Market report : the hydro, thermal and transmission and distribution markets in Russia

This report presents a market overview of the Russian electric power industry and describes the potential for Canadian suppliers to enter into joint ventures to establish local production facilities and transfer technology expertise. The installed generating capacity in Russia is approximately 200,000 MW of which 30,000 MW is not operational. Half of the country's power assets have exceeded their life span and require modernization. As Russia's aging electrical power generation facilities continue to deteriorate, it is expected that half of the country's generating facilities will be obsolete by 2010. The sector is currently under reform to unbundle the services into separate generation, transmission and distribution responsibilities. The reform also aims at breaking up the state monopoly of Unified Energy Systems of Russia (UES) to allow competition and promote investment in reconstructing thermal and hydroelectric power facilities to meet Russia's growing electricity demands. This report describes the key factors shaping market growth with particular reference to sector reform, and opportunities with actual and planned projects. The competitive environment was also discussed with reference to local capabilities, international competition, Canadian position, and a competitive advantage through Canadian government policies and initiatives. A section of the report on public-sector customers described several organizations that manage and approve rehabilitation, modernization and expansion of existing plants and construction of new plants. Considerations for market-entry in Russia were outlined. The use of a local agent or distributor is recommended for conducting business in Russia