KEMA Consulting to help with restructuring and liberalization of Russian power sector

Aug. 9, 2002 — The European Commission has chosen an international consortium led by KEMA Consulting to support the restructuring and liberalization process for the future electricity market in Russia.

The Russian electricity sector (RAO-UES of Russia) is the largest in the world. Power grids span 9,000 kilometers east to west through six time zones. The Federal Wholesale Electricity and Power Market (FOREM) was established by RAO-UES of Russia to create competition in the electricity sector.

RAO-UES of Russia lacks the necessary framework and experience to tackle the large number of barriers that need to be overcome to integrate the electricity sector into a dynamic market economy, KEMA Consulting said.

This project involves designing the power market structure and developing a legislative framework; developing technical codes and rules, such as the grid and metering codes; developing pricing rules and tariffs; creating a corporate and organizational structure; identifying technical improvements on measuring systems that are required to enable energy trading; implementing an automated information system to support the operational execution of the trade contracts in the future electricity market; and providing a comprehensive training program, including roles and functions of market participants in a liberalized power market.

This privatization and liberalization of the electricity sector in Russia is needed to attract the large number of investments necessary to upgrade the outdated electricity infrastructure sector from private investors and institutional banks such as The World Bank, EBRD, and European Investment Bank.

Approximately $70 billion is needed to rehabilitate and upgrade generation, transmission, and distribution facilities in Russia in order to ensure a reliable supply of electricity.

KEMA Consulting, a subsidiary of KEMA, is an international corporation with more than 450 energy specialists. We provide a full complement of services to enable our clients to implement the systems and processes necessary to achieve maximum reliability and improved customer satisfaction.

From tactical procedures and technological issues to strategic and executive-level decisions, we offer the energy industry a formidable partner to address the dynamic changes that are occurring in the marketplace. KEMA Consulting has assisted more than 500 clients in over 70 countries in achieving their strategic and operational goals. Applying global experience and regional insight, we support generation through the consumer side of the meter.

KEMA Consulting’s comprehensive services make them a provider of total business solutions for the energy industry. Please visit www.kemaconsulting.com for a complete profile of KEMA Consulting’s services.

Parent company KEMA is consulting, testing, and research and development firm in the electric power industry with headquarters in Arnhem, The Netherlands. With subsidiaries and offices in ten countries, more than 1,600 KEMA specialists serve the electric power industry worldwide. For more information on KEMA, please visit www.kema.nl.

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