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TGC-14 is the generating company of Zabaykalsky Krai and Buryatia. It produces electricity and heat for Chita, Ulan-Ude and other cities of the region, where district heating is the only practical way to get through the winter. Its shares trade on the Moscow Exchange under the ticker TGKN.
The company runs on coal — unlike the gas-fired plants of central Russia. Coal is cheaper than gas per unit of heat, but it requires storage yards, transportation and ash handling, while environmental requirements for coal-fired generation are getting stricter.
Revenue comes from sales of electricity and capacity on the wholesale market and from heat supplied at a regulated tariff. The heating season in Zabaykalsky Krai is long and bitterly cold, so the share of heat revenue here is higher than at generating companies further south.
The constraint is the same as for all territorial generating companies: the heat tariff is set by the regions, and it does not have to cover the full cost of production and delivery, while worn-out networks lose part of the heat along the way.
Heat supplied to the district heating systems of the cities of Zabaykalsky Krai and Buryatia.
Sales of generated electricity and of payments for plant availability on the wholesale market.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company produces electricity and heat at coal-fired plants in Zabaykalsky Krai and Buryatia and supplies heat to the cities of the region.
Because there is practically no trunk pipeline gas in Zabaykalsky Krai and Buryatia, while coal is mined nearby. Historically, the region's power sector was built specifically around local fuel.
Because of the climate: the heating season is longer and colder, so more gigacalories are supplied. Heat carries a correspondingly larger weight in the revenue mix of such a company.