In recent decades in Russia, the quantity of hydro power plant (HPP) and pumped storage power plant (PSPP) equipment in use beyond its operational service life has significantly increased. In the near future the local industry will focus on replacing dated infrastructure. Domestic hydropower also faces the challenge of digitalization, which ensures the optimization of technological and business processes to improve energy security and efficiency. What are the biggest challenges encountered by hydropower companies when upgrading equipment? How effective is partially or fully upgrading the main equipment at large HPPs proving to be? What can be gained by introducing digital technologies at HPPs and PSPPs? What targets are companies setting in this regard? What are the plans of the Russian power engineering sector in terms of import substitution? What are foreign companies planning in terms of localizing production in the Russian Federation?