Massive investments into Russian energy industryThe modernization of energy production is one of Russia’s main priorities. For the coming years, experts expect an increase in energy demand by 1 percent per year. By 2035, about one-sixth of existing capacity is to be renewed. The focus is on the thermal power plants. For this reason, in November 2017, President Vladimir Putin approved a new program for the modernization of power plants.
For the program, 3.5 trillion rubles (equivalent to 50 billion euros) are available. The focus of the program is on gas and steam combined cycle power plants and combined heat and power plants. For the expansion, modernization and digitalization of the power grid, another heavy investment of 50 billion euros is needed. In addition, the energy companies are installing decentralized supply systems in remote regions.
The Russian government is promoting the construction of solar and wind farms to diversify power generation. By 2035, the capacity of green energy is expected to increase to 20 gigawatts. A wind energy development fund set up by Rosnano and the Finnish utility Fortum aims to raise EUR 1 billion to build new facilities.
The equipment for power plants and power grids should come primarily from Russian suppliers, as the Ministry of Industry wants it. As a result, the officials not only want to ensure the energy supply of Russia, but also strengthen the local mechanical engineering. As a result, some foreign manufacturers of power engineering, such as Siemens AG, Maschinenfabrik Reinhausen near Regensburg, and the Swiss concern ABB have therefore already opened their own productions in Russia.