Innovation

The innovation developed by IEK GROUP is an integrated industrial automation ecosystem delivering a full spectrum of solutions, from software platforms to physical electrical equipment, defined by a systemic transition to next-generation intelligent power distribution infrastructure. It addresses outdated residential and municipal grids. This approach enables safer, more reliable, and energy-efficient electricity management in heavily worn networks. Operating since 1999, the company has become a regional pioneer across Russia and the CIS, among the first to address electricity safety and accessibility at scale, tackling one of the most critical yet overlooked challenges: severe deterioration of distribution assets that threatens elevators, medical equipment, life-support systems, and ultimately human lives. As Chief Technical Officer Sergei Semendilov notes, “it concerns every person, because such a device exists in every house.”

This solution emerged from recognizing the systemic scale of infrastructure aging across CIS countries and parts of Southeast Asia, requiring fundamentally new energy-management approaches. “There is significant aging and deterioration of the power distribution infrastructure in the country,” Mr. Semendilov explains. “As a result, electricity outages occur periodically in older buildings, and overall reliability remains low.” Smart distribution devices and TORESCO split electricity meters became the technological response, developed over three years by a multidisciplinary in-house team using the company’s own manufacturing and laboratory base, with Semendilov establishing the core technical architecture at project launch.

IEK GROUP’s activities significantly contribute to the UN Sustainable Development Goals by supporting SDG7 through reduced network losses, improved energy efficiency, and the integration of renewables; advancing SDG9 through the modernization of critical infrastructure; and promoting SDG11 by enhancing the reliability and resilience of urban energy systems.

Inspiration

The idea behind the technology emerged through hands-on experience with worn-out and vulnerable infrastructure, where every system failure affects human safety. For Sergey Semendilov, the starting point was a deep sense of responsibility. “The cost of failure here is quite high,” he emphasizes. “Sometimes what is at stake is the very existence of a business, and sometimes a human life.” This led to solutions that operate proactively, anticipating risks rather than merely complying with standards.

The innovation grew from Mr. Semendilov’s professional journey — from design engineer to executive leader, from working on one product to infrastructure-scale thinking. “It’s the feeling of being a creator: you design something, and then it is produced in large volumes,” he says. “You see your product in homes, in hotels, in everyday life, and you realize that your work is not in vain.”

The core motivation shifted from the repair-after-failure mindset toward prevention. Aging networks are inefficient, overloaded, and prone to energy losses, with limited visibility. IEK GROUP’s intelligent solutions were conceived as systems that enable equipment to be monitored and its remaining service life understood, enabling proper maintenance to prevent failures.

The innovation carries a clear social meaning. It is not just a technological upgrade, but a reduction of risks that millions face daily. This reflects the belief that financial results should be driven by a larger idea. “You need to look a bit further than corporate strategy requires,” Mr. Semendilov explains. “When there is a bigger idea behind revenue, work becomes easier.”

Overall impact

Although IEK GROUP does not position itself as a deeply ESG-focused company, its technological solutions are directly connected to social responsibility and the public good. “Our goal is to provide people with safe and affordable equipment for the transmission of electricity,” says Sergey Semendilov. “This is out of a classic ‘green agenda,’ but it is certainly socially significant work.” The innovation carries a clear purpose: to make infrastructure more reliable, cities more resilient, and energy consumption more conscious. Smart meters enable consumers to see and manage their electricity usage more effectively, while intelligent distribution systems reduce network losses and facilitate the integration of renewable energy sources.

IEK GROUP’s innovations in intelligent power distribution infrastructure have had a tangible impact on multiple levels: on the company’s business, on society, and on the environment. In the short term, the effects are reflected in increased reliability of specific facilities, reduced accident rates, and growing trust from customers and partners. In the long term, these solutions contribute to the systemic renewal of power distribution assets, reduce social and economic risks, and support the development of more sustainable cities — even contributing indirectly to a lower carbon footprint through improved system-wide efficiency.

Evidence includes patents, deployment in residential sectors, and international interest. Yet the most important proof is that the innovation works quietly. It does not draw attention when systems function smoothly, which is its value: when the lights stay on, the elevator moves, and the network withstands peak loads, the technology fulfills its social mission.

Business benefit

For IEK GROUP, the introduction of intelligent power distribution solutions marked a strategic shift from a traditional electrical equipment manufacturer to a provider of integrated infrastructure solutions. By developing and deploying smart power distribution systems and advanced metering technologies, the company strengthened its position as a technological leader in the CIS region and expanded its geographic footprint. These innovations enabled IEK GROUP to tap into the rapidly growing smart electricity and energy metering market, projected to rise from roughly $27 billion in 2025 to over $58 billion by 2033, driven by grid modernization and renewable energy integration. Despite strong competitors like Landis+Gyr (≈22% market share) and Itron (≈19%), IEK GROUP’s integrated approach helps it compete effectively. “We (IEK crew) participated in international exhibitions, and these technologies attracted significant interest. In some markets, we compete with other companies and are not inferior in terms of quality,” notes the company’s CTO, Sergey Semendilov.

In late 2025, IEK GROUP strengthened its intellectual property portfolio by obtaining three patents for TORESCO split electricity meters — innovations that enhance usability, communication reliability, and multitariff metering. These systems increase transparency and user engagement, allowing consumers to monitor usage through intuitive, reliable interfaces. By investing in these solutions, IEK GROUP increased revenue through new contracts, attracted additional clients, and secured partnerships with utilities and urban developers. In the first half of 2025, revenue grew 19 % Year over Year to 26.8 billion rubles, while adjusted EBITDA rose 42 %, reflecting strong margins and demand for integrated solutions.

Internally, the rollout created tangible benefits: multidisciplinary teams of engineers, designers, and researchers were hired and trained, improving retention and well-being through engagement in high-impact projects. By offering integrated solutions, IEK GROUP opened new investment opportunities, diversified revenue, and pushed competitors to match its intelligence, reliability, and efficiency.

Social and environmental benefit

The social impact of the innovation is most evident where it matters most — in people’s everyday lives. The reliability of power distribution is directly linked to the safety of residential buildings, elevators, hospitals, and urban infrastructure. Intelligent systems enable early risk detection and failure prevention, reducing the likelihood of incidents with severe consequences. In this sense, IEK GROUP’s innovation acts as a protective layer against systemic risks, making urban environments more resilient and human-centered. An additional social benefit stems from transparency in energy consumption: smart meters allow users to see and understand their usage patterns, encouraging more responsible behavior and reducing inefficient consumption.

Environmental benefits are equally significant. Modernizing aging and overloaded distribution networks reduces electricity losses, which, in regions dependent on fossil-fuel–based power generation, directly translates into lower harmful emissions. For example, if a typical urban distribution system loses 10 % of the electricity generated, modernizing it to reduce losses by 30–40 % effectively reduces the amount of energy that must be produced from polluting sources. IEK GROUP’s intelligent infrastructure supports integrating renewable energy and advancing electric mobility, helping cities move toward cleaner energy systems.

By combining technological innovation with systemic improvements, IEK GROUP contributes to safer, more resilient cities while mitigating environmental impact. As Sergey Semendilov emphasizes, “New technologies must emerge that make cities more environmentally friendly and more comfortable for living.” The company’s solutions thus simultaneously enhance public safety, promote energy efficiency, support responsible consumption, and reduce regional carbon emissions, demonstrating a clear link between smart infrastructure and sustainable urban development.

Interview

Sergey Vladimirovich Semendilov, Chief Technical Officer