Russia outlines potential $620bn spend in power infrastructure upgrade

The Ministry of Energy of the Russian Federation has presented its financial estimates for modernization and greenfield development in the power generation sector until 2035.

During a meeting with Deputy Prime Minister of the Russian Federation Arkady Dvorkovich, the ministry’s officials announced an estimated $620bn (3,5 trillion rubles) will need to be released by 2035 for the purposes of investing in construction and modernization of the country’s power facilities.
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The amount of money refers to financial resources to originate after the accomplishment of a CDA program (Capacity Delivery Agreement).

Initially, the ministry had stated that financial resources needed for modernization of thermal generation capacities would equal 1,5 trillion rubles. Updated calculations have now been made taking into consideration the development perspectives of power companies.à‚ 

Meanwhile RIA Novosti reports that Siemens expects to supply equipment to Russian energy companies under the modernization programme. The pledge was made by Dietrich Màƒ¶ller, the President of Siemens Russia and Central Asia, on the sidelines of the Russian Investment Forum held in Sochi.

Màƒ¶ller added that it is an ambitious programme that requires serious capital investments and equipment supply. Siemens hopes to give a full load to its local production in Russia (there are 10 Siemens manufacturing facilities operating in Russia).

Màƒ¶ller added that Siemens is not planning to expand localization of its production, as for gas turbines the localization level is about 55%, and they are considered to be Russian-manufactured.

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