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.
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
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.
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
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
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
More about doing business in Russia
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:
Contact your local international trade team
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
Renewable Energy and Energy Efficiency Technologies
31 October 2012
Electrical Networks of Russia 2012
27 – 30 November 2012
Russia Power 2013
5 – 6 March 2013
More about OMIS and other UKTI services for exporters