Energy Companies Ready to Invest up to 1.5 Trillion Roubles into Creation and Modernization of Main Equipment in Thermal Power Plants

Minister of Energy of the Russian Federation Alexander Novak answered journalists’ questions following the meeting of the Presidential Commission on the Strategy for the Development of the Fuel and Energy Industry and Environmental Safety.

The head of the energy agency explained that national energy companies are ready to invest in the modernisation of Russian thermal power plants. “In November of last year, the President issued an order to develop mechanisms for attracting investment to the modernisation of thermal energy, especially thermal power plants. Much work has been done on this issue, and today the commission reviewed suggestions for such an investment attraction mechanism. We need investments to increase efficiency, and energy companies are ready to make them. We’re talking about approximately 1.5 trillion roubles in investments,” said the Minister.

Alexander Novak clarified that these funds will be invested into the creation and modernization of the main equipment of thermal power plants, which will reduce costs. “This will all be implemented under existing energy rates, accounting for inflation. It will have a multiplier effect on the domestic machine building industry and will supply the budget with additional sources of tax revenue,” noted the head of the energy agency. He added that the Russian Ministry of Energy will be ready to present draft legislation, facilitating the investment, to the government by late 2018 and that the first projects will start in 2022–2024. 

The Minister also addressed the issue of oil production. “August’s production volumes will match those of July,” said Alexander Novak.