Investment Activities

GRI 203-1

Investment activities are one of the key areas of the general development strategy of the Company and is intended to ensure the growth of operating profit.

Investment activities are aimed towards augmenting the reliability and enhancing the operation of the power grid complex, as well as reducing losses in power grids.

Progress on the investment programme

Indicators	UoM	Period
Indicators	UoM	2022, actual	2023, actual	2024, actual	Δ 2024/2023, %
Amount of funding	RUB million incl. VAT	4,813	5,417	6,569	121
Capital investment utilisation	RUB million excl. VAT	4,050	3,445	5,214	151
Commissioning as fixed assets	RUB million excl. VAT	3,417	3,523	4,878	138
Commissioning as a part of fixed assets of transformer capacities	MVA	325	115	269	234
Commissioning as part of fixed assets of power transmission lines	km	594	681	1,391	204

The volume of investments in 2024 is mainly directed to two types of activities, namely, to finance investment projects for grid connection – RUB 4,092 million including VAT, or 62% of the total volume of investments, and to finance investment projects for renovation, upgrade, retrofitting – RUB 1,395 million, including VAT, or 21% of the total volume of funding.

The majority of investments made within the area of grid connection operations went towards executing the agreements for the grid connection of a subsidised group of customers with connected capacities of up to 150 kW. The amount of funding for these activities in 2024 totalled RUB 2,991.2 million, or 73% of the total funding for grid connection.

The main volume of investment activities related to renovation, upgrade and retrofitting included financing of measures for development and upgrade of electricity (capacity) metering, namely RUB 645 million, or 46% of the total retrofitting and renovation financing.

Structure of capital investment financing in 2024, RUB million, incl. VAT

Investment programme financing sources in 2024, RUB million, incl. VAT and in %

Long-term investment programme

Investment Programme of PJSC Rosseti South for 2025–2028

Indicators	UoM	2025	2026	2027	2028
Amount of funding	RUB million	7,496	5,883	4,101	3,787
Capital investment utilisation	RUB million	6,646	5,094	3,138	2,601
Commissioning as fixed assets	RUB million	4,624	5,663	5,070	2,712
Commissioning as a part of fixed assets of transformer capacities, MVA	MVA	98	170	106	66
Commissioning as part of fixed assets of power transmission lines	km	526	472	478	355

Parameters of investment activities as envisaged in the long-term investment programme

Financing for the period of 2025 to 2028, RUB million, incl. VAT

	Astrakhanenergo	Volgogradenergo	Kalmenergo	Rostovenergo	Rosseti South
2025	3,046	1,240	190	3,021	7,496
2026	2,979	560	125	2,220	5,883
2027	921	731	125	2,324	4,101
2028	921	731	125	2,010	3,787

Changes in commissioning of power transmission lines for 2025–2028, km

	Astrakhanenergo	Volgogradenergo	Kalmenergo	Rostovenergo	Rosseti South
2025	145	112	52	216	526
2026	181	55	44	192	472
2027	189	90	44	156	478
2028	112	60	44	139	355

Changes in capacity commissioning for 2025–2028, MVA

	Astrakhanenergo	Volgogradenergo	Kalmenergo	Rostovenergo	Rosseti South
2025	49	9	1	38	98
2026	10	3	1	156	170
2027	82	3	1	20	106
2028	11	3	1	52	66

The long-term investment programme for 2025–2028 envisages capital investment of RUB 17,479 million (excluding VAT), financing – RUB 21,267 million (including VAT), commissioning of fixed assets – RUB 18,069 million. Between 2025 and 2028, it is planned to re-build and renovate 1,831 km and commission 440 MVA of transformer capacity.