• forecasting the development of the power industry;
• ensuring durability, extension of service life and maintaining reliability of equipment at power stations and transmission facilities of the UES of Russia;
• development of new technologies for generation, distribution and sale of energy, for dispatch and control;
• refurbishment and modernisation, reduction of greenhouse gas emissions (СО₂) ;
• scientific and technical support of the Unified Energy System development as a basis for a reliable and stable operation of the power industry, for creation of a competitive internal market as well as for the participation in electricity markets abroad;
• scientific and technical, methodological, and organisational support of energy saving and cost cutting programmes;
• formation of market based systems and mechanisms for the organisation and financing of research and development in the power industry;
• commercialisation of intellectual property;
• development of international co-operation with energy systems in the CIS and Baltic States as well as with energy systems of Europe and Asia.

Forecasting and power industry development programmes. Pursuant to the instructions of the Government of the Russian Federation, in 2001 RAO "UES of Russia" prepared proposals for an adjustments to the "Russian power industry strategy for a period until 2020".
The following key points are of fundamental importance for RAO "UES of Russia":

• high rates of growth of the gross domestic product can be achieved at lower rates of power generation increase than was previously planned;
• growth of prices for electrical and thermal energy must allow for the possibility of extended reproduction in the industry;
• the increase of gas requirements for the needs of the power industry is objectively linked to the growth in power consumption;
• an increase in the rate of development of non-conventional and renewable power sources, primarily in the hydro power generation, will allow to increase the volume of power generation by HPPs considerably;
• generating plant planned to be commissioned at power stations within the next 20 years covers the forecast growth in demand and corresponds to the capabilities of the sector and of the industry as a whole as regards its construction.

These points were incorporated in the investment programme of RAO "UES of Russia", in the programme of refurbishment of power stations and transmission lines, in the long-term power industry policy, in the programmes for the development of the hydroelectric power generation sector; in the regional programmes for the development of the power industry of Khabarovsk Kray, Primorsky Kray, Amurskaya Oblast, Krasnoyarsk Kray, etc.
The best way to increase efficiency of power plants' operation in the conditions of a shortage of investments is to extend the service life of existing equipment. In 2001, at the request of RAO "UES of Russia", a number of Russian scientific research centres developed the "Concept for the extention of service life of key power and heat generation equipment of power stations". The programme assesses the possibilities and conditions for further operation of equipment and incorporates the guidelines for the assessment of the degree of risk associated with the operation of equipment with different types of defects and contains recommendations for the elimination of such defects. The document is called "Survivability of ageing TPPs".
To ensure reliability and safety inspection of hydro generating facilities of RAO "UES of Russia" and of Regional energos was carried out in 2001; safety statements were drawn up with respect to hydro technical facilities at 53 power stations.
Technical refurbishment and modernisation. The "Concept of technical refurbishment of thermal power plant of RAO "UES of Russia" and Regional energos for a period until 2015" was prepared in 2001 pursuant to the instructions of RAO "UES of Russia".
A radical solution allowing for a significant increase in efficiency is the use of combined-cycle gas turbines (CCGT). The power industry strategy of Russia until the year 2010 gives priority to the commissioning of high efficiency gas and steam combined cycle plants both at new power stations and at already operating TPPs. Lenenergo continues its experimental operation of a PGU-450 combined-cycle gas turbine at North-West CHP. An experimental prototype of GTE-110 gas-turbine unit is soon to be completed. The unit was tested at Ivanovo CPP and the technical solutions incorporated into it by its designers proved to be correct. The designers are now working on the construction of GTE-180
In 2001, in accordance with the Federal special purpose programme "Fuel and Energy", the Company continued the operation of the E-820-140 experimental boiler with a steam output of 820 tons/h and with a ring furnace. The Podolsk machine building plant, together with Siberian companies and "Kuzbassenergo" power stations, has reconstructed 200 MW boilers to implement a new technology using a simplified three-stage fuel burning method which allows to reduce nitric oxide atmospheric emissions. The Company began using the system of fuel oil-free ignition and stabilisation of the coal-dust flame by means of electric arc plasmotrones.
Reliability and stability of the UES. At the request of RAO "UES of Russia", the problems of protection control and frequency and power regulation in the integrated energy systems and in the UES of Russia were tackled.
The protection control system was developed and re-built at Siberian and Eastern IDAs. The Concept of an Integrated System of Shedule Optimisation at the UES of Russia was prepared to manage the normal and emergency operation regimes. To provide for the simultaneous operation of the UES of Russia and foreign energy systems, technical specifications for the simultaneous operation of the Transeuropean Synchronous Integrated System (TESIS) was developed, a study of the system problems and of the stability of power transmission between Russia and Finland was carried out, improvements to the technology of direct current transmission for the development of links between the UES of Russia and the energy systems of other countries were made.
Reduction of costs and energy saving. In 2001 the Company continued to implement the "Programme of energy saving in the power industry for the years 1999 - 2000 and until the years 2005 and 2010" and of the "Programme for energy inspections of the companies within the Holding RAO "UES of Russia" for the years 2000 - 2002".
A regulatory and methodological basis for energy inspections was developed and tested on pilot projects at Mosenergo, Tverenergo, Karelenergo, Tomskenergo. The inclusion of energy inspection costs, and expenditures on costs reduction and energy saving programmes in revenue requirements for tariff setting purposes was agreed with the FEC and the Ministry of Energy of Russia. The main regulatory, legal and technical aspects of stimulation of companies towards costs reduction and energy saving, as well as for the development of business in this field have been determined.
Reformation of the research and planning complex (RPC). In order to improve research, planning and related services guidelines for the reformation of the RPC providing for the establishment of engineering and research centres have been developed and approved. The UES Engineering Centre was established to provide engineering services. The creation of the Povolzhye Electrical Power Engineering Company, Southern, Urals, and Siberian science and technology centres, and the science and technology centre "Electroenergetika" is underway.
A non-commercial partnership "Innovation Power Industry Fund" is now in the process of being established. Its aim will be to create market mechanisms for the organisation and financing of research and development in the power industry, and for the organisation of co-operation with international innovation and research foundations with a view to exchange technological information and expanding the market for the RPC of RAO "UES of Russia".
Financing of research and development work. In 2001 the volume of contributions to the research and development fund of RAO "UES of Russia" increased by a factor of 2.2 compared to the year 2000. 396.2 million roubles was allocated for the implementation of departmental science and research programmes. Promotion of the results of the work financed from the research and development fund yielded a threefold increase in the number of licence agreements concluded by the Company.
International scientific and technical relations. In 2001 the Company continued scientific and technical co-operation and co-ordination of work with international energy associations, scientific and technical unions, with Baltrel, CIGRE, WEC (World Energy Council), Eurelectric, UCTE, as well as co-operation under the "Russia – EU energy dialogue", etc.