AIRLINK 207.89 Decreased By ▼ -4.93 (-2.32%)
BOP 10.33 Increased By ▲ 0.08 (0.78%)
CNERGY 6.82 Decreased By ▼ -0.18 (-2.57%)
FCCL 33.52 Increased By ▲ 0.05 (0.15%)
FFL 17.00 Decreased By ▼ -0.64 (-3.63%)
FLYNG 21.65 Decreased By ▼ -0.17 (-0.78%)
HUBC 129.25 Increased By ▲ 0.14 (0.11%)
HUMNL 14.08 Increased By ▲ 0.22 (1.59%)
KEL 4.77 Decreased By ▼ -0.09 (-1.85%)
KOSM 6.84 Decreased By ▼ -0.09 (-1.3%)
MLCF 43.00 Decreased By ▼ -0.63 (-1.44%)
OGDC 215.85 Increased By ▲ 2.90 (1.36%)
PACE 7.15 Decreased By ▼ -0.07 (-0.97%)
PAEL 42.29 Increased By ▲ 1.12 (2.72%)
PIAHCLA 16.88 Increased By ▲ 0.05 (0.3%)
PIBTL 8.45 Decreased By ▼ -0.18 (-2.09%)
POWER 8.85 Increased By ▲ 0.04 (0.45%)
PPL 185.10 Increased By ▲ 2.07 (1.13%)
PRL 39.33 Decreased By ▼ -0.30 (-0.76%)
PTC 24.65 Decreased By ▼ -0.08 (-0.32%)
SEARL 98.49 Increased By ▲ 0.48 (0.49%)
SILK 1.00 Decreased By ▼ -0.01 (-0.99%)
SSGC 40.70 Decreased By ▼ -1.03 (-2.47%)
SYM 18.39 Decreased By ▼ -0.47 (-2.49%)
TELE 9.18 Increased By ▲ 0.18 (2%)
TPLP 12.38 Decreased By ▼ -0.02 (-0.16%)
TRG 66.27 Increased By ▲ 0.59 (0.9%)
WAVESAPP 10.86 Decreased By ▼ -0.12 (-1.09%)
WTL 1.84 Increased By ▲ 0.05 (2.79%)
YOUW 4.04 Increased By ▲ 0.01 (0.25%)
BR100 11,852 Decreased By -14.4 (-0.12%)
BR30 35,958 Increased By 260.4 (0.73%)
KSE100 113,934 Decreased By -214.9 (-0.19%)
KSE30 35,843 Decreased By -109.3 (-0.3%)
Markets

Moscow approves $29bn power upgrade to encourage domestic suppliers

MOSCOW: Russia has approved the start of a 1.9 trillion rouble ($29 billion) modernisation plan for domestic power p
Published January 25, 2019

MOSCOW: Russia has approved the start of a 1.9 trillion rouble ($29 billion) modernisation plan for domestic power plants, Energy Minister Alexander Novak said on Thursday.

Power is one of the most competitive sectors in Russia, with state players, private investors and firms such as Italy's Enel , Finland's Fortum and Germany's Uniper.

The 2022-2031 modernisation covers 41 gigawatts, a sixth of Russia's existing power plant capacity, and will replace an earlier state-backed programme where investors were given the opportunity to build the new capacity.

Investors will bid to take part in selected upgrades and granted 16-year agreements with customers who will pledge to pay higher prices in exchange to the access to the capacity.

Moscow will require them to use Russia-produced equipment for the upgrades which would involve replacement of turbines, boilers, steam-power units, among other parts, in "up to 100 percent" of cases, Novak told reporters.

Using Russian equipment may be a challenge. Russia began building two power stations in Crimea to provide electricity to the peninsula which it annexed from Ukraine in 2014, but the facilities became embroiled in a row over sanctions.

German engineering firm Siemens has said Russia clandestinely delivered several of its turbines to Crimea, despite European sanctions which ban the supply of energy technology to Crimea.

Russia's energy ministry says the turbines were not from Siemens, but were modernised turbines that were the work of Russian specialists and were Russian equipment.

Russia partially launched both power stations in Crimea last year but has delayed the timing for them to reach full capacity.

Tekhnopromeksport, the engineering firm building the plants, said last month it had requested the full launch be pushed back until spring, citing issues with the supply of equipment and problems with subcontractors and infrastructure.

Russia wants the new programme to be a catalyst for local producers, including subsidiaries of foreign firms, to create domestic versions of the global power sector equipment, cutting Moscow's reliance on Western suppliers.

Copyright Reuters, 2019

Comments

Comments are closed.