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Electricity sector in Russia

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The electricity sector in Russia describes electricity in Russia. In the year 2008 electricity as gross production was produced with gas 48%, coal and peat 19%, hydro electricity 16% and nuclear power 16%.

Contents

History

The electric power industry has been a state monopoly since Soviet times. After the collapse of the Soviet Union Unified Energy System of Russia RAO UES was founded as state-owned (50%) company. From 1992-2008 it was the largest electric power holding company. After power outages such as the one in Moscow 2005, privatization started in 2006. RAO UES merged into UES FGC in 2008, besides spinning off more than 2 dozen companies. Price increase followed, 3-4 times the margin set by regulatory authorities. In November 2011, then prime minister Vladimir Putin tasked the Ministry for Economic Development (Russia), the Ministry of Energy (Russia) and the 'Federal Tariffs Service' to draft a government resolution restricting the profitability of electric utilities. This "restricted the ability of electric utilities to make money from providing services other than supplying electricity" As of 2013, Russia had no wholesale electricity market. The Ministry for Energy of Russia, concerned with price increases envisions a wholesale market under bi-lateral contracts between consumers and specific power plants. Inter RAO and Gazprom Energy Holding were lobbying for a different one.

Consumption

In 2008 the end use of electricity was 4.3% (726 TWh) of the world total (16,819 TWh). In 2008 the gross production of electricity was 5.1% (1,038 TWh) of the world total (20,181 TWh).

Mode of production

According to the IEA the Russian gross production of electricity was 1,038 TWh in 2008 and 930 TWh in 2004 giving the 4 th top position among the world producers in 2008. Top ten countries produced 67 % of electricity in 2008. The top producers were: 1) United States 21.5% 2) China 17.1% 3) Japan 5.3% 4) Russia 5.1% 5) India 4.1% 6) Canada 3.2% 7) Germany 3.1% 8) France 2.8% 9) Brazil 2.3% and 10) South Korea 2.2%. The rest of the world produced 33%.

Gas

The share of natural gas fuelled electricity was 48% of the gross electricity production in 2008 in Russia (495 TWh / 1,038 TWh.

Coal and peat

The share of coal and peat electricity was 19% of the gross electricity production in 2008 in Russia (187 TWh / 1,038 TWh).

Nuclear power

In 2008 Russian federation was 4 th top in the nuclear electricity production with 163 TWh (6% of the world total). According to the IEA 15.7% of Russian domestic electricity was generated by nuclear power in 2008. The top producers were the United States 838 TWh, second France 439 TWh and third Japan 258 TWh followed by Russia 163 TWh, South Korea 151 TWh, Germany 148 TWh, Canada 94 TWh, Ukraine 90 TWh, China 68 TWh, Sweden 64 TWh.

In 2009 Russia had in total 31 nuclear reactors and installed capacity in 2008 23 GW.

Nuclear reactor construction and export

In 2006 Russia had exported nuclear reactors to Armenia, Bulgaria, Czech Republic, Finland, Hungary, India, Iran, Lithuania, Slovak Republic and Ukraine. In Russia, the average construction time was in 1) 1965-1976 57 months and 2) 1977-1993 72–89 months, but the four plants that have been completed since then have taken around 180 months (15 years), due to increased opposition following the Chernobyl accident and the political changes after 1992.

Hydro power

In 2008 hydroelectricity was produced 167 TWh with 47 GW capacity. Russia had 5 th top position and 5.1% production of the world total hydro electricity. The top producers were 1) China 585 TWh, 2) Canada 383 TWh 3) Brazil 370 TWh 4) United States 282 TWh. The use of other renewable sources for electricity in 2008 was not significant in Russian Federation according to the statistics of IEA in terms of electricity volume in 2008.

Kyoto carbon allowances

The revenues from Kyoto allowances via Joint Implementation projects sales can be significant – in the billions of euros in the cases of Russia. If a number of (relatively strict) criteria were filled JI projects could be implemented during the Kyoto protocol agreement, for which no international third-party checking or UN approval was needed. According to Transparency International a lack of regulation in carbon trading poses the risk of fraud. In 2009 it was not in all cases clear which government organisations had the authority to sell the surplus and how transparently and accountably such transfers of public wealth were carried out.

References

Electricity sector in Russia Wikipedia