Russia’s Federal Grid Company (FGC), the
operator and manager of Russia’s unified electricity
transmission grid system, has announced a programme
of investment totalling RUB 952.4bn ($31bn) covering
a five year period from 2010 to 2014.
The programme provides for high-scale construction
and renovation of the electricity grid, removal of
network restrictions, technological connection and
providing network capacity for newly built power
plants throughout the country.
The new five-year investment programme has already
been approved by the Energy Ministry of Russian Federation.
It was developed from the previously adopted investment
plan for 2010-2012 as part of the Federal Grid’s
transition to five-year regulatory period.
Investment programme will include the construction
of 73 new substations with wattage of 220-500kW and
total capacity of 89,180 MVA and the construction
of 123 new high-voltage power lines with wattage
of 220-750kW and total length of circa 21,000 km.
Around one thirds of the investment will be aimed
at renewing existing transmission assets with the
remainder paying for new construction.
Oleg Budargin, Chairman of the Management Board of
Federal Grid, commented, “This is a unique
and carefully designed investment programme that
will help to modernize Russia’s high-voltage
electricity grid and bring it in line with the rapidly
increasing electricity demand in the growing Russian
economy. We aim to cut over half the number of unconnected
generating assets, considerably reduce the possibility
of system faults, provide transmission capacity for
c.23 GW of newly commissioned power generation and
remove technological restrictions to power transmission
within the system.”
The investment programme will be financed mainly
from the company’s own funds and borrowing,
as well as a comparatively small contribution from
government funding and technological connection fees.
The main elements of the investment programme include
- Renewal of fixed assets
- Development of backbone network in Russian regions
- Network extension and upgrade as part of the federal
priority development programmes (including Sochi
- Provisioning for the capacity of nuclear, hydro
and thermal plants
- Upgrading grid facilities in Moscow, St. Petersburg
and Tyumen region