GEN’S MISSION IS BEING
ACCOMPLISHED BY
PEOPLE – EMPLOYEES
ABOUT THE GEN GROUP
AND OUR RESULTS IN 2015
S K U P I N A
OUR KEY GOALS ACHIEVED
DESPITE TOUGH MARKET
CONDITIONS
The 2015 business year was marked by tough conditions in the wider European
electricity market, which affected Slovenia's energy companies as well. In the company GEN and the GEN Group, we rose to the biggest challenge – sharply declining
electricity prices on European power exchanges – by streamlining and optimizing our
operations. Complex measures coupled with stable operation of our production facilities enabled us to achieve results that surpass our original targets for 2015. We managed to get closer to meeting the projected targets from the revised plan for 2015,
making up for some of the poor hydrology that persisted throughout the year.
The business results of the company GEN energija and the GEN Group for 2015 are proof that
despite the difficult market and operating conditions we were good at keeping the operating
and business risks in check. The following key accomplishment should be pointed out:
•
With competitive production costs, Krško Nuclear Power Plant (NEK), our largest electricity generating unit, helped keep electricity prices affordable for residential consumers
and contributed to making the entire economy more competitive while accounting for
a significant proportion of the country's electricity output; the power plant exceeded its
production targets in 2015. Another milestone is the obtained approval to extend NEK's
service life until 2043.
•
On account of not-so-good hydrological conditions, particularly in contrast with the
record year 2014, all the GEN Group's power plants on the Sava River, both in the company Hidroelektrarne na Spodnji Savi (HESS) and Savske elektrarne Ljubljana (SEL),
recorded lower electricity production outputs while maintaining a safe, reliable and
environmentally friendly operation thanks to consistent investments in knowledge and
equipment.
•
Nearly EUR 70 million was spent on capital expenditures and investments. The most
important ones include the technological upgrades at NEK, continued construction of
Brežice Hydroelectric Power Plant, and preparations for the replacement of a backup
gas-fired generating unit at Brestanica Thermal Power Plant. With an impeccable start-up
track record, the latter in 2015 again fulfilled its role in helping ensure the stability of
Slovenia's electric power grid.
•
To streamline the production and optimize operating costs across the Group's power
plants, in 2015 we carried out all the necessary technical and organizational activities for
implementing direct remote control over the power plants on the lower Sava River (Boštanj HPP and Arto - Blanca HPP) from one central location, the Control Centre at Vrbina.
Our employees have been and will continue to be the cornerstone of what we do. Highly
professional, motivated, qualified, committed, flexible, and focused on the long run, they are
essential to ensuring a bright future for our Group.
Martin Novšak
General Director, GEN energija d.o.o.
• EUR 69.33 million
• 40,078 GWh of
for R&D and capital
expenditures and
investments
electricity sold
OUR RESULTS
IN 2015
• 3,125 GWh
• 5,370 GWh generated by NEK,
of electricity
generated
half of which is available to
the company GEN
• EUR 15.3 million
• nuclear safety
and operational
readiness:
net profit
our top business
priorities
• successfully
completed
• 428 GWh
maintenance
outage at NEK
generated by
large HPPs
• high reliability of TEB
start-ups for ensuring
ENVIRONMENTAL
RESPONSIBILITY
BUSINESS
EXCELLENCE
• 99.7% of the electricity
generated came from
low-carbon sources
OPERATIONAL
EFFICIENCY
• 1,186 employees, of
which more than 60%
national power grid
stability
with at least higher
education qualifications
S K U P I N A
• continued paving of the
road for making a final
decision regarding the
JEK 2 project
• 7,250 visitors to the
• Intergovernmental Committee’s
approval to extend NEK’s
service life
CARE FOR
SOCIETY
• 75% of construction work
completed at the Brežice
HPP construction site
World of Energy, project
collaborations with schools
and other stakeholders
• 10,021 visitors to the
GEN Group’s power
plants
MISSION
Providing a reliable supply of low-carbon
electricity from sustainable and renewable
sources – nuclear and hydro – at competitive
prices. Generating value added for our
stakeholders by controlling the entire power
supply cycle:
• generating electricity in an environmentally
responsible, safe and reliable way,
• efficiently engaging in electricity trading
and sales, and
• systematically developing, and investing in
the maintenance of, existing generation
capacities and their expansion.
SECURING SUSTAINABLE
DEVELOPMENT
• upgraded management
systems ISO 9001, ISO
14001, OHSAS 18001
For the GEN Group, being responsible
in what we do means to be in constant
pursuit of sustainability focuses. We are
making every effort to:
• achieve operational efficiency and
business excellence,
• be environmentally responsible, and
• care for society, as these are the cornerstones
of operations of every individual company
and the GEN Group as a whole.
At the heart of GEN‘s sustainability-focused
strategic pillars are safety and knowledge,
the two biggest determining factors of
success in the following spheres: operational,
commercial, environmental and social.
• upgraded Web portal
on energy and the
energy industry
www.eSvet.si
OPERATIONAL
EFFICIENCY
AND BUSINESS
EXCELLENCE
We secure operational efficiency of our power plants by creating synergies between nature's resources and our engineering know-how and competences. Efficient generation of
electricity to trade and sell is a major driver of our business excellence.
We achieved our key goals in the areas of operational efficiency and business excellence in 2015.
Much of our success can be credited to our largest electricity generating unit, Krško Nuclear Power
Plant (NEK), which accounted for 86% of the Group's total annual electricity output. Despite an
unplanned shutdown and an extensive maintenance outage, during which we carried all planned
preventive maintenance operations, replaced the nuclear fuel and went through with investments
in technological upgrades to lay the groundwork for safe and reliable operation throughout the 28th
fuel cycle, NEK generated 5,370 GWh of electricity (half of which, 2,685 GWh, was available to GEN,
or the Republic of Slovenia) in 2015, topping its production targets. Another milestone is the obtained approval to extend NEK's service life until 2043.
Hydrological conditions throughout the year were much worse than in the record year 2014. As a
result, all the GEN Group's power plants on the Sava River, both in the company Hidroelektrarne na
Spodnji Savi (HESS) and Savske elektrarne Ljubljana (SEL), recorded lower electricity production
outputs. Still, unfavourable conditions aside, they generated 428 GWh of electricity in a safe, reliable
and environmentally friendly way.
With an impeccable start-up track record, TEB fulfilled its role in helping ensure the stability of Slovenia's power grid.
The production units of the
companies making up the GEN
Group generated a combined total
of 3,125 GWh of electricity in 2015.
NUCLEAR POWER PLANT
HYDROELECTRIC
POWER PLANTS
GAS-FIRED POWER PLANT
NEK
SEL
HESS
TEB
2,685 GWh
268 GWh
160 GWh
11 GWh
SMALL RENEWABLE
ENERGY SOURCES
2 GWh
Production portfolios of the companies making up the GEN Group: 3,125 GWh
Key information on the GEN Group
and the company GEN for 2015
against 2014
Despite the tough situation in the market
and subnormal hydrological conditions,
we generated more than EUR 15.3 million
in net profits at Group level in 2015.
* A change was introduced into the Slovenian Accounting Standards in 2015 that affects the recognition
of the companies NEK and GEN-I. The two companies,
previously jointly controlled and subject to the rules of
proportional consolidation, are now defined as a joint
venture (GEN-I) or as an investment in the equity of
another company in which GEN holds a significant interest (NEK). Despite the changed accounting standards,
there was no change in the business relationships
among the companies making up the GEN Group.
Item
Assets in EUR million
Group
Company
2015
2014
2015
2014
803.56
781.24
519.93
522.82
Equity in EUR million
685.37
675.71
432.53
425.68
Revenues in EUR million
184.53
186.40
175.54
175.25
EBIT in EUR million
16.78
20.82
13.55
17.29
EBITDA in EUR million
31.68
32.71
14.68
18.53
Net profit in EUR million
15.34
29.08
12.84
17.39
Value added in EUR million
45.59
45.55
17.50
21.42
Return on assets
1.94%
4.84%
2.46%
3.36%
Return on equity
2.25%
4.86%
2.99%
4.13%
ENVIRONMENTAL
RESPONSIBILITY
We generate electricity from low-carbon nuclear and hydro energy. This way, we are helping to reduce the average nationwide level of CO2 emissions per kWh produced. Our
power plants improve the quality of life for the local communities while having a minimal
impact on the environment and natural space.
As much as 99.7% of the electricity generated by the power plants of the companies making up the
GEN Group in 2015 came from sustainable and renewable sources: nuclear and hydro. In 2015, the GEN
Group again helped make a big step forward to achieving low-carbon electricity generation. Efficiently
and safely, and with a view to preserving and improving the quality of the environment and to mitigating climate change.
Environmental responsibility is an important element of the quality and safety assurance policy across
the companies making up the GEN Group, some of which have had their Environmental Management
Systems certified to the ISO 14001 standard for a number of years already.
Continued safety improvements are our top priority. Safety culture is the centrepiece of our responsible
operations at all levels. We live up to it largely by being responsible to the local population and the
environment in which we operate.
Breakdown of electricity
generation sources in the
companies making up the GEN
Group and in Slovenia for 2015 and
2014
Breakdown of energy sources tapped by
the companies making up the GEN Group
Breakdown of energy sources
on the national scale
TEB
SEL + HESS
14%
Small producers
0.3%
29%
17% 0.2%
21%
Comparison of CO2 emissions per kWh
generated in 2015
In terms of CO2 emissions, the production portfolios
of the companies making up the GEN Group are
environmentally acceptable and oriented towards
sustainability by comparison with the national
portfolio of electricity generation sources. On the
national scale, thermal power plants, at 1.2 kg CO2 /
kWh, were again the largest source of emissions per
kWh produced in 2015. That is almost three times
the national average, which is 460 g. By contrast,
the average CO2 emissions per kWh generated by
the companies making up the GEN Group, whose
main energy sources are low-carbon nuclear and
hydro, is a mere 3 g CO2 /kWh.
Companies
making up the
GEN Group
National
average
Coal-fired
thermal
83%
40%
NEK
Nuclear
86%
41%
Hydro
1%
2014
2014
2015
1%
Thermal
38%
29%
2015
0.003 kg CO2 /kWh
0.460 kg CO2 /kWh
1.200 kg CO2 /kWh
CARE FOR
SOCIETY
Safety and knowledge are the common denominators of our responsibility in the operational, business, environmental and social senses.
As far as safety goes, ensuring nuclear safety is our top priority. The safety culture has been incorporated into all decision-making and work processes across the companies making up the GEN Group.
Systematically, we modernize equipment and we foster and improve the safety culture and awareness of our employees. On account of such measures, NEK ranks in the top 25% of nuclear power
plants worldwide in terms of operational safety and stability. Safety considerations are also given
priority in preparing for the project to build a second nuclear power plant unit (JEK 2), as well as in
other strategic development projects of our Group.
By providing ongoing education and training opportunities for our 1,186 employees, we make
sure knowledge is strengthened and expanded. Also, we promote the knowledge of energy and
the energy industry among our key stakeholders through various projects and activities, which is
important groundwork for building the energy future of Slovenia in a responsible way.
Over 60% of the GEN Group's 1,186 employees have at least higher education qualifications. The key
areas requiring highly qualified human resources are nuclear engineering, nuclear energy, electrical
engineering, nuclear physics, mechanical engineering, and economics.
Employee qualifications in the
companies making up
the GEN Group:
More than 60% of the 1,186 employees
have at least higher education qualifications. Our activities, operations, and
strategic plans and development are
based around knowledge, professional
competence, and honouring the
achievements of science.
21
31
doctors of science
masters of science
728
458
other
employees
with Level 6/I,
6/II, 7, 8/I and
8/II professional
qualifications
126
2-year higher education degree
389
university bachelor’s degree
161
3-year higher education degree
We make every effort to spread the knowledge of energy and the energy industry in Slovenia's society. We know full well that the fulfilment of the GEN Group's mission very much depends on the
perception of issues and challenges of future energy supply. We have stepped up cooperation with
schools from across Slovenia.
Our educational and awareness-raising activities in 2015:
• 7,250 visitors to the World of Energy, our interactive multimedia learning centre on energy and energy technologies,
• 10,021 visitors to the GEN Group's power plants,
• 14,100 new users of the www.eSvet.si portal on energy and the energy industry.
STRATEGIC
DEVELOPMENT FOCUSES
OF THE GEN GROUP
We are seeking to build a secure, low-carbon and
competitive energy future for Slovenia.
The GEN Group's achievements to date form a solid
foundation for the national economy. We generate
value added for our stakeholders by controlling the
entire power supply cycle.
Our 2015 operational and business results, together
with strategic development plans and investments,
form a solid basis for building a safe, secure, low-carbon and competitive present and future of energy
in Slovenia.
Brežice HPP construction site
Our strategic development plans and investments
focus on:
• continued construction of HPPs on the lower
Sava River,
• continued technological upgrades to NEK,
• replacement of gas turbine units at TEB,
• preparations for the construction of HPPs on the
middle course of the Sava,
• planning for the JEK 2 project.
Mokrice HPP simulation
JEK 2 PROJECT
(dodatna slika render JEK 2)
The GEN Group's central and most complex development project is the planning and preparation
for the construction of the second nuclear power plant unit (JEK 2) in Krško, coupled with the development of knowledge and human resources.
The project is currently at a stage where the owner, the Republic of Slovenia, will need to take a clear
position on the matter. What needs to be made is a strategic decision on the energy future of Slovenia.
ENVIRONMENT AND CLIMATE-FRIENDLY
GENERATION OF ELECTRICITY
• optimal solution for complying
with environmental
requirements and standards
• nationwide reduction of
CO2 emissions
• reduced amounts of existing
and projected future
radioactive waste
SAFE AND RELIABLE SUPPLY
OF ELECTRICITY
BENEFITS OF
THE JEK 2
PROJECT
SOCIAL SYNERGY
• possibility of recovering and reusing
useful heat
• a safe and reliable domestic
energy source (8–12 TWh
per year)
• competitive, predictable and
stable prices of electricity
• improved technology
(third-generation reactor)
• compliance with the
highest international
safety requirements
• opportunity for participation for the
Slovenian economy
• positive effects on the nation's economic
development and standard of living
JEK 2 project simulation
Nuklearna elektrarna Krško d.o.o.
Savske elektrarne Ljubljana d.o.o.
Electricity generation
Electricity generation at hydroelectric
ARJE, analize in raziskave na
področju jedrske energetike, d.o.o.
at a nuclear power plant
power plants
S K U P I N A
www.nek.si
www.sel.si
GEN energija d.o.o.
GEN-I, d.o.o.
Hidroelektrarne na Spodnji Savi, d.o.o.
Vrbina 17, 8270 Krško, Slovenia
Telephone: +386 7 49 10 112
Fax: +386 7 49 01 118
[email protected]
www.gen-energija.si
Electricity trading, sales and purchasing
Electricity generation at hydroelectric
ZEL-EN,
razvojni center energetike d.o.o.
www.gen-i.si
power plants
Research and development for the
www.he-ss.si
energy industry
Services for the nuclear power industry
www.zel-en.si
Termoelektrarna Brestanica d.o.o.
Srednjesavske elektrarne d.o.o.
Electricity generation at a thermal
Electricity generation at hydroelectric
power plant, a standby energy source
power plants
for the power grid
www.teb.si
Nuclear Power Plant
THE GEN GROUP'S ELECTRICITY GENERATION UNITS
Thermal Power Plant
Hydroelectric Power Plants
Moste Hydroelectric Power Plant
Hydroelectric Power Plant under construction
Vrhovo Hydroelectric Power Plant
Mavčiče Hydroelectric Power Plant
Medvode
Hydroelectric Power Plant
Boštanj Hydroelectric Power Plant
Arto - Blanca Hydroelectric Power Plant
Krško Hydroelectric Power Plant
Krško Nuclear Power Plant
Brestanica Thermal Power Plant
Brežice Hydroelectric Power Plant
THE GEN GROUP‘S
PRESENCE IN ELECTRICITY
MARKETS AND POWER
EXCHANGES
Published by: GEN energija d.o.o., Vrbina 17, 8270 Krško
Conceptual design and texts: GEN energija d.o.o. and Consensus d.o.o.
Creative design, layout and production: KOFEIN dizajn
Photographs: Jaka Babnik, GEN photo archive, HESS photo archive
Circulation: 500
Krško, May 2016
www.svet-energije.si
www.esvet.si
www.gen-energija.si
The Annual Report 2015 of the company GEN and the GEN Group
is also available online at letnoporocilo.gen-energija.si
Presence in the power exchange
Presence in wholesale electricity markets
Presence in retail and wholesale electricity markets
Small Hydroelectric Power Plants
Small Solar Power Plants