UES to supply power

Russian electric utility UES has reached an agreement with Germany`s Bayernwerk AG and Austria`s Verbund to supply power to the two utilities. UES is also reported to be discussing a similar deal with RWE Energie of Germany.

UES has agreed to deliver 1200 MW per year – 600 MW each to Bayernwerke and Verbund. Industry analysts believe that the deal will give both groups a strong competitive position in the European electricity market. Revenue for UES is estimated to be between $62m and $142m per year.

RWE Energie and UES are seeking to establish a converter to enable the Russian company to export its power.