Power sector

An Expert's View about Energy in Russia

Posted on: 25 Aug 2012

Russia’s power industry has recently been transformed beyond recognition – from a state owned monopoly into liberalized industry.

Power sector in Russia Russia’s power industry has recently been transformed beyond recognition – from a state owned monopoly into liberalized industry. With transformation still underway, the sector offers exciting opportunities to UK companies expanding overseas. Market overview With total installed capacity worth 229 GW, Russia is one of the largest power markets in the world; every year energy production and consumption in Russia continues to grow. The market share is dominated by thermal production with 69%, followed by nuclear with 16%, and hydro with 15%. Russia has 31 nuclear reactors distributed over 10 sites. This number is expected to reach 42-58 by 2030 at a rate of 3-4 per year as of 2015. Russia is trying to rethink its approach to power and create new power model which will allow reconfiguring the approach to baseload and peakload power and construction of additional grids. Russia is also looking at energy efficiency sector reform; all of that offers potential opportunities to the UK business in such areas as engineering consulting, equipment upgrading and supplies, Smart-Grid and Smart metering technology. Additionally, turbines, valves, pumps and wiring are often on the tender lists. Key opportunities According to the three step Energy Strategy, by 2030 the Russian Government plans to invest in the following projects; total investment is expected to reach $2000bn: ξ Developing power capacities (2013-2015) - Russia is investing £40bn in nuclear reactor dissembling of nuclear waste management ξ Transmission - £48bn investment is planned in construction of new power transportation lines and renovation of the existing facilities ξ Improving energy efficiency (2015-2022) - Russia annually invests at least £1million in energy efficiency ξ Developing renewables (by 2030) - Russia is planning to install wind power systems with a total capacity of 5000MW by 2020. Latest export opportunities – Power Latest export opportunities – Russia Getting into the market Tendering in the power sector in Russia has become more open and transparent in recent years. Major power companies have specialised departments or e-commerce platform responsible for procurement. However, there are still some barriers, such as - tender information is available only in the Russian language plus there might be formal differences in technical regulations. A foreign company trying to go it alone will likely run into problems and local partners are highly recommended. In addition to local partners, friendly relations with the local administration in whatever region one plans to do business are also important. Background research and relationship-building are key. More about doing business in Russia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Anastasia Badina, British Embassy Moscow. Tel: +7 (495) 956 7320 or email: anastasia.badina@fco.gov.uk Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. UKTI Energy Mission to Russia 10 – 13 September 2012 Latest events - Power Other major events Energy Fresh Renewable Energy and Energy Efficiency Technologies 31 October 2012 www.energy-fresh.ru/conference/?id=1399 Electrical Networks of Russia 2012 27 – 30 November 2012 www.expoelectroseti.ru/index.php?lng=en Russia Power 2013 5 – 6 March 2013 www.russia-power.org/en_GB/index.html Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

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