about environmental protection and has strived to reduce the environmental impact of electricity production.

Company Achievements and Honors

Rosseti has achieved many remarkable accomplishments since its inception, some of which include:

• Global 2000 Ranking: Rosseti ranked 762nd in Forbes' 2014 Global 2000 list, highlighting its important position in the global power industry.
• Infrastructure modernization projects: Rosseti has successfully implemented a series of power grid modernization projects, improving power transmission capacity and reliability.
• International cooperation: The company actively participates in international power industry cooperation and exchanges, and jointly researches and develops new technologies with power companies in other countries.

Future Outlook

With changes in the global energy structure and technological advancements, Rosseti faces new opportunities and challenges. To address these changes, the company has formulated the following strategic objectives:

• Promote digital transformation: Continue to increase investment in digital technologies and build a more intelligent and automated power grid system.
• Promote the development of renewable energy: Accelerate the development and application of renewable energy projects to reduce dependence on traditional fossil fuels.
• Enhance customer service experience: Further improve customer experience through innovative service models and a convenient online platform.
• Strengthen environmental protection measures: Implement stricter environmental protection policies to reduce the environmental impact of power production.

Official website

Rosseti's official website is www.rosseti.ru . By visiting this website, you can obtain detailed information about the company's latest developments, business news, and investor relations.

Conclusion

IDGC Holding, a leading regional power distribution company in Russia's power grid industry, has successfully transformed into Rosseti through continuous reform and innovation. With its extensive business scope, advanced technology, and excellent management, Rosseti holds a significant position in both domestic and international markets. Looking ahead, with the continued development of the energy sector, Rosseti will continue to play a vital role, making even greater contributions to power supply in Russia and globally.