Inter RAO - History

History

Inter RAO was established in 1997 as a subsidiary of the Russian unified power company RAO UES. Its initial focus was international energy trading.

In 2002, Inter RAO started exporting electricity from Russia and generating its own electricity using a rented power generation unit at Irikla Thermal Power Plant. In 2003, Rosenergoatom acquired a 40% stake in Inter RAO, and the company became the sole exporter of Russian electricity.

In 2005, Inter RAO made several acquisitions:

• 50% stake in Ekibastuz GRES-2 Power Station
• 25% plus 1 shares North-West Thermal Power Plant
• 70%stake in TGR Energy
• 51% stake in Moldavskaya GRES

In the same year, Inter RAO co-founded Sangtuda 1 Hydroelectric Power Plant in Tajikistan. In 2006, Inter RAO Group acquired 100% stake in Electric Power Grids of Armenia.

In early 2008, Inter RAO obtainted listings on the Russian stock exchanges MICEX and RTS. As a part of its reorganization, Inter RAO received several Russian power generation facilities including Sochi Thermal Power Plant, North-West Thermal Power Plant, Ivanovo CCPP and Kaliningrad CHPP-2. In the same year, Inter RAO purchased the remaining 49% stake in Moldavskaya GRES.

In following years, the Government of Russia transferred the power companies shares remaining after the reform of RAO UES in the property of state-owned companies RusHydro, FGC UES, Rosimushchestvo, and Rosneftegaz to Inter RAO. That included transfer of 41% stake in Irkutskenergo, 65.8% of OGK-1, 3.24% of OGK-4, 26.43% of OGK-5, 24.9% of TGC-6, 34.21% of TGC-7, 30.54% of TGC-11, 20.24% of Kuzbassenergo, 21.27% of Bashkirenergo, 14.48% of Sangtuda 1 Hydroelectric Power Plant (in Tajikistan), and 100% of Razdan Thermal Power Plant (in Armenia).

In 2009, Inter RAO shares were included in the MSCI EM Index. In the end of 2009, INTER RAO was ranked fifth in Standard & Poor's informational transparency rating of the Russian energy companies. At the same time, Inter RAO kept developing other lines of business, mainly engineering and power generation equipment. In 2010, Inter RAO established joint ventures with General Electric and WorleyParsons.

In 2011, INTER RAO started to design a unified management structure for its Russian power generation assets. In February 2011, Inter RAO established Inter RAO - Management of Electric Power Plants, a fully owned subsidiary appointed as a sole executive authority of OGK-1, OGK-3 and INTER RAO - Electric Power Plants (another subsidiary established in 2011 as a holding for North-West Thermal Power Plant, Kaliningrad CHPP-2, Ivanovo CCPP and Sochi Thermal Power Plant). In March 2012, Inter RAO announced that it will reorganize its Russian power generation assets and consolidate them under its Inter RAO - Electric Power Plants Subsidiary. As the result, all major Russian power plants owned by Inter RAO will be consolidated under a single entity.