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Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution Electric Power of Russia: Generation, Transportation and Distribution

Electric power industry of Russia needs modernization: 74% of thermal power plants are over 30 years old, 22% of which are older 50 years, more than half of electric grids are older than 30years. Obsolesce and deterioration of facilities leads to fuel consumption increase, losses growth, and decrease of industry efficiency. Quality of consumers service also drops: characteristics of number and duration of trips per a consumer in Russia is 10 times as high as similar figures in European countries.

On 27 September 2012 at the session of the Government of the Russian Federation the Minister of Energy of Russia A.V.Novak presented a Program of Russian Electric Power Industry up to 2020. The program was developed by the lead industrial institutes with participation of energy companies and the biggest enterprises of energy and heavy machine building.

In the frame of the program demolition of old facilities, modernization of existing and construction of new generation facilities and power supply network based on new technologies, and optimization of generation objects and power supply network location is planned. This will allow turning to the building of new intellectual energy system of the country. Modernization and construction of generation facilities is estimated at 0.27 trillion USD till 2020; modernization and construction of power supply network is estimated at 0.15 trillion USD.

The program foresees introduction of 76 GW of new facilities and demolition of 26.4 76 GW of old facilities. In power supply network over 150 units of substations in main grids, 8.5 units of substations in distribution grids will be introduced, and over 300 km of power supply network will be built.

The Minister noted that existing pricing system today does not provide stimulus for construction and modernization projects implementation. According to the minister, the main issue nowadays is searching for financing sources for renewal and modernization of basic funds in electric power industry. In December 2012 the Ministry of Energy of Russia is planning, after public consultation, to present the conception of further development of electric power and capacity market to the Government of the Russian Federation. According to the Minister, this will allow by the end of 2013 to create a new normative base. The changes will come to power from 2014.

The Ministry of Energy of the Russian Federation believes that the increase of efficiency potential in electric power industry may be related as to investment as to operations costs. That is why the Ministry suggested to the Government a number of measures focused at investment attraction to the industry and sustainable regulation of the industry as well as at efficiency increase.

The Ministry of Energy of the Russian Federation considers essential to take new model of the market that would provide stimulation of electric power industry objects modernization and gaining of investment sources for modernization.

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