In order to form the effective mechanism for implementation of the innovation cycle providing favorable conditions for creation and promotion of high-technology equipment and advanced techniques on the constantly renewable basis, taking into account the decisions of the Commission under the President of the Russian Federation for Modernization and Technological Development of the National Economy, decisions of the Government Commission for High Technologies and Innovations, the Program of Innovative Development of JSC IDGC of the North-West for 2011-2016 was developed.

The Program of Innovative Development of JSC IDGC of the North-West for 2011-2016 was approved by the Company's Board of Directors on July 27, 2011 (Minutes No. 80/1). The purpose of the Program of Innovative Development is to implement high-technology equipment and advanced technologies, to create organizational and economic mechanisms for managing the reliability, safety and efficiency of electric grids in planning, designing, construction, technical maintenance and repair and operative control management.

This includes up-to-date scientific and methodological support of market relations in the industry and development of principles and methods of management, obtaining of patents, and development of standards, regulations and techniques.

The adjusted Program of Innovative Development of JSC IDGC of the North-West for 2012-2016 was approved at the meeting of the Board of Directors of the Company held on October 26, 2012 (Minutes No. 113/11).

The resolution of the Board of Directors of JSC IDGC of the North-West of October 26, 2012 (Minutes No. 113/11):

• approves the inclusion in the Program of Innovative Development of JSC IDGC of the North-West of activities for 2012 for the transfer, on the basis of the agreement for money donation for the purpose of creation of the Specialized Endowment Fund of the Skolkovo Institute of Science and Technology calculated as 0.5% of the net profit gained by the Company in 2011. In December 2012 monetary funds were transferred to the Specialized Endowment Fund of the Skolkovo Institute of Science and Technology in the amount of RUB 2.04 million.
• approves the adjustment of the R&D plan for 2012 to the Program of Innovative Development of JSC IDGC of the North-West. The adjusted R&D plan for 2012 includes 13 projects for the total amount of RUB 145.55 million.

In 2012 two agreements for performance of R&D works were concluded. The agreement renewed from 2011 on Development of the Methodology of Effective Management of Reliability of Electric Grids on the Basis of Statistical Analysis of Retrospective Information on Operation of Electric Equipment of JSC IDGC of the North-West was fulfilled in the 3rd quarter of 2012 for the total amount of RUB 1.0 million. The results of research and scientific analysis allowed to develop and to implement in Komienergo branch the following methods:

• a method for assessment of residual lifetime of operational transformer oils;
• a method for determination of a volume of materials, assortment and procedure for performance of works for recovery of lifetime of operational transformer oils;
• a method of selection of the system of actions aimed at the maintenance of satisfactory quality of operational oils.

In 2012 the Agreement on Optimization of the Structure and Technology of Production of an Outdoor Vertical-Break Disconnecting Switch for 10 kV (200, 400, 630А) with In-built Grounding Conductors not Requiring Blocking with Them was concluded with LLC Energomarket. The agreement the cost of which amounted to RUB 8.4 million was financed in 2012 for the amount of RUB 5.5 million. Under the Agreement patent No. 118791 of the Russian Federation (registered in the State Register of Useful Models of the Russian Federation on July 27, 2012) for the useful model "High-Voltage Disconnecting Switch". The patent holder is JSC IDGC of the North-West.

The new design of the 10 kV disconnecting switch is distinguished from the known models by its higher reliability. The switch does not require maintenance and is adapted to outdoor operations, including in icy regions, to the maximum extent. The main principle of the switch is that one main blade and one drive perform by turns two functions: disconnection (circuit breaking) and grounding of the conducting part, which increases safety of personnel and the electric grid. Regular disconnecting switches have main blades and grounding blades, with a drive installed for each of them. Using the disconnecting switch on 10kV lines will allow to increase the reliability of energy supply to consumers and reliability of distribution networks.

The Program of Innovative Development of JSC IDGC of the North-West was 92.7% fulfilled in 2012. The total costs on the program implementation amounted to RUB 2,402.3 million and costs on research and development activities (R&D) amounted to RUB 6.3 million.

List of New Equipment and Materials, New Technologies Implemented During Modernization, Technical Upgrade and Reconstruction

In 2012 in the course of reconstruction of facilities the Company continued works for replacement of morally obsolete equipment 0.4-150 kV suffering considerable physical wear and tear with modern equipment with advanced technical characteristics and a high degree of readiness to operate.

The source of financing of measures for implementation of innovative equipment is the Investment Program of JSC IDGC of the North-West. Expenses on implementation of innovative equipment provided in the Investment Program of JSC IDGC of the North-West amounted to RUB 814.9 million in 2012. Primarily, such expenses were related to installation of innovative equipment (SF6 and vacuum switches, reclosers, SF6 insulated switchgears, steel multi-faceted supports, application of protective and insulated cable).

For instance, in Vologdaenergo branch, in the reconstruction of SS 35/10 kV Kornilovo, modular distribution equipment (modular metal-clad switchgear) 35 kV manufactured by Tavrida-Elektrik was used on the basis of D-40Р-type cells combined with ODD and CDD 35 kV. The application of modular metal-clad switchgear ensures the minimum size of SS which allows for SS reconstruction without the necessity to expand the existing land plot.

In the course of capital repair of SS 110/10 kV Kalinino MKP-110/630 switches were replaced with SF6 dead-tank circuit breakers VB-110 manufactured by JSC High-Voltage Equipment Plant Elektroapparat. Spare parts and components of VB-110 switch do not require replacement or renewal due to influence of climatic and ecological factors of the environment during the entire service life. VB-110 switches are explosion- and fire-proof, with the useful life of 40 years. It practically does not require maintenance. The performance is ensured at the rated SF6 density which is automatically controlled in each pole by a density analyzer equipped with alarming and blocking devices.

Karelenergo branch implemented two major investment projects using innovative equipment:

• Reconstruction of the scheme of external electric supply to the Kizhi Necklace. Construction of OL-35 kV SS-78 Velikaya Guba — SS 35/10 Zharnikovo (technological connection of the Kizhi conservation area to the electric grid facilities of JSC IDGC of the North-West). Commencement of works — June 2011, completion of works — November 2012, the cost of works amounted to RUB 81,968,091.13, the cost of design and survey works amounted to RUB 5,467,830.33.
• Reconstruction of the external power supply scheme of the Kizhi Necklace. Construction of CL-10 kV SS 35/10 kV Zharnikovo-DS-10 kV on the Big Klimenetsky Island, CL-10 kV DS-10 kV on the Big Klimenetsky Island — Kizhi Island (technological connection of the Kizhi conservation area to the electric grid facilities of JSC IDGC of the North-West). Commencement of works — July 2012, completion of works — December 2012, the cost of works amounted to RUB 110,834,000, the cost of design and survey works amounted to RUB 3,883,000.

In Kolenergo branch the following new equipment which had never been applied before was installed in 2012:

• Arc protection system FVIP.423133.004.

The system is designated for identification of occurrence of an arc in cabinets of metal-clad switchgears (outdoor metal-clad switchgears), stationary one-sided metal-clad switchgears 0.4-35 kV and alarm initiation in the chain of automatics and relay protection for shutdown of the section.

• Media converters (transponders) FG-CWDM-2-TP-M.

They were installed within the framework of investment project "Construction of Fiber-Optical Communication Line for OL on the section of HPP-12 (Verkhnetulomsky village)-SS Allarechensky (Prirechny village) SS-20(Nikel village)" under Agreement No. 41/20-01-2011/17 of June 6, 2012 made with LLC TeleSvyaz-Polyarny on SS-82 and SS-20.

• SkyMAN equipment

SkyMAN is a universal multi-functional system of broadband wireless access for operators, state services, corporate customers and public security authorities.

The installation was carried out within the framework of investment project "Creation of the System of Broadband Data Transmission for Kolenergo Branch of JSC IDGC of the North-West".

In Komienergo branch, within the framework of investment project "Modification of the Main Scheme of SS 35/6 kV Vorkutinskaya with Replacement of Equipment and Transformers of 4х5.6 MVA with those of 2х16 MVA at SS 35/6 kV Vorkutinskaya" two dry transformers DTTHR 16000/30 were installed (manufactured by Starkstrom Geratebau concern).

In Pskovenergo branch a technological connection agreement had been fulfilled under which new equipment was installed: automatic voltage control unit on the basis of three single-phase voltage-adding power autotransformers 10 kV VDT/VR32-10-150.

Activities of Scientific and Technical Council

In order to improve technical activities, implement a unified technical policy, determine strategic areas of development of the electric grid complex in JSC IDGC of the North-West, the Scientific and Technical Council (STC) was organized. The work of STC is built based on the Regulation on the Company's Scientific and Technical Council. The Regulation on the Company's Scientific and Technical Council and its composition are approved by Order No.86r of April 22, 2010 given by the Deputy Director General, the Company's Chief Engineer.

In 2011 the representatives of firm manufacturing electrical equipment and service suppliers (CJSC OPTEN Limited, LLC Tomas Lutas, LLC Bolid, LLC Dinamika, LLC Sevkabel-Engineering, Engineering Center Energoservice) took part in the work of the STC as invitees.

STC carried out its activities on the basis of an approved plan. The following issues were considered at the meetings of STC:

• analysis of causes of technological disturbances (accidents) on electric equipment of JSC IDGC of the North-West for 2011;
• peculiarities of technological connection of consumers having small generation sources;
• consideration and approval of the program for renewal and modernization of the fleet of transformers;
• new methods of assessment of the quality of operational transformer oils as dielectric material ensuring reliability of 35-110 kV power transformers;
• effective methods of reduction of technical loss in distribution grids. Top-priority tasks relating to the reduction of commercial loss in the grid 10-0.4 kV;
• technical possibilities of information complex Forgaenergo and effective indicators achieved in Pskovenergo branch within the framework of application of information complex Forgaenergo;
• application of laser air scanning and other modern instrumental methods for evaluation of the technical condition of overhead lines;
• reduction of the cost of construction of OL-10 kV using metal multi-faceted supports through the example of electric supply organization in Abez village (Republic of Komi);
• increase of reliability of operation of PEX-insulated cable lines. Results of complex diagnostics in the course of operation. Standard for application and operation of PEX-insulated power cables 6-110 kV;
• approval of technical tasks for R&D for 2012-2013;
• problems of correct determination of the level of voltage induced on OLs under the conditions of influence of multiple factors;
• factors influencing decision-making on creation of TC ACS on substations determining requirements for telemechanics;
• key aspects of creation of electric power quality control;
• telemetry of substations and DP-6 (10) kV with realization of functions of electric power quality monitoring;
• resistive and combined grounding of 6-35 kV grid neutral: legal base, experimental research and practical implementation;
• results of implementation of Spektr 1-01 registers in Arkhenergo branch;
• circuit solutions for automation of substations in reconstruction and new construction and selection criteria;
• application of insulated cable SIP-7 in construction and reconstruction of OL-110 kV;
• application of insulated cable SIP-7 in construction and reconstruction of OL-110 kV;

In 2012 in all branches of JSC IDGC of the North-West technical councils functioned under the chairmanship of Chief Engineers of branches.