Российская энергетика: новый инвестиционный цикл

2019 is already poised to be a landmark year for the Russian energy sector. A new cycle of investment activity has now begun in the energy system.
After years of discussion, the parameters of the thermal generation upgrade programme were finally set in stone early this year. The first six months will see the first competitive selection of investment projects, and the total volume of projects will reach 11 GW (with 41 GW upgraded by 2035). Total investments will reach about RUB 2 trillion.
The official decision to extend the renewable power generation development programme is expected to be announced this year, as part of which the construction volume of new generating capacities may reach an additional 10 GW before 2035.
The focus will be on the power supply network sector, in which Rosseti began fulfillment of its Digital Transformation Concept in December, 2018, for an extra RUB 1.3 trillion of investment in the course of its measures.
All of this and more, including how well Russia is keeping pace with global trends in electric power supply development, will be discussed at the 12th annual The Russian Power Industry: A New Investment Cycle conference organised by the Vedomosti newspaper.

09:30 – 10:00. Registration, morning coffee

10:00 – 12:00. Session 1. Upgrading the Russian electric power supply: renovation or a step towards the future?

Moderator
Maxim Bystrov, Chairman of the Board, NP Market Council association

The central question of the upgrade programme is the efficiency of the new equipment planned to replace old power stations at the end of their fleet life cycle. Consumers fear the majority of projects will be based on intellectually obsolete steam-power equipment, rendering it impossible to boost efficiency. The use of gas turbines and implementation of combined cycle projects is also on the table, but taking into account the current gas prices, localisation requirements and higher cost of capital investment, the competitive advantage of such projects without major subsidies is still questionable.

• How will investments be distributed among generation types, and which of them will be the primary focus?
• How do we find a balance of interest between the energy sector and its consumers?
• How will energy companies finance new projects?
• Heat supply reform: will the new model ensure stable cash flow?

Panelists
Boris Ayuyev, Chairman of the Board, System Operator of the Unified Energy System
Alexander Chuvaev, Executive Vice President, Head of the Russia Division, CEO, Fortum Corporation
Vadim Dormidontov, Vice President for Energy and Housing, Gazprombank
Alexander Khvalko, Deputy General Director - Sales Director, JSC «Concern Rosenergoatom»
Vitaly Korolev, Deputy Head, Federal Antimonopoly Service of Russia
Mikhail Livshitz, Chairman of the Board, The Ural Turbin Works
Tatyana Mitrova, Director, Energy Center, Moscow School of Management SKOLKOVO
Alexandra Panina, Chairman of the Supervisory Council, the «Council of Power Producers and Power Industry Strategic Investors» Association
Mihail Rasstrigin, Deputy Minister, Ministry of Economic Development of the Russian Federation
Sergey Vasilyev, Deputy General Director – Director of the Far East Division, RusHydro

12:00 – 12:30. Coffee break

12:30 – 14:00. Session 2. Digital transformation: when can a return on new investments be expected?

Moderator
Alexey Zhikharev, Partner, Power Industry practice, Vygon Consulting

Investments in the digitalisation of electric grids, including the implementation of smart metering, will reach more than RUB 1.3 trillion before 2030. On an annual basis, the financing of this investment programme segment will reach RUB 300 billion.
But despite the fact that innovations must be implemented to increase the efficiency of energy companies and the energy system as a whole, consumers are sceptical about the plans of energy sector representatives. They expect higher rates, an unwinding of the inflation spiral, and a mass transition to autonomous generation. The sector must also reconsider its energy infrastructure management model and the efficiency of the new technologies.

• Which digital technologies will ensure maximum economic benefits? Implementation priorities.
• How will smart metering modify the operation of sales organisations and affect nonpayment?
• Will the implementation of digital technologies in the energy sector require the modification of market rules or special rates?
• Data processing infrastructure: required capacity and investments.
• Competitiveness of Russian digital solution providers: is the sector ready for the next investment cycle?

Session speakers
Vasily Kiselev, Director, Community of Energy Consumers association
Alexey Kulapin, Head of Department of State Energy Policy, Ministry of Energy of the Russian Federation
Natalya Nevmerzhitskaya, Chairman of the Board, Association of Guarantee Suppliers and Power Sales Companies
Yevgeny Olkhovich, Deputy Director General for Strategic Development, PJSC ROSSETI
Carlo Palasciano Villamagna, Country Manager, Enel Russia
Dmitry Vasiliev, Head of the Department for Regulation over Electric Power Industry, Federal Antimonopoly Service of Russia

14:00 – 15:00. Lunch break

15:00 – 16:30. Session 3. Transition in the energy sector: how is the new power system being adopted by UES of Russia?

Moderator
Viktor Balyberdin, СЕО, SKM Market Predictor

Recently, the news has focused a lot on the continuing global shift in the energy balance, energy system architecture, and energy markets. The value of electrical power is being fundamentally reconsidered thanks to the development of carbonless energy and emerging options to store electricity, as well as manage its consumption in real time. When will the peculiar new projects that affect the models of electric power generation and consumption start influencing UES of Russia? Which technical solutions will be the most popular and efficient?
Within the scope of the Digital Transformation Concept, Rosseti has already initiated the first network projects for energy storage. Which technologies are planned to be used and how will they affect energy grid operation modes?
The Russian operator is developing what is known as «price-dependent curtailment of consumption,» or the Russian analogue of «demand response.» The mechanism has been working in Russia since 2017, but has yet to attract much consumer interest. Which measures are capable of influencing the situation and getting new participants interested? What are the prospects for the price-dependent curtailment of consumption in the retail power market, and how much money can it bring in?

• Grid accumulator prospects in Russia.
• Demand response: what is the optimal energy balance share?
• Renewable energy adoption: is it time to change approaches to energy system development planning?
• Trends in distributed energy development: scenarios and forecasts.
• Is the current market model efficient for the development of new energy? How can it be changed?

Session speakers
Alisher Kalanov, Head of Investment Division RES, RUSNANO Management Company
Dmitry Kholkin, Director of Energynet Infrastructure Center, the Center for Strategic Research «North-West» Foundation
Alexander Korchagin, CEO, NovaWind
Fyodor Opadchy, Deputy Chairman of the Board, System Operator of the Unified Energy System
Ilya Platonov, Head of e-Industries, Enel X Rus
Igor Shakhrai, CEO, Hevel Group
Alexander Starchenko, Chairman of the Supervisory Board, Community of Energy Consumers association
Fedor Veselov, Deputy Director, the Energy Research Institute of the Russian Academy of Sciences (ERI RAS)

16:30 – 18:00. Cocktail reception