Investment activities

INVESTMENT PROGRAMME

Due to the rapid economic growth and increasing electricity demand, addition of generation capacity and development of the power grid infrastructure is becoming especially important.

In February 2008, the Russian Government approved the Master Plan for the Location of Energy Facilities until 2020 (Order No. 215 of the Government of the Russian Federation, dated 22 February 2008).

According to the base case scenario of the energy use forecast for the period of 2020, which was used as a basis for the Master Plan, the need for new generation capacity is estimated at 180 GW. The total installed capacity of generation facilities is to increase from 203 GW in 2006 to 340 GW in 2020, with about 40-45 GW of existing capacity expected to be decommissioned.

The Master Plan serves as a basis for the five-year investment programmes of energy companies. In Q1 2008, the Management Board of RAO "UES of Russia" approved the Investment Programme of its companies for the years 2008 to 2012, which provides for major overhaul, modernization and construction of 44,700 MW of capacity to support the social and economic development in the Russian Federation.

The large-scale construction of generation facilities will be financed with own funds of RAO UES energy companies, proceeds from offerings of additional shares in WGCs and TGCs to private investors, project finance, direct private investments, and debt financing.

GENERATION AND GRID FACILITIES PLANNED TO BE BROUGHT ON LINE BY THE COMPANIES ESTABLISHED IN THE COURSE OF RAO UES REORGANIZATION

 

2008

2009

2010

2011

2012

2008-2012
Turbine capacity, GW

2.6

6.4

14.1

12.2

9.4

44.7
Transformer capacity of distribution substations, '000 MVA

21.7

44.5

36.2

22.2

32.3

156.9
Transmission lines, 220 - 750 kV, '000 km

1.2

4.1

5.8

4.5

6.5

22.2
Transmission lines, 0.4-110 kV, '000 km

13.1

14.6

17.3

15.0

16.7

76.6

INVESTMENT PROGRAMMES OF INFRASTRUCTURAL COMPANIES

OAO "FGC UES"

The key aspects of the Investment Programme of OAO "FGC UES" for 2008-2012 are as follows:

  • providing capacity needed to transmit electricity produced by the new generation facilities to be brought on line by generation companies (20 percent of the total investments);

  • implementing a programme to improve reliability of electricity supply to customers in Moscow, Saint Petersburg, and some areas in West Siberia (17 percent);

  • creating energy facilities envisaged by the Cooperation Agreements entered into with regional governments (14 percent);

  • renovationof capital assets (20 percent);

  • creation of technological control and communications systems (7 percent).

In the course of implementation of its Investment Programme, FGC will also address system reliability issues and take steps to ensure electricity transfers among the IES. In particular, in 2008, the following network facilities have been brought on line: 500 kV Barabinsk – Tavricheskaya transmission line with an extension of the 500 kV Tavricheskaya Substation, and the 500 kV Zarya – Barabinsk transmission line with the 500 kV Barabinskaya Substation, which improved the reliability of power supply to customers in the Omsk and Novosibirsk Regions, and eliminated the regions' dependence on power supplies from Kazakhstan.

The Investment Programme of OAO "FGC UES" for 2008-2012 totals RUB975 billion.

OAO "SO UES"

The Investment Programme of OAO "SO UES" is intended to finance System Operator's projects which will ensure development of electricity operational mode techniques, provide support to electricity trading processes, improve the UES controllability, increase the reliability of the IT systems, and improve the existing operational dispatching infrastructure.

The Investment Programme of OAO "SO UES" for 2008-2012 is equal to RUB38.5 billion.

OAO "HydroWGC"

The Investment Programme of OAO "HydroWGC" is a crucial instrument in achieving the company's strategic goals, such as steady development of renewable generation, ensuring the system reliability and safety, and increasing the company's value.

Among the key priorities for HydroWGC are projects to complete construction in progress, including the project being implemented jointly with Basic Element to build the Boguchanskaya HPP and aluminium smelter (BEMO Project). The project involves the participation of both energy and manufacturing companies, which will help significantly reduce the project participants' risks. Another priority area of the HydroWGC investment will be implementation of projects designed to ensure system reliability (Zagorskaya PSPP-2), renewable generation projects (construction of small-scale HPPs), system-wide projects (construction of the Evenkiyskaya HPP with 8 GW of capacity).

As a result of the investment programme, OAO "HydroWGC" will bring on line 4.9 GW of generation capacity by 2012.

The investments envisaged under the company's programme for 2008-2012 total RUB600.6 billion.
 
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