UPDATE: Russia welcomes locally made foreign turbines

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MOSCOW, Jul 17 (PRIME) -- The Energy Ministry does not oppose participation of foreign companies in equipment supplies for a large-scale modernization of the country’s thermal plants on condition its localization level amounts to 90%, Deputy Minister Vyacheslav Kravchenko told PRIME on Tuesday.

“This is really just one thing – to establish the level of localization for equipment of 90%. A certain amount of equipment should be produced on the territory of Russia – this means localization. If foreign companies are interested in this and come here and meet the localization level requirement, they will also be able to take part in modernization,” Kravchenko said.

Kommersant business daily reported citing sources that the Industry and Trade Ministry has proposed to create a sales market for modernization of Russian thermal power plants only for Russian plants. The ministry has prepared a road map for production of gas turbines of a big capacity in the 2020s, the daily said.

Kravchenko said he was not familiar with such proposals of the Industry and Trade Ministry.

He also said the Energy Ministry proposes giving preferences to generating companies which will use experimental samples of Russia-made gas turbines of a big capacity for thermal plants.

“We believe there should be preferences for experimental samples, which our companies will install. I’m not ready to say now what preferences, because there are plenty of options. Roughly, to exempt from fines, reduce payments for capacity or set a longer grace period (when fines are not applied) – the range is quite wide. We believe that there should be preferences, but which exactly we will decide with the colleagues soon,” he said.

Russia does not currently have production of gas turbines with a capacity of 110 megawatts and higher, the main equipment at combined cycle thermal power plants.

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