TY - BOOK
T1 - Russian electricity market
T2 - Current state and perspectives
AU - Abdurafikov, Rinat
N1 - Project code: 17968
PY - 2009
Y1 - 2009
N2 - The Russian electricity market is currently in
transition. The restructuring of the sector has been
completed and former public vertically integrated
monopolies have been unbundled and partly privatised. The
government retained control in all the network companies,
the system operator, nuclear generation, and hydro
generation. The state retains control also via owner-ship
in several TGCs and WGCs in the strategic regions of
Moscow and Saint-Petersburg via the state owned gas
monopoly Gazprom.
The liberalization takes place within two price zones,
Europe and Siberia, where more than 90%, 913 TWh in 2007,
of Russian electricity consumption takes place. In the
rest of Russia, e.g. the Far East and isolated areas like
Kaliningrad, electricity is supplied at regulated rates.
Only a minor part of electricity in the price zones is
currently traded at free prices. The share of electricity
traded at free market prices will increase according to
the liberalization schedule, reaching ca 90%, all except
households, by 2011.
Wholesale electricity market bids are aggregated in a
detailed power system model of the Russian power grid,
taking into account the physical locations of the
facilities. The resulting 7700+ nodal market prices,
scattered across the 7 time zones of the Russian market
area, capture costs of congestion and load losses in the
grid. The price level of electricity seems to be rather
low at a glance - about 21 and 15 per MWh in Europe and
Siberia respectively. On the other hand, wholesale market
buyers have to pay for capacity availability, on average
around 3000 /MW monthly.
With greater share of electricity traded at free prices
there will be an increased need to hedge price risks. For
this reason a financial market is planned. There are also
plans for support schemes for renewable generation and to
limit environmental pollution as well as ancillary
services markets. Some areas do not experience a likewise
opening of the competition in Russia, for example the
fuel markets. Almost all natural gas is supplied by a
single vertically integrated company, coal markets are
local and oil has always been used only as a back-up
fuel.
AB - The Russian electricity market is currently in
transition. The restructuring of the sector has been
completed and former public vertically integrated
monopolies have been unbundled and partly privatised. The
government retained control in all the network companies,
the system operator, nuclear generation, and hydro
generation. The state retains control also via owner-ship
in several TGCs and WGCs in the strategic regions of
Moscow and Saint-Petersburg via the state owned gas
monopoly Gazprom.
The liberalization takes place within two price zones,
Europe and Siberia, where more than 90%, 913 TWh in 2007,
of Russian electricity consumption takes place. In the
rest of Russia, e.g. the Far East and isolated areas like
Kaliningrad, electricity is supplied at regulated rates.
Only a minor part of electricity in the price zones is
currently traded at free prices. The share of electricity
traded at free market prices will increase according to
the liberalization schedule, reaching ca 90%, all except
households, by 2011.
Wholesale electricity market bids are aggregated in a
detailed power system model of the Russian power grid,
taking into account the physical locations of the
facilities. The resulting 7700+ nodal market prices,
scattered across the 7 time zones of the Russian market
area, capture costs of congestion and load losses in the
grid. The price level of electricity seems to be rather
low at a glance - about 21 and 15 per MWh in Europe and
Siberia respectively. On the other hand, wholesale market
buyers have to pay for capacity availability, on average
around 3000 /MW monthly.
With greater share of electricity traded at free prices
there will be an increased need to hedge price risks. For
this reason a financial market is planned. There are also
plans for support schemes for renewable generation and to
limit environmental pollution as well as ancillary
services markets. Some areas do not experience a likewise
opening of the competition in Russia, for example the
fuel markets. Almost all natural gas is supplied by a
single vertically integrated company, coal markets are
local and oil has always been used only as a back-up
fuel.
KW - Russian electricity market
KW - restructuring
KW - electricity demand
KW - generation capacity
KW - liberalization schedule
M3 - Report
T3 - VTT Working Papers
BT - Russian electricity market
PB - VTT Technical Research Centre of Finland
CY - Espoo
ER -