Exporting electrical energy is a high priority activity for RAO UES of Russia, as this is a major source of finance for the Company’s functioning and for the implementation of investment projects.
The existing and potential capacity of the power engineering sector and the existence of
about 30 million kW of power station capacity left unused in the balance of the Unified
Energy System of Russia provide good grounds for considering the feasibility of a
large-scale increase in exports of electricity from the Unified Energy System of Russia.
An increase in the total volume of electrical energy exported from Russia to its immediate neighbours is held back by the low effective demand of the members of the Commonwealth of Independent States, while exports to countries further afield are restricted by available transmission capability.
Exports to former Soviet republics. By comparison with 1998, actual
exports to our immediate neighbours were reduced substantially in 1999, due to the
limitation or termination of the supply of electricity under contracts which had not been
paid on time. From early 1999, commercial deliveries to Ukraine were terminated (a zero
balance of power flows is merely maintained). Deliveries to Kazakhstan and Georgia have
been substantially reduced to a level corresponding to the level of payment. Unpaid
contracts have been annulled, in particular with Ukraine, Georgia, Abkhazia, Southern
Ossetia, Regional Energy Commissions in Kazakhstan (Kustanai and Semipalatinsk). The
supply of electricity has been reduced to an affordable level for Aktyubinsk, Uralsk, and
Atyrau (Kazakhstan). Accumulated receivables for energy previously supplied have been
reclaimed in part. Documentation is being drawing up for the repayment of a debt of 99.6
million dollars US due under the Intergovernmental Agreement on the Leasing of Baikonur,
and also for writing off 249 million dollars US against the acquisition of a 50 per cent
block of shares in the Ekibastuz Fossil Fuel Power Station 2. Negotiations have been held
between the government of Ukraine and the management of RAO UES of Russia concerning the
development of a definite schedule for repaying the debt. But, despite the fact that a
political decision has been taken, the uncooperative position adopted by middle-level
management is placing significant obstacles in the way of practical progress. A new
contract for supply of electricity with payment in monetary form has been signed with
Georgia.
Over the period under review, the volume of electricity supplied and not paid for by the countries of the CIS has been reduced to 2.9 billion kWh. This has resulted in a saving of 0.98 million tonnes of nominal fuel, equivalent to 1.79 million tonnes of coal or 0.72 million tonnes of heavy fuel oil. In addition to improvements in payments for current supplies of electricity, energetic efforts have been made gradually to reduce the cumulative debts of preceding years — with the result that last year the total debt of CIS countries, including energy supplied in previous years, was reduced by 64.5 million dollars, with Ukraine’s debt reduced by 45.6 million dollars.
At the same time, the amount of electricity delivered to Belarus has increased following resolution of the question of payment. The involvement of the Russian operator «Mezhregionenergo» in settlements for electricity supplied to Belarus has resulted in a significant improvement in payments, including those made in monetary form.
As of 1.07.99. a new procedure for exports of electricity was introduced, involving transition to the conclusion of contracts of sale with suppliers instead of commission-based agency agreements. From the second half of 1999, barter agreements have been discontinued. The monetary component in settlements for electricity supplied to many countries of the CIS was formerly only 5—10 per cent, but, from the second half of 1999, the proportion of payments made in monetary form began to increase, reaching 41 per cent for payments from Kazakhstan and 100 per cent for payments from Georgia.
Exports to countries further afield.
The development of exports of Russian electricity along the East-West axis is an area of top strategic priority, which must be planned not on the basis of supplying an anticipated shortfall of electricity in the West, but on the assumption of competition and Russia’s participation as an equal partner in the Scandinavian market, established in 1995, and the developing European market in electricity. The main factors determining the success of export policy will be the efficient operation of power systems, quality, price, reliability and guarantees from the supplier.
The
creation of a trans-European electric power system will require harmonisation of the
technical standards and operating principles of electric energy associations in the East
and the West — above all in matters of frequency regulation and operational reliability
of electric power grids.
In order to make more rational use of the capacity of the Vyborg DC link, a contract has been concluded with the firm FORTUM for additional supplies of electricity to Finland. At the beginning of 2000, contracts were drawn up and signed for the supply of electricity to Poland via the Ros-Belostok line and the national grids of Georgia and Turkey.
Work has been begun on a study of foreign markets and the opportunities for exporting not only electricity, but also technology, equipment and services. This activity could generate significant revenues, since there are about 130 operational power stations in other countries which were built with the involvement of the USSR. At the present time, negotiations are taking place with potential buyers of electricity in countries beyond Russia’s immediate neighbours.
The potential volume of exports of electricity by the year 2010 is estimated at 35 billion kWh.
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