Peretok Light: highlights of the Russian and global power sectors for September 23 - October 1
Novak: “The indicators of the energy strategy of the Russian Federation until 2035 will be updated by 5% max”Tomorrow, the major event of the year in the electric power industry - “Russian Energy Week” (REN-2019) will be started in Moscow Manege. Refer to traditional “Peretok” review for information background relevant as of 10 days before the start of REN-2019.
The market is currently between investment cycles; many players in the sector are determined with long-term strategies. At the same time, the Ministry of Energy resumed work on Energy Strategy-2035, which the authorities have not been able to approve for the fifth year due to the revision of plans under the influence of sanction pressure and the lack of a forecast for the country's socio-economic development for the same period, for which the Ministry of Economic Development is responsible. In mid-September, consumers asked the head of the Ministry of Energy, Alexander Novak, to return the Energy Strategy-2035 project to the initial stages of development in order to take into account updated initial parameters. On September 25, it became clear that the Ministry of Energy "did not hear" this proposal.
Unipro will provide RUSAL with a discount under the settlement agreement on the “case of Berezovskaya state district power station”
The Cabinet of Ministers postponed the start-up date of TPPs in the Crimea, exempting Rostec from fines for late delays
The Ministry of Energy submitted to the Cabinet of Ministers a project to extend the “Far Eastern mark-up” until 2028On September 27, it became known that the Ministry of Energy prepared a project providing for extension of the “equalization” of energy tariffs in the Far Eastern Federal District until 2028. The energy market opposed extension of preferences, effectiveness of which has not been proved for the regions. Deputy Prime Minister, Yuriy Trutnev, was one of the key lobbyists to continue subsidizing, the idea was generally approved by the President, Vladimir Putin, but the Ministry of Energy promised to reduce the list of beneficiaries, making support more targeted.
NLMK begins construction of associated gas thermal power plant with a capacity of 300 MW for 35 billion RublesHowever, timid attempts of regulators to reduce the "non-market" financial load on energy buyers are unlikely to shake the desire of individual industrial consumers to close their energy requirements with their own generation. On September 27, NLMK announced the launch of a project for construction of 300 MW associated gas thermal power plant. After commissioning of this facility, NLMK’s “energy self-sufficiency” will grow from current 64% to 95%.