Programme 2018

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Programme 2018


Development Plans for the Russian Fuel and Energy Industry Global Energy Agenda #TogetherBrighter REW 2018 Youth Day

Development Plans for the Russian Fuel and Energy Industry

Panel Session

The Global Gas Market in 2030

The consumption of gas will grow faster than that of other hydrocarbons, at a rate of around 2.5% per year for the next 15–20 years. The reasons for this growth lie in the fact that gas is an ecological, economically competitive fuel, and crucially, it is becoming more accessible thanks to LNG. The fact that gas is becoming more accessible worldwide also stimulates its increased use. As its advantages become more apparent, it becomes more competitive compared to other fuels – and more attractive to consumers. In addition, it is very difficult to achieve the Paris Agreement targets on climate change without an upturn in gas consumption. In recent years we have witnessed the far-reaching transformation of the gas market, in part through the increase in shale gas production, and advances in production and transportation technologies. But market globalization is the most important trend today. If previously a large proportion of gas sales and supply took place via pipeline, over the past decade LNG and gas pipelines now have an equal share. The number of LNG consumers has increased from 13 countries in 1990 to 36 countries in 2017, and is set to rise further. Today’s technologies enable us to create floating gas-fuelled power stations, and floating terminals for the liquefaction and regasification of gas. All this makes connecting it to on-shore infrastructure significantly easier and accelerates the development of LNG. Other factors in gas market globalization include increased supply from non-traditional sources, the transition from long-term contracts to spot prices, and a greater focus on the ecological aspect. Groups like the Gas Exporting Countries Forum (GECF) also facilitate the further transformation and globalization of the gas market by helping to develop a balanced approach to development and by protecting the interests of all market participants. Great hopes are pinned to gas as the fuel of the future, and Russia is the largest producer and has the largest proven reserves of this fuel. How do you view the prospects for gas? Should Russia accelerate its monetization in order to strengthen its position on the market, or will the market settle into place independently? Does the development of renewable energy sources threaten the gas market? In the oil sector we already have OPEC, with countries actively cooperating in order to deliver market equilibrium and sustainable development. Is a similar form of cooperation possible in the gas sector, given the geographical difficulties of the markets involved? What prospects are there for this kind of cooperation?

Moderator:
Geoff Cutmore — Anchor, CNBC

Panellists:
H.E. Mohammed Bin Saleh Al-Sada — Minister of Energy and Industry of the State of Qatar
Alexander Medvedev — Deputy Chairman of the Management Board, Gazprom
Leonid Mikhelson — Chairman of the Management Board, Member of the Board of Directors, NOVATEK
Alexander Novak — Minister of Energy of the Russian Federation
Yury Sentyurin — Secretary General, Gas Exporting Countries Forum (GECF)

Front row participant:
Keith Martin — Chief Commercial Officer, Uniper


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Nuclear Energy – the Basis of Global Partnership and Current Development

In partnership with ROSATOM State Atomic Energy Corporation

The last decade was marked by an important stage in power development that manifested in a gradual shift towards carbon free energy sources. The Paris Climate Change Summit has set a global trend to alter the world energy balance in favour of power generation with zero CO2 emissions.
This focus undoubtedly opens extensive possibilities for nuclear energy development. Today atom accounts for slightly more than 1/10 of world energy production, around 400 GW. The implementation of the Paris Climate Change Conference decisions and addressing global environmental problems require an essential increase of these figures by 2050.
The need for a transition to a new level of cooperation within the international atomic community, that could be called a global partnership, is pending today. Such partnerships, including in NPP construction as a key element of the modern nuclear energy, are of critical importance to solving systemic tasks of the atomic energy – ensuring energy safety, stability of supplies and environmentally-friendly generation.

Moderator:
Agneta Rising — Director General, World Nuclear Association

Panellists:
Alexey Likhachev — Chief Executive Officer, ROSATOM State Atomic Energy Corporation
Pekka Lundmark — President, Chief Executive Officer, Fortum Corporation
Yeafesh Osman — Minister of Science and Technology of the People’s Republic of Bangladesh
Nenad Popovic — Minister without Portfolio Responsible for Innovation and Technological Development of the Republic of Serbia
Peter Szijjarto — Minister of Foreign Affairs and Trade of Hungary
Mikhail Chudakov — Deputy Director General, Head of the Department of Nuclear Energy, International Atomic Energy Agency (IAEA)


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Will the Coal Industry Remain a Driver of Economic Growth in Developing Countries?

Growth in the consumption of coal across the globe is slowing as a result of tougher environmental requirements in developed countries. Nevertheless, the low cost of coal makes it an irreplaceable fuel for developing countries, where around 1.5 billion people still do not have uninterrupted access to modern forms of energy. Can coal drive economic growth and improve living standards in these countries? What energy markets are the most promising in terms of demand for coal? Is it worth waiting for breakthrough technologies in coal transportation, processing and consumption, which will increase its competitiveness with natural gas and renewable energy sources? Can coal chemistry, metallurgy, construction and other industries compensate for falling power generation demand in developed countries?

Moderator:
Anatoly Yanovsky — Deputy Minister of Energy of the Russian Federation

Panellists:
Alexander Grigoryev — Deputy General Director, The Institute of Natural Monopolies Research (IPEM)
Gareth Carpenter — Head of Coal Markets, S&P Global Platts
Alexander Kovalchuk — General Director, Coal Marketing Research Institute Ltd.; Advisor to the General Director, Russian Coal
Aleksey Kontorovich — Academic Advisor, Institute of Coal Chemistry and Material Science SB RAS; Academician, Russian Academy of Sciences
Georgy Krasnyansky — Chairman of the Board of Directors, Karakan Invest
Vladimir Tuzov — Chief Strategy Officer, SUEK
Mikhail Fedyaev — President, Siberian Business Union

Front row participant:
Kirill Molodtsov — Aide to the Chief of Staff, Presidential Executive Office


Development Plans for the Russian Fuel and Energy Industry

Panel Session

The Electric Power Industry: Challenges of the Fourth Industrial Revolution

In partnership with Rosseti

For companies – and indeed countries – to be competitive in the fourth industrial revolution, they will require expertise and best practices in digitalization, automation, and the industrial internet of things. Companies at the forefront, both in Russia and other technologically developed countries, are developing and implementing smart grids, smart energy distribution, new energy-storage technology, consumer services, and the energy internet. As well as changing market demands, companies also have to examine fast-growing technologies and drivers of disruption. Can the economic benefit from implementing new technologies already be felt? What technological and social problems do companies face in the process of digitalizing the electric power industry? Where will investment come from in order for plans to come to fruition? What government support do companies rely on?

Moderator:
Marcus Eul — Partner, European Leader Digitization in Energy Industry, PwC

Panellists:
Petr Biryukov — Deputy Mayor of Moscow for Housing and Utilities and Improvement
Pavel Zavalny — Chairman of the Committee on Energy, The State Duma of the Federal Assembly of the Russian Federation; President, Russian Gas Society
Atsuo Iiyoshi — Chancellor, Chairman of the Board of Directors, Chubu University
Pavel Livinsky — General Director, Rosseti
Willibald Meixner — Chief Executive Officer of Power and Gas Division, Siemens AG
Matteo Marini — Vice President, Division Manager, Europe, Power Grids Division, ABB
Simone Mori — Head of Europe and North Africa, Head of European Affairs, Enel S.p.A.
Arto Räty — Senior Vice President, Corporate Affairs and Communications, Fortum Corporation
Alexander Starchenko — Chairman of the Supervisory Board, Energy Consumers Association (ECA)
Alexey Texler — First Deputy Minister of Energy of the Russian Federation
Christoph Frei — Secretary General, Chief Executive Officer, World Energy Council


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Identifying a Strategy to Succeed on the Global Petrochemical Market

In cooperation with SIBUR

The petrochemical industry is growing apace – at twice the rate of global GDP. At the same time, this growth has a strongly pronounced regional differentiation in terms of raw materials and output. Countries without an extensive resource base, such as those in the EU as well as Japan and South Korea, are seeing growth in light-duty production with a considerable innovative component based on naphtha. In the Middle East, USA and several other countries, the sector’s growth comes from major projects based on natural gas processing. In China, coal and coalbed methane are widely used in the petrochemical industry. Countries are applying various mechanisms to regulate and encourage growth of the industry, and are increasing their competitiveness in various product niches. Why is it that the strategies of countries with fewer resources bring greater economic results? What measures to foster growth of the industry will result in the greatest economic benefit from cheap commodities? What restrictions are hindering Russian producers from increasing their competitiveness in global petrochemical markets? What can the government do to help develop petrochemical clusters? What are the prospects of new projects in the East of Russia? What infrastructure do Russian petrochemical companies lack?

Moderator:
Darya Borisova — Senior Partner, McKinsey & Company

Panellists:
Zou Wenzhi — Deputy Director General, Foreign Cooperation Office, China Petrochemical Corporation (Sinopec Group)
Sergey Donskoy — Member of the Board of Directors, Advisor to the General Director, Irkutsk Oil Company; Minister of Natural Resources and Environment of the Russian Federation (2012 - 2018)
Viktor Evtukhov — State Secretary – Deputy Minister of Industry and Trade of the Russian Federation
Mikhail Karisalov — Chairman of the Management Board, Chief Executive Officer, SIBUR
Rustam Minnikhanov — President of the Republic of Tatarstan
Andrey Slepnev — Chief Executive Officer, Russian Export Center
Pavel Sorokin — Deputy Minister of Energy of the Russian Federation


Development Plans for the Russian Fuel and Energy Industry

Realizing Energy-Saving Potential to Ensure the Success of the Housing and Urban Environment National Project: Nationwide Meeting

In partnership with Housing and Utilities Reform Fund

The Assistance Fund for Housing and Municipal Service Reform is a Russian state corporation. It assists in resettling people residing in unfit housing, modernizing the utilities infrastructure, and implementing energy-efficient technologies in the housing and utilities sector. Through meeting these objectives, transparency and efficiency in the housing and utilities sector will be ensured, residents will have access to high-quality services, a modern living environment will be created, towns and settlements will develop, and the Housing and Urban Environment national project will be implemented. This nationwide meeting will focus on key issues related to the development of housing and utilities, and to the creation of a modern and pleasant urban environment in the context of the objectives set forth in Russian Presidential Decree No. 204, “On the Russian Federation’s national targets and strategic objectives for the period to 2024”. What are the aims and objectives of the national project? What needs to be done to implement the national project to bring about a steady reduction in unfit housing? How can accumulated experience be best employed, such as when implementing targeted programmes to relocate people residing in unfit housing in the Russian regions?

Moderator:
Svetlana Razvorotneva — Executive Director, National Center for Public Control in the Field of Housing and Communal Services HCS Control

Panellists:
Dmitry Vakhrukov — Director of the Department of State Tariffs Regulation, Infrastructure Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation
Ekaterina Levitanskaya — Project Manager of Financial Markets of Europe and Central Asia Department, International Finance Corporation
Alexander Sidyakin — First Deputy Chairman, State Duma of the Federal Assembly of the Russian Federation Committee on Housing Policy and Housing and Communal Services
Sergei Stepashin — Chairman of the Supervisory Board, Housing and Utilities Reform Fund
Arkadiy Chernetskiy — First Deputy Chair of the Federation Council Committee of the Federal Assembly of the Russian Federation on Federal Structure, Regional Policy, Local Government and Northern Affairs
Vladimir Yakushev — Minister of Construction, Housing, and Utilities of the Russian Federation

Front row participants:
Anatoliy Kistenev — Head of Urban Okrug Jhatay of the Republic of Sakha (Yakutia)
Andzhey Raykevich — Vice President, National Energy Conservation Agency SA
Vladimir Talalykin — First Deputy General Director, Housing and Utilities Reform Fund
Konstantin Tsytsyn — General Director, Housing and Utilities Reform Fund


Development Plans for the Russian Fuel and Energy Industry

Plenary Session

Developing Infrastructure for Economic Growth and Improved Living Standards

In line with a presidential decree, the Government of the Russian Federation is drawing up a comprehensive plan in partnership with regional administrations to modernize and expand critical transport infrastructure. Experts have claimed that annual investments of around RUB 2 trillion are needed for infrastructure. At the same time, innovative and digital technologies are to be implemented, greatly improving business and public services. Fulfilling such ambitious objectives requires a coordination of efforts between infrastructure industries, the regions, equipment manufacturers, and the financial sector. How will fulfilling priority infrastructure development objectives affect regional policy? Which tasks will be undertaken by companies? What sources of funding for priority projects have been identified? Do Russian companies possess sufficient expertise to fulfil infrastructure development objectives, and what overseas experience and technology could prove beneficial? Which countries’ experience was drawn upon when preparing the government’s comprehensive plan?

Moderator:
Sergei Brilev — Anchor, Deputy Director, Russia TV Channel; President, Bering Bellingshausen Institute for the Americas

Panellists:
Oleg Belozerov — Chief Executive Officer – Chairman of the Executive Board, Russian Railways
Herman Gref — Chief Executive Officer, Chairman of the Executive Board, Sberbank
Dmitry Kozak — Deputy Prime Minister of the Russian Federation
Pavel Livinsky — General Director, Rosseti
Sergei Sobyanin — Mayor of Moscow
Peter Herweck — Executive Vice President for Industry, Member of the Executive Committee, Schneider Electric


Development Plans for the Russian Fuel and Energy Industry

Presentation of the Heat Supply System Efficiency Rating of the Russian Regions

In 2018, the Ministry of Energy of the Russian Federation continued their collaboration with the regions and expert community to draw up a heat supply system efficiency rating for Russian localities. Ratings of municipalities take place at the regional level, while ratings of regions take place at the national level. The rating evaluates efforts made by government bodies of all levels to create an environment conducive to a reliable, incident-free heat supply, a reduction in fuel consumption, a reduction in heat losses, the application of modern technologies in thermal networks and for use by the consumer, the updating of heat supply plans, and the implementation of the incorporated action plan. It does not only aim to measure a company’s success, but also to identify and publicize best practices. Among those attending the event will be representatives of regional ministries of energy, housing and utilities; energy companies, and the expert community. Discussions will focus on the results of the rating, and experience will also be shared on applying best practices in heat supply system management and in implementing modern technologies in the industry.

Moderator:
Tatyana Gurova — Editor-in-Chief, Expert magazine

Panellists:
Arseny Belenky — Director of the Government Relations Department, Quadra - Power Generation
Dmitry Vavilin — Minister of Industry, Construction, Housing and Utility Services, and Transport of the Ulyanovsk Region
Airat Sabirzanov — First Deputy General Director - Director for Economics and Finance, "Tatenergo"
Lidia Smolina — First Deputy Governor of Vladimir Region for Infrastructure, Housing, Utilities and Energy Development


Development Plans for the Russian Fuel and Energy Industry

Roundtable

The Development of Pricing on the International Oil Market: New Benchmarks, Currencies and Settlement Technologies

In partnership with St. Petersburg International Mercantile Exchange

The current pricing mechanism based on existing benchmarks has recently come in for criticism as a method of ascertaining a fair market price for oil. This is due to a significant fall in output at fields which largely account for the best-known price benchmark. However, new benchmarks are coming to the fore, based on more stable oil flows from the point of view of production volumes and quality characteristics. More accurate pricing will also facilitate the creation of benchmarks through direct quoting. There is an ever-increasing trend for pricing to instead be based on exchange contracts, in order to best reflect market value. Aspects related to settlements in national currencies and applying blockchain technologies are of no less importance. Will the leading benchmarks change over the next 3–5 years? Will the CIF and FOB markets lose ground? When will oil companies show more interest in direct quoting of Russian oil? What role will quoting in yuan play with regards Chinese petroleum storage reservoirs? How will the global crude oil market change as digital platforms and blockchain technologies develop?

Moderator:
Elena Telegina — Dean, Faculty of International Energy Business, Gubkin Russian State University of Oil and Gas (National Research University); Corresponding Member, Russian Academy of Sciences

Panellists:
Sergey Andronov — Vice-President, Transneft
Anatoly Golomolzin — Deputy Head, Federal Antimonopoly Service of the Russian Federation (FAS Russia)
Owain Johnson — Managing Director for Energy Research and Product Development, CME Group
Mark Quartermain — Vice President for Crude Trading and Supply, Shell International Trading and Shipping Company Limited
Denis Maximov — Deputy General Director for Economics and Finance, Zarubezhneft
Kirill Molodtsov — Aide to the Chief of Staff, Presidential Executive Office
Alexey Rybnikov — President, St. Petersburg International Mercantile Exchange
Murat Seitnepesov — General Director, Integral Petroleum SA
Pavel Sorokin — Deputy Minister of Energy of the Russian Federation
Matthew Thompson — Chief Strategy and Business Development Officer, Argus Media group
Joel Hanley — Editorial Director for European and African Oil, S&P Global Platts


Development Plans for the Russian Fuel and Energy Industry

Panel Session

The Strategy of Import Substitution in the Oil and Gas Industry: National Projects and Digital Technology

In 2015 the Ministry of Energy of the Russian Federation ratified a set of measures aimed at replacing imports in the country’s oil refining and petrochemical industries. These measures, which encompass targets to reduce the share of imports by 2020, are currently being implemented. A national project is under way, entitled “The establishment of a range of domestically produced technologies and high-tech equipment to develop reserves in the Bazhenov Formation”. It is not only focused on the potential to process 760 million tonnes of hydrocarbon reserves, but also to facilitate the country’s self-sufficiency in exploring and developing non-traditional oil and gas reserves. In addition, two new projects have been ratified: “Creating hydroconversion technology for petroleum feedstock with the aim of obtaining high-quality fuel, oil, and feedstock for petrochemical processes” and “Fine refining catalysts for petroleum feedstock (based on aluminium oxide)”. Oil and gas companies need to rapidly transfer to digital technologies in order for the industry to grow. This includes processes outlined in the plan to replace imports of software, which was ratified by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation in 2015. Under this plan, the share of software imported for the energy industry will be cut to 70% by 2020, and 50% by 2025. How effective is the National Project format as a platform to trial equipment and technology? What kind of testing centres need to be created to develop technologies for geological surveying, and for exploring and extracting hard-to-recover hydrocarbon deposits? What are the intermediary results in import substitution for the oil refining and petrochemical industries? What does a standardization system provide as an import substitution tool in Russia? How can experience from the Cyber Hydrofracking competition be replicated in the development of Russian application software?

Moderator:
Sergey Arkhipov — Head of the Department of Technology Partnership and Import Substitution, PJSC Gazprom Neft

Panellists:
Daria Kozlova — Head of Crude Oil Upstream and Technologies Direction, VYGON Consulting
Irina Korchuganova — Leading Specialist, Transneft-Sintez
Aleksandr Medvedev — Director for Technical Sales and Promotion of Products in the Domestic Market, Tube Metallurgical Company (TMK)
Sergey Rudenko — Head of Advanced Technologies Department, LNG Department, NOVATEK


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Gas-powered and Electric Vehicles in Russia: Possible Development Rates and Strategies

The rising numbers of cars in the world means that the burden on the planet’s environment is increasing, creating the demand for new types of transport and fuel. Vehicle manufacturers and innovators are actively working on creating infrastructure and new models of electric vehicles, as well as liquefied and compressed natural gas vehicles. In Russia, plans are also being implemented to develop the charging infrastructure for electric vehicles. In many regions, public transport and municipal vehicles already run on natural gas. International experience shows that it is possible to accelerate the speed and expansion of the alternative petrol/diesel fuel market significantly, due to the rapid development of infrastructure on key transport corridors and in large metropolitan areas, tougher requirements for purchases by public and municipal organizations in terms of public transport and the housing and utilities sector, regulation of how public transport is organized, and the subsidizing of vehicle conversion. What incentives could the Government of the Russian Federation support in order to achieve more ambitious goals for the development of the gas-powered and electric car market? What regulatory restrictions impede the wider introduction of alternative transport? What is the expected effect on the country? Are vehicle manufacturers and freight and passenger transport companies interested in changing the strategy for developing the market? What are the challenges facing the regions?

Moderator:
Vladimir Samokhvalov — Managing Partner, SBS Consulting

Panellists:
Yury Bayramov — Deputy Chairman of the Board for Operation and Road Safety, Russian Highways State Company
Gasan Gasangadzhiev — Head of the Housing, Utilities and Amenities Department, Government of Moscow
Shamil Gafarov — Deputy Prime Minister, Republic of Tatarstan – Chief of Staff, Cabinet of Ministers, Republic of Tatarstan
Iya Gordeyeva — Chairperson, Association for the Development of Electric, Unmanned, and Connected Transport and Infrastructure (AETI)
Anton Inyutsyn — Deputy Minister of Energy of the Russian Federation
Kirill Malinin — Deputy General Director, Neftmagistral
Yerlan Nurpeisov — General Director, Green Auto Service; Member of the Working Group of the Ministry of Energy of the Republic of Kazakhstan for Development of the Market of Gas Engine Fuel in Kazakhstan
Denis Pak — Director of the Department of Automobile Industry and Railway Engineering, Ministry of Industry and Trade of the Russian Federation
Denis Khramov — First Deputy Minister of Natural Resources and Environment of the Russian Federation

Front row participant:
Alexey Gogenko — Deputy CEO for Strategic Development, Central Scientific Research Automobile and Automotive Engines Institute (NAMI)


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Degasification, Extraction, and Disposal of Coalbed Methane

Coalbed methane poses a serious industrial and environmental problem. It leads to accidents causing fatalities, destruction, and company shutdowns. There is a need to conduct a systemic and constant analysis of international experience and to collect information on degasification, extraction, and disposal of coalbed methane and enclosing strata. A consolidated database of best international practice is also required, and would help improve coal mine safety in Russia and reduce methane emissions. What are the aims and objectives of Russia’s international Centre for the Study and Advancement of Best Practices in the Degasification, Extraction, and Disposal of Coalbed Methane? What methods, technologies, and technical resources to extract methane gas mixtures appropriate for disposal are required today? What is the benefit of disposing of and using coalbed methane in Russia’s energy mix, compared to traditional natural gas sources?

Moderator:
Valery Zaharov — Director, Institute for Comprehensive Exploitation of Mineral Resources of the Russian Academy of Sciences

Panellists:
Konstantin Kolikov — Head of the Department of Safety and Ecology of Mining, National University of Science and Technology MISiS
Evgeniy Kudinov — Deputy General Director - Chief Geologist, Gazprom Dobycha Kuznetsk
Andrey Panov — Acting Deputy Governor of the Kemerovo Oblast for Industry, Transport and Ecology
Oleg Smirnov — Chief of Aerologic Safety Department, SUEK
Sergey Shumkov — Deputy Director of Coal Mining and Peat Industry Department, Ministry of Energy of the Russian Federation


Development Plans for the Russian Fuel and Energy Industry

Panel Session

The Future of Russia’s Heat Supply

Russia’s heat supply network is being developed in line with Federal Law No.190-FZ dated 2010. This law lays the foundations for the economic relationships between all the participants of Russia’s heat supply market along the entire supply chain: from initial production to final consumers. The law “On Heat Supply” forms the basis for the new model of this sector, which is designed to attract capital and increase efficiency throughout the full production line. What are the development prospects for cities’ heat supply systems across the country? What is the optimum configuration for targeted investment in and the free pricing of thermal energy? Are existing regulatory tools (alt-boilers, benchmarks, long-term regulatory periods, concessions) compatible with major investment in heat supply system development? Can the country’s heat supply system become a leader in terms of large-scale infrastructure reforms in the context of the May Decree issued by the President of the Russian Federation?

Moderator:
Ekaterina Derbilova — Editorial Director, Vedomosti

Panellists:
Parviz Abdushukurov — Vice President for Thermal Business, Deputy General Director for Operations, Chief Engineer, Fortum
Aleksandr Vilesov — Director for Economics and Heat Sites, "T Plus"
Alexander Gusev — Governor of Voronezh Region
Sergey Esyakov — First Deputy Chairman of the Committee on Energy, The State Duma of the Federal Assembly of the Russian Federation
Andrey Klychkov — Governor of Orel Region
Vitaly Korolev — Deputy Head, Federal Antimonopoly Service of the Russian Federation (FAS Russia)
Vyacheslav Kravchenko — Deputy Minister of Energy of the Russian Federation
Natalya Porokhova — Head of Research and Forecasting Group, Analytical Credit Rating Agency (ACRA)
Rauzil Khaziev — General Director, Tatenergo
Alexey Tsedenov — Head of the Republic of Buryatia
Mikhail Shapiro — Member of the Committee on Entrepreneurship in the Housing and Utilities Sector, Chamber of Commerce and Industry of the Russian Federation; General Director, Danfoss

Front row participants:
Sergey Buharov — First Deputy General Director, Sibtek
Svetlana Grigoryeva — Head of Fuel and Energy Complex and Housing and Utilities Directorate of the Tambov Region


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Increasing the Efficiency of Oil Production: Responding to the Challenges

Hydrocarbon extraction is currently declining in Western Siberia, the country’s main oil and gas region. This is in spite of significant increases in expenditure and work. This decline can be explained by worsening geological conditions in the development of fields. Experts are predicting this trend to continue, which will lead to increased oil production costs and declining profitability. In order to avoid a fall in investment activity in the Russian hydrocarbon extraction segment, a range of mineral extraction tax benefits and special export duty rates have been put forward. What’s more, an experiment is due to begin on 1 January 2019, whereby a tax will be levied on additional income from hydrocarbon production, in which assessment will be partially based on the real extraction economy. That said, over the last six years the fiscal regime affecting the oil industry has worsened overall. For oil production in traditional regions not qualifying for benefits (around 60% of the total), this is even more apparent. Frequent changes to tax legislation and the introduction of additional levies have played a part in this regard. Crucially, this is in sharp contrast with the fiscal policy affecting major oil producers around the globe, where additional stimuli are being introduced and the tax burden reduced in order to accelerate the monetization of oil reserves. Russia has one of the highest levels of taxation in the world for oil production companies. Deductions are on average 68% of vertically integrated oil company revenues. Today, some of the most promising areas of investment in oil production are in developing hard-to-recover reserves (in the Khanty-Mansiysk Autonomous Area, for example, they account for 33% of all reserves) and enhanced oil recovery methods (which enable the industrial development of as-yet untapped oil reservoirs). However, these areas of increasing oil production efficiency are fairly costly, and are unprofitable in the current fiscal environment. The development of fundamental approaches and areas for boosting investment in oil production and methods of intensifying extraction is therefore a priority for the Russian oil industry.
Topics for discussion:
1. The overall state of the Russian oil production industry, current challenges, and the need to encourage increased production.
2. The introduction of a windfall profit tax on hydrocarbon extraction.
3. Encouraging enhanced oil recovery methods to fully realize resource potential.
4. The potential to extract oil in traditional regions.
5. Encouraging oil production in fields containing hard-to-recover reserves.

Moderator:
Mikhail Orlov — Partner, Head of Tax and Legal, KPMG Russia

Panellists:
Alexander Gladkov — Director of the Department of Oil and Gas Production and Transportation, Ministry of Energy of the Russian Federation
Alexey Govzich — Executive Director for New Technologies, Gazpromneft Science and Technology Centre
Alexey Sazanov — Director of Tax Policy and Customs Schedule Department, Ministry of Finance of the Russian Federation
Andrey Tereshok — Deputy Director of the Department of Oil and Gas Production and Transportation, Ministry of Energy of the Russian Federation
Gennady Fedotov — Member of the Management Committee, Vice President, Economics and Planning, PJSC LUKOIL
Denis Khramov — First Deputy Minister of Natural Resources and Environment of the Russian Federation

Front row participants:
Denis Borisov — Director, Moscow Oil and Gas Center, EY
Daria Kozlova — Head of Crude Oil Upstream and Technologies Direction, VYGON Consulting
Alexey Kondrashov — Senior Advisor, The Boston Consulting Group
Elena Korzun — General Director, Association of Independent Oil and Gas Producing Organizations "AssoNeft"


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Industry 4.0 Technologies in the Coal Sector

One of the most technologically conservative industries – coal mining – is also undergoing an industrial revolution. This revolution is largely being driven by information technology. The current technological revolution under way in numerous countries around the globe calls for the implementation of the so called Industry 4.0 Programme. As one of the fundamental areas of this programme, digital modelling will be applied in production processes, including through employing relevant data obtained using a virtual model of the surrounding physical world. How is coal being brought into the digital era? How is the digital transformation of coal production progressing? What stage is the coal industry digitalization process currently at? To what extent are coal companies’ IT strategies in line with today’s requirements for the global coal mining sector?

Moderator:
Dmitry Klebanov — Director for Development, VIST Group

Panellists:
Gennady Alekseev — General Director, HC SDS-Coal
Tatyana Goffart — Head of Scientific and Technical Department, Granch Ltd.
Sergey Mochalnikov — Head of Department of Coal Mining and Peat Industry, Ministry of Energy of the Russian Federation
Sergey Myasnikov — Deputy Head of the Department for Supervision in Coal Industry, Federal Environmental, Industrial and Nuclear Supervision Service (Rostechnadzor)
Sergey Nikishichev — Director, IMC Montan
Yury Plakitkin — Deputy Director for Research, Energy Research Institute of the Russian Academy of Sciences
Vladimir Tuzov — Chief Strategy Officer, SUEK


Development Plans for the Russian Fuel and Energy Industry

Panel Session

A City Without Accidents: Reliable Engineering Systems and High-Quality Utilities as a Foundation for Creating a Comfortable Environment

The most important factor determining the comfort level of an urban environment is the reliability of its communications engineering and the quality of its utility services. A number of cities have been able to achieve above-average results, resulting in accident-free operations, a reduction in the number of summer days without hot water and improvement in other services: water supply and treatment, gas supply, and the organization of billing for services and resources. Energy efficiency has increased at the same time as environmental impact has been reduced. What experiences can help inform the benchmarking of a city’s engineering systems and the quality levels of its utility services? How do reliability and quality indicators vary between Russian cities of various sizes? What best practices could become mandatory in the future? Which methods are being used for risk management?

Moderator:
Konstantin Polunin — Partner, Managing Director, The Boston Consulting Group

Panellists:
Sergey Krokhin — Deputy Chief Engineer for Heat Networks, Moscow Integrated Power Company
Alexander Osyka — Chief Engineer, Mosgaz
Vasily Savin — Partner, Head of Power and Utilities, KPMG in Russia and the CIS
Petr Sinyutin — Chief Executive Officer, Moscow United Electric Grid Company
Evgeniy Shushkevich — Deputy General Director, Head of Water Supply Directorate, Mosvodokanal


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Alternative Energy for Transport: Present and Future

In partnership with Russian Railways

Russian Railways is undergoing a period of transformation, in which particular attention is being paid to innovative technologies powered by alternative sources of energy. As environmental directives become stricter, the company is actively working on developing and implementing gas motor traction rolling stock and traction rolling stock that utilizes batteries. When it comes to its infrastructure facilities, the company is increasingly implementing innovative environmentally clean technologies, shifting their facilities from getting heat and electricity from mazut and coal to using liquified natural gas and successfully implementing cutting-edge technologies such as heat pumps and solar collectors. As the commodity market for liquified natural gas (LNG) grows, Russian Railways has developed and is implementing a programme for switching automobile transport to LNG and creating a new generation of rail and switch locomotives powered by LNG.
• Batteries – when and where they will appear in Russian Railways?
• The creation of a switch locomotive with a battery for working in passenger stations in major cities.
• Heat pumps – a new trend or the future of distributed generation?

Moderator:
Sergey Kobzev — Deputy Chief Executive Officer - Chief Engineer, Russian Railways

Panellists:
Andrey Zarucheyskiy — Head of Department Traction Rolling Stock, Railway Research Institute
Vladimir Kiriachek — Director, New Technologies LLC
Vladimir Kozlov — Managing Director for Investment Activities, RUSNANO Management Company
Igor Sazonov — Chief Designer, Scientific Research and Design Technology Institute of Rolling Stock JSC
Sergey Solovyev — Development Engineer Renewable Energy and Energy Efficient Technologies, Viessmann LLC
Vasiliy Cheremisin — Director of the Research Institute of Energy Saving in Railway Transport, Omsk State Technical University


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Increasing Efficiency in Municipal Heat Supplies

Every single urban resident is impacted by the quality and reliability of heat supplies. In recent years we have seen major energy companies disengage from businesses related to heat supplies, because they were loss-making. This creates a complex situation for regional and municipal authorities, forcing them to find other solutions to this issue using state funds and emergency measures. Crises occur more and more frequently, and that means there is a need for consistent, comprehensive approaches to resolving them and – more importantly – preventing them. What measures need to be taken at federal, regional, and municipal levels? What positive experience from crisis resolution and prevention can be recommended to regions and municipalities?

Moderator:
Viktor Semenov — President, Russian Heat Supplying

Panellists:
Dmitry Vakhrukov — Director of the Department of State Tariffs Regulation, Infrastructure Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation
Andrey Lukashov — Director for Strategic Development, Territorial Generating Company No. 2 (TGC-2)
Airat Sabirzanov — First Deputy General Director - Director for Economics and Finance, "Tatenergo"
Sergey Shal — Deputy Governor of Chelyabinsk Region


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Tax Reform in the Petroleum Refining Industry

A tax reform is under way involving the gradual abolition of customs duties for oil and petroleum products, and an increase in tax on extracting mineral resources. In order to compensate for oil refineries’ falling revenues, a return scheme for oil excise is to be put in place, with primary beneficiaries being plants producing car petrol for Russian consumers or providing raw materials for the petrochemistry industry. In order to curtail price rises for automotive fuel, a dampening mechanism is being implemented in the domestic market. An opportunity to sign modernization agreements will also be available, with the aim of modernizing oil refining.
What will the effect of this tax reform be on consumers in Russia and the EAEU?
How effective are the proposed mechanisms to protect against rising oil product prices?
What is the destination model for the tax and customs system as it pertains to Russia’s oil refining industry?
Are the prerequisites in place to increase investment in the development of Russia’s oil refining industry?

Moderator:
Denis Borisov — Director, Moscow Oil and Gas Center, EY

Panellists:
Pavel Karchevskiy — Adviser to Director General, Gazprom Neft
Alexey Kondrashov — Senior Advisor, The Boston Consulting Group
Dmitry Mazurov — Chairman of the Board of Directors, New Stream Group
Anton Rubtsov — Director of Oil Refining and Gas Processing Department, Ministry of Energy of the Russian Federation
Alexey Sazanov — Director of Tax Policy and Customs Schedule Department, Ministry of Finance of the Russian Federation
Gennady Fedotov — Member of the Management Committee, Vice President, Economics and Planning, PJSC LUKOIL


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Energy Efficiency and the Environment: Two Pillars of the Electricity Industry of the Future

Economic growth involves additional costs, which in turn create an extra environmental load for cities. Minimizing this load is an important part of the development of any modern city. Energy-efficient solutions make capacities available for new projects without damaging the environment. Less efficient power sources are removed in order to increase the electricity sector’s efficiency and reduce emissions of pollutants into the atmosphere. Cutting emissions can also be achieved by other measures, such as installing thermal power plant filtration systems, and by not using back-up fuels such as residual fuel oil or coal. Moscow’s electricity network is highly environmentally friendly: natural gas accounts for close to 100% of the Russian capital’s fuel mix. Using natural gas as a fuel prevents multiple pollutants from being emitted into the city’s atmosphere. What energy-efficient solutions are deployed by public utility services? How can we calculate the impact of adopting energy-saving technologies at facilities where power consumption depends on weather conditions? How can we minimize the environmental load of the power supply network on the city?

Moderator:
Zoya Zotova — Chairman of the Environmental Policy Committee, Moscow City Duma

Panellists:
Aleksey Bitiev — Head of Energy Mechanical Directorate, Mosvodokanal
Petr Bubley — Head of Ecology Service, Mosenergo
Aleksey Dyskin — Head of Production Directorate, Moscow Integrated Power Company
Yury Erokhin — Head of Industrial Safety and Ecology Directorate, Gazpromneft – Moscow Refinery
Vsevolod Ivanov — First Deputy General Director, Chief Engineer, Moscow United Electric Grid Company


Development Plans for the Russian Fuel and Energy Industry

Meeting of Chief Engineers of Electric Grids Digitalization of the Electrical Grid

Today’s need to digitalize the grid is predicated on the transition of production and transport to a single type of energy (electricity); the proliferation of distributed generation across the globe; the creation of microgrids; and the development of electricity and renewable storage devices which a consumer can install themselves, thereby becoming an electricity producer. Digitalization does not only translate to clear benefits to the consumer, but also extra costs borne by grid companies, and the need to change professional training programmes. How will self-operated and self-diagnosable digital electric grids affect reliability, expenses for the chief engineer, and quality of services for the population over the medium term? What needs to be done to ensure the greatest possible effect from digital grids from the very first years of their implementation? Will the rewards of digitalization be greatest in large cities or remote settlements? What competencies will an energy professional require to create, operate and repair digital grids? Should they be IT specialists with knowledge of energy, or energy specialists with knowledge of IT? Is a “digital electrician” required if digital grids can work without a person’s input?

Moderator:
Dmitriy Gvozdev — Deputy General Director – Chief Engineer, Rosseti

Panellists:
Vladimir Bolotin — First Deputy General Director – Chief Engineer, IDGC of Urals
Andrey Bragin — First Deputy General Director – Chief Engineer, Tyumenenergo
Dmitriy Vodennikov — Deputy Chairman of the Management Board – Chief Engineer, FGC UES
Ilshat Galimzianov — Deputy General Director – Technical Director, Grid Company
Pavel Goncharov — Deputy Director General for Technical Affairs – Chief Engineer, IDGC of South
Grabchak Evgeniy — Head of Department of Operational Control and Management in Electric Power Industry, Ministry of Energy of the Russian Federation
Dmitriy Zubritskiy — Acting First Deputy General Director for Technical Affairs – Chief Engineer, Yantarenergo
Vsevolod Ivanov — First Deputy General Director, Chief Engineer, Moscow United Electric Grid Company
Oleg Kinash — First Deputy General Director – Chief Engineer, Tomsk Distribution Company
Igor Kuzmin — First Deputy General Director – Chief Engineer, Lenenergo
Boris Misirov — First Deputy General Director - Chief Engineer, IDGC of Northern Caucasus
Oleg Pavlov — Deputy General Director – Chief Engineer, IDGC of Volga
Alexander Pilyugin — First Deputy General Director – Chief Engineer, IDGC of Centre
Igor Sorokin — Deputy General Director for Technical Issues – Chief Engineer, IDGC of Siberia
Oleg Shamshovich — Deputy Director – Chief Engineer, Bashkirenergo
Igor Shishigin — Deputy General Director for Technical Issues – Chief Engineer, Kubanenergo
Denis Yagodka — First Deputy General Director – Chief Engineer, IDGC of North-West


Development Plans for the Russian Fuel and Energy Industry

Meeting of Chief Engineers of Heat-Suppliers

Work is well under way on new operating rules for heat supply facilities and heat consumers, as outlined in the Russian Federal Law “On Heat Supply”. In the 15 years since the old rules were approved, the heat supply industry in Russia has changed dramatically. The new document will take these changes into account, which concern the improvement of heat supply management; the establishment of an institution to unite heat suppliers; and an increased role and independence for heads of operating companies and owners of heat supply facilities and heat consumers. What are chief engineers expecting from the planned changes to the regulation of the sector? What can be done before the new rules come into effect? How can equipment operation be effectively organized in line with the new rules, in addition to work with the energy supervision body responsible for checking for compliance?

Moderator:
Vasiliy Polivanov — General Director, Association of the Manufacturers of Quality Products for Heat Supply

Panellists:
Parviz Abdushukurov — Vice President for Thermal Business, Deputy General Director for Operations, Chief Engineer, Fortum
Andrey Lovtsov — Deputy Chief Engineering Officer, Irkutsk Energy Service Company
Lenar Magafurov — Deputy Chief Operating Engineer, Tatenergo
Anton Sviridov — Chief Engineering Officer, St. Petersburg Heating Grid
Alexey Sivyakov — Deputy General Director, Yaroslavskiye Energosistemy
Arkady Kharaim — Deputy Head of Advanced Development and Thermal Power Business Department, Gazprom Energoholding


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Light and Colour in the City: Safety, Aesthetics, and Energy Efficiency

Street lighting is an important part of creating a pleasant urban environment. The correct choice of lighting for various functional spaces helps solve a range of challenges, from increasing safety on the streets at night, to creating a festive atmosphere during special occasions. When attractively illuminated, a city’s sights become even more appealing to tourists, and new technologies are making it possible to increase the level of lighting without impacting energy consumption. Moscow has recently implemented a light and colour concept for the city, with visual comfort and artistic expression placed at the forefront. It is now one of the five best-lit cities in the world. Elsewhere, separate lighting projects are being successfully implemented in St Petersburg, Kazan, Vladimir, and numerous other cities in Russia. What experience can lie at the foundation when creating a city’s lighting environment? What lighting standards and targets can be applied for cities of various sizes in Russia? What are the advantages of modern light sources and light management systems, and how might they be developed in the future?

Moderator:
Alexander Bukatov — Deputy Director for Operations and Technical Development of Architectural Lighting and Illumination, Mossvet

Panellists:
Eric Benedetti — General Director, Signify Russia and CIS
Aleksandr Valiullin — General Director, Ipro
Denis Kruk — Head of the Department of Outdoor and Architectural Lighting, United Energy Company JSC
Aleksandr Fotin — Chief Project Engineer, International Lighting Engineering Corporation BOOS LIGHTING GROUP LLC
Irina Tsvetkova — Chief Specialist, Main Architectural and Planning Department of the Moscow Committee of Architecture and Urban Planning SBI


Development Plans for the Russian Fuel and Energy Industry

Presentation of the Energy Efficiency Rating of Grid Companies

In collaboration with the expert community, the Ministry of Energy of the Russian Federation will submit for discussion the results of the annual energy efficiency rating of grid companies, based on results for 2016–2017. The rating evaluates efforts made by companies to reduce losses in the grid, implement modern technologies, and optimize the development of infrastructure. It does not only aim to measure a company’s success, but also to identify and publicize best practices. Among those attending the discussion of the results will be representatives of regional and municipal ministries of energy, housing and utilities, energy companies, and experts.

Moderator:
Valery Presnyakov — Editor-in-Chief, Power and Industry of Russia Newspaper

Panellists:
Yury Andreenko — General Director, Far-Eastern Grids Company
Aleksandr Borisov — Member of the Presidium of the Management Board, Chairman of Committee on Energy Efficiency and Energy Saving, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses Opora Russia
Andrey Bragin — First Deputy General Director – Chief Engineer, Tyumenenergo
Ilshat Galimzianov — Deputy General Director – Technical Director, Grid Company
Nikolay Zuyev — General Director, Krasnoyarsk Regional Energy Company
Peter Kuruch — General Director, Kuzbass Power Grid Company
Dmitriy Mikheev — Deputy Director of Electric Power Industry Development Department, Ministry of Energy of the Russian Federation
Alexander Pilyugin — First Deputy General Director – Chief Engineer, IDGC of Centre

Front row participants:
Alexey Kireyev — Deputy General Director for Economics and Finance, Yugorsk Regional Electric Grid Company (YREGC)
Andrey Kucheyev — First Deputy Chief Executive Officer, North-Kuzbass Energy Company
Alexey Khokhlov — Head of the Electric Power Sector, Moscow School of Management SKOLKOVO


Development Plans for the Russian Fuel and Energy Industry

Panel Session

Power Engineering: Providing Modernization Plans for the Electrical Energy Industry

At present, proposals aimed at introducing a mechanism for attracting investment for the modernization of the thermal power industry are being finalized. The mechanism is designed to attract investment of up to 2 trillion for the modernization of up to 41 GW of thermal generation in the period to 2035 in the pricing and non-pricing zones of the wholesale electricity and capacity market. Modernization projects will be chosen on a competitive basis. Projects that envisage the extensive modernization of equipment that is in very poor condition and highly sought after in the power system will be permitted to take part in the competition. It has been proposed that the ranking of the winners’ projects (selection) should be carried out according to the estimated unit cost of electricity for consumers after the implementation of modernization projects. This will enable the most effective implementation of investment and minimize the investment burden on consumers. For the first time, the proposals envisage the establishment of unprecedentedly high requirements for the localization of production of equipment that will be used in modernization projects. Violation of these requirements will mean investors will not be able to receive a full return on capital investments. These requirements will therefore play an important role in making investors commit to implementing modernization projects. This session will include discussions on key approaches to setting requirements for the localization of equipment production, while considering the production and technical capabilities of Russian ferrous metallurgy manufacturers and manufacturers of power and power engineering equipment. The session will be attended by representatives of leading engineering companies, the metals industry, generation companies, and government bodies, as well as industry experts.

Moderator:
Stephan Solzhenitsyn — Senior Partner, McKinsey & Company

Panellists:
Vyacheslav Kravchenko — Deputy Minister of Energy of the Russian Federation
Mikhail Lifshitz — Chairman of the Board of Directors, Rotec
Kirill Molodtsov — Aide to the Chief of Staff, Presidential Executive Office
Vasily Osmakov — Deputy Minister of Industry and Trade of the Russian Federation
Yuri Petrenya — Deputy General Director – Chief Technical Officer, Power Machines; Member of the Global Energy Prize International Award Committee
Valery Seleznev — First Deputy Chairman of the Committee on Energy, The State Duma of the Federal Assembly of the Russian Federation
Oleg Titov — Director of Power and Gas Department, Siemens

Front row participants:
Viktor Orlov — General Director, RF State Research Centre JSC “RPA “CNIITMASH”
Denis Pasler — Chairman of the Management Board, Acting General Director, T Plus
Semyon Sazonov — General Director, Quadra – Power Generation


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Renewable Energy Sources in Russia: From the Wholesale Market to Supplying Energy to Isolated Regions

A foundation to develop distributed generation based on renewables has already been built in Russia. The ongoing renewable development programme has enabled new solar and wind generation facilities to be commissioned at a faster rate, and for a components industry to be built. Each year, installed capacity of renewable energy sources on the Russian wholesale market approximately doubles, and will continue to grow at a consistent rate. A Russian presidential decree entitled “On the Russian Federation’s national targets and strategic objectives for the period to 2024” also outlines new approaches to supplying renewable energy to isolated regions in the Arctic, Siberia, and the Far East. What’s more, in certain conditions, renewables could prove an effective option for small settlements in Central Russia, which are currently supplied through grid extensions. What solutions are required at the regional level to support new renewable projects, and what additional ways are there to attract investors? What risks should be considered when developing renewable energy sources in isolated regions and small settlements? Are renewable projects attractive to industrial companies and/or small and medium sized enterprises? Are there any barriers hindering the development of renewable energy sources which must first be removed? Which other countries offer experience in the development of renewable energy sources which could be applicable to Russia?

Moderator:
Anton Usachev — Director, Russian Solar Energy Association

Panellists:
Herve Amosse — Executive Vice President for Transportation, Telecom and Grid, Saft Groupe, Total Groupe
Igor Bryzgunov — Chairman, Russian Association of Wind Power Industry
Dmitriy Vasilyev — Head, Electrical Energy System Regulation Division, Federal Antimonopoly Service of Russia
Vadim Dormidontov — Vice President on Energy and Utilities, Gazprombank
Andrey Maximov — Deputy Head of the Department of Electric Power Development, Ministry of Energy of the Russian Federation
Yuriy Mirchevskiy — Director General, Peredvizhnaya Energetika (Mobile Energy)
Robert Paltaller — First Deputy Chairman of the Government of the Altai Republic
Igor Shakhray — General Director, Hevel Group

Front row participant:
Andreas Dreisiebner — Member of the Management Board, Solarspar Association


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Modernization of Thermal Generation

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?

Moderator:
Stephan Solzhenitsyn — Senior Partner, McKinsey & Company

Panellists:
Mikhail Andronov — President, Rusenergosbyt
Vasiliy Kiselev — Director, Energy Consumers Association
Vitaly Korolev — Deputy Head, Federal Antimonopoly Service of the Russian Federation (FAS Russia)
Vyacheslav Kravchenko — Deputy Minister of Energy of the Russian Federation
Alexei Kultyshev — Deputy Chief Executive Officer – Sales Director, Power Machines
Leonid Neganov — Minister of Energy of the Moscow Region
Fedor Opadchiy — Deputy Chairman of the Board, System Operator of the United Power System
Vasily Osmakov — Deputy Minister of Industry and Trade of the Russian Federation
Alexandra Panina — Chairman of the Supervisory Board, Council of Power Producers
Mikhail Rasstrigin — Deputy Minister of Economic Development of the Russian Federation
Eckhardt Rümmler — Chief Operating Officer, Uniper SE
Semyon Sazonov — General Director, Quadra – Power Generation
Valery Seleznev — First Deputy Chairman of the Committee on Energy, The State Duma of the Federal Assembly of the Russian Federation
Ekaterina Usman — Chief of Directorate for Competitive Pricing Development, NP Market Council Association
Vitaliy Khotsenko — Minister of Energy, Industry and Communication of the Stavropol Krai


Development Plans for the Russian Fuel and Energy Industry

Panel Session

The Russian Energy Grid: A Dialogue with Suppliers

Russia’s electrical grid needs wide-scale modernization, especially to counter its highly deteriorated capital assets. Russian producers must take the lead on this issue, with the support of international holding partners experienced in power grid digitalization. A digital transformation in electrical energy will open up new opportunities for domestic businesses that must be seized and utilized. Are equipment producers ready to rebuild their business processes from the ground up and make competitive offers for new digital grid infrastructure? How can dependence on imports be reduced? What has already been done and what measures need to be taken to facilitate effective cooperation?

Moderator:
Sergey Sergeev — Deputy General Director for Capital Construction, Rosseti

Panellists:
Vladislav Vorotnitsky — Deputy General Director for Marketing and Sales, Tavrida Electric; Head of the Reliable and Flexible Networks Subgroup, Energynet National Technology Initiative
Aleksandr Kozlovskiy — Member of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Economic Policy, Industry, Innovative Development and Entrepreneurship
Andrey Konev — Director General, Monitor Electric
Maxim Kostarev — Director for Innovation Development, EleSy JSC
Vladimir Naumov — Deputy General Director, Technical Director, Research and Production Enterprise EKRA LLC
Oleg Rudakov — General Director, Profotech
Valery Seleznev — First Deputy Chairman of the Committee on Energy, The State Duma of the Federal Assembly of the Russian Federation
Alexander Slavinskiy — Chairman of the Board of Directors, Massa (Izolyator Factory)
Oleg Tokarev — Deputy Director of Machine Tool Building and Investment Machine Building Department, Ministry of Industry and Trade of the Russian Federation
Igor Fleyshman — General Director, Energoservice Engineering Centre


Development Plans for the Russian Fuel and Energy Industry

Roundtable

Improving the Regulatory System in the Fuel and Energy Industry to Ensure Safe and Reliable Energy Supplies for the Consumer

The regulatory system governing the fuel and energy industry was drawn up over a period of more than 10 years. Despite the justifiably specific nature of legal regulation in the field, a great many aspects are more general, covering all sectors in the energy industry. This primarily concerns the legal framework supporting safe and reliable energy supplies for the consumer. What does the concept of safe and reliable energy supplies encompass? Is legislation governing the calculation and pricing of energy supplies effective? Does the existing regulatory system enable energy infrastructure investment projects to be implemented? Has a balance been struck on domestic energy markets between the interests of suppliers and consumers, extraction and generation companies, and transport and retail companies and the government? Does today’s legal regulation in the fuel and energy industry successfully protect the rights of energy market participants? In the immediate future, what changes need to be made to legal models encountered in energy markets to ensure safe and reliable energy supplies for the consumer?

Moderator:
Victoria Romanova — Head of the Energy Law Department, Kutafin Moscow State Law University (MSAL)

Panellists:
Leonid Akimov — Director of the Legal Defense Department, Rosseti
Anastasiya Bondarenko — State Secretary, Deputy Minister of Energy of the Russian Federation
Marina Vildanova — Vice President, St. Petersburg International Mercantile Exchange
Anna Efimova — Deputy Managing Director, Director for Legal Issues, Mosenergo
Inna Kashlikova — Head of the Legal Department, ATS Energo
Kirill Makarov — Acting Director of the Law Department, Ministry of Energy of the Russian Federation
Tamara Merebashvili — Head of the Corporate and Property Relations Department, Inter RAO Group
Nicolay Roshenko — Member of the Board, Head of the Legal Division, NP Market Council Association


Development Plans for the Russian Fuel and Energy Industry

Lecture

Renewable Energy in Russia: Current State and Future Prospects

Panellist:
Anatoliy Chubais — Chairman of the Executive Board, RUSNANO Corporation


Development Plans for the Russian Fuel and Energy Industry

Meeting for Participants in the Wind Industry The Challenges of Localizing the Production of Wind Turbines in the Russian Federation

One of the main requirements of legislation to support renewable energy in Russia is compliance with a high degree of localization of production. And with any type of development of wind power in Russia, it is unambiguously assumed that an industry for producing wind turbines will be created in Russia, and that the requirements for component manufacturers will be stepped up. According to the vendors who are currently producing wind turbines or their components, Russian companies are, generally, prepared to produce almost all the components for wind turbines. But, nevertheless, ‘growing pains’ cannot be ignored, and sometimes Russian companies that declare their readiness to produce components for wind turbines do not, in fact, always have high enough production standards, or equipment of a quality that vendors can accept. Today we already have the ‘first signs’ of the production of components for wind turbines: blades in the Ulyanovsk region, nacelles in Nizhny Novgorod and St. Petersburg, towers in Taganrog, and assembly production in Volgodonsk. But the potential of the market is huge, and many opportunities are not being taken up. Market experts have compiled a ‘localization map for component production’ for wind turbines, the active part of which includes a total of 15 enterprises, whereas the number of potential component manufacturers includes more than 200 factories and plants in various regions of the country. This is a powerful potential resource that could strengthen a new, emerging branch of power engineering in Russia. This new industry has a high export potential. The development of wind energy in neighbouring countries may be facilitated, and with the participation of Russian manufacturing firms. What experiences of setting up the wind industry in other countries should be taken into consideration? What production standards for component manufacturers are important specifically for the wind industry? What prevents the involvement of new participants in the localization process in Russia? Will the localization process facilitate the creation of a national line of wind turbines, and is this necessary for the industry?

Moderator:
Igor Bryzgunov — Chairman, Russian Association of Wind Power Industry

Panellists:
Viktor Garbev — Head of Sales for East Europe, Siemens Gamesa Renewable Energy SA
Alexander Korchagin — General Director, NovaWind
Dmitry Smolin — Localization Director, Vestas Manufacturing Rus
Oleg Tokarev — Deputy Director of Machine Tool Building and Investment Machine Building Department, Ministry of Industry and Trade of the Russian Federation


Development Plans for the Russian Fuel and Energy Industry

Panel Session

How May Utility Payments be Organized in a Way that is Convenient for the Public and Transparent for Suppliers?

This year was notable for the introduction of changes to the Housing Code, allowing for the transition to direct contracts between utility providers and consumers. Now, people can receive utility services from various suppliers: heat, gas, and power companies; water companies; and regional operators for handling household waste, which all have different charging schemes, seasonality of delivery, billing and payment standards, and systems of calculating and granting discounts. The volume of payments for utility services is huge, so a reliable, stable payment system for utilities, ensuring guaranteed delivery of payments from consumers to suppliers, is the key factor for the sustainable operation of all housing and utilities services. Against this background, the debate on the role of the Unified Information and Payment Centre in the system of settlements and interaction with consumers of housing and utilities services has once again become relevant. Should the Unified Information and Payment Centre become an obligatory part of the market for providing housing and utilities services? Which requirements/standards should they meet, and how may they guarantee protection against improper use of the funds paid by consumers and ensure transparency for consumers and service providers? Could the Unified Information and Payment Centre become an innovative driver in housing and utilities services and take the customer service system to a qualitatively new level, when digital technologies become part of our lives? Electronic services, digital management technologies, smart metering, blockchain, and smart contracts – are these just pretty words, or the real future of housing and utilities services?

Moderator:
Marina Fayrushina — Council President, ARRC

Panellists:
Aleksey Zaykov — General Director, USC – Financial Logistics
Valeriy Kandaulov — Deputy Director for IT, AIS Gorod LLC
Andrey Maximov — Deputy Head of the Department of Electric Power Development, Ministry of Energy of the Russian Federation
Aleksandr Mikhaylishin — Technical Director, Novosibirskenergosbyt
Aleksey Sitdikov — Deputy General Director for Development, Group of Companies TNS Energo PJSC
Denis Shabarin — General Director, Unified Information and Settlement Center of Leningrad Region