Projects in Russia Since Mid-2008 Breakup of RAO UES Russia Monopoly

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Researched by Industrial Info Resources (Sugar Land, Texas)--The world's largest electrical monopoly, consisting of 203 gigawatts (GW) of electrical generation, ended June 30, 2008, as the Unified Energy System "RAO UES" was broken into 24 independent electrical companies by the existing board of directors. It consisted of 139 GW of thermal generation, 44 GW of hydro generation, and 21.74 GW of nuclear generation. At the headquarters in Prospekt Vernadskogo, Moscow, Russia, a ceremony to mark the end of a company created in 1992 was held and the corporate flag was lowered and replaced by flags representing 24 energy companies. On this date, according to company CEO Anatoly Chubais, the company will cease to exist; however, RAO UES will continue to operate as one of the independent companies.

RAO UES was created after the fall of the communist system to reform Russia's electrical system and increase efficiency and transparency in order to attract the investment needed for electrical system development throughout the country and move toward a market-based electrical industry, as is common in the U.S and other western nations.

The new independent companies want to bring 43 GW of new generation online by 2012. As a result of the reorganization, shareholders will receive shares in the following electricity companies in exchange for their belongings in RAO UES of Russia.

• Five thermal Wholesale Generation Companies
• Thirteen Territorial Generation Companies
• Federal Hydro Generation Company
• Federal Grid Company
• INTER RAO UES
• Holding IDC
• RAO Energy System East

Industrial Info is tracking seven projects worth $18 billion kicking off in 2009 and beyond. Three of these projects are new nuclear power stations: the 2,400-megawatt (MW) Seversk Nuclear Station in Tomsk; the 2,300-MW Kaliningrad Nuclear Station; and the 1,150-MW Nizhegorod Nuclear Station in Nizhiy Novogorod.

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