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Modernization of Thermal Generation
5 October 2018

Despite the comprehensive nature of a prior programme to construct energy-generating facilities under capacity-delivery contracts, the ageing of the Russian power grid’s thermal generation complex remains a critical issue. A plan to deploy electric power facilities over a period up to 2035 calls for decisions on investments to be made with regards the high capacity of current thermal generation (thermal power plants and regional power stations), and questions to be answered regarding their modernization, or decommissioning and replacement. The most crucial challenge is implementing a fully-fledged market mechanism for such modernization within the shortest possible timeframe. What would be the ideal date for the first modernization projects to be launched? How can a balance best be struck between providing support to Russian power engineering and ensuring reliable operation of the energy system when determining localization requirements for reinstalled equipment at thermal power plants? What is the optimal guaranteed rate of return for investors? Is it advisable to maintain the authority of the Government Commission for the Development of Electric Power with regards the selection of projects according to a separate quota? What are the selection criteria, and how can a balance be found between the interests of the regions and consumers? What is the best way of redistributing quotas for modernizing equipment which were not allocated during competitive selection on the wholesale market?

Russian Energy Week
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Manege, 1st floor, Presidium conference hall
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