PRESS: Ministry to adjust Russia’s power system upgrade concept

MOSCOW, Apr 13 (PRIME) -- The president’s expert department in March suggested adjusting a concept of Russia’s power generation system upgrade presented by the Energy Ministry, Kommersant business daily reported on Friday citing industrial sources.

The department found the ministry’s plan lacking the major thing -- an investment attraction mechanism -- and mainly focusing on how the funds should be distributed among market members.

The concept of thermal power system upgrade was proposed by the ministry and approved by President Vladimir Putin in November 2017. It is aimed at prolonging the investment cycle of power facilities modernization after the completion of the 2015–2017 capacity supply agreement program.

The ministry suggested that payments on the agreements available in 2020s should be used for upgrade of 40 gigawatt of thermal power facilities. The president ordered that remote power facilities, renewable generation, grids and nuclear power plants be included in the project and focus be kept on power prices not exceeding inflation.

The current version of the plan envisages upgrade costs at 3.5 trillion rubles until 2035 including 1.35 trillion rubles allocated to modernization of 40 gigawatt of thermal power facilities.

The Energy Ministry said that the concept is still being developed and will be sent to the government until May 1.

(62.0659 rubles – U.S. $1)

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