More than $200bn to be invested in Russian power plants by 2020

The Russian power sector is plagued by several problems, notably the high degree of deterioration of generating and distribution assets, and high transmission losses. Most of the power stations in Russia were built back in the 1960s and 1970s, and have a very low efficiency ratio – typically 33-35%. The average age of equipment used in Russia’s power plants is 32 years, with oldest equipment typically found in hydro power stations while newer (relatively) equipment tends to be in nuclear power plants. In the case of thermal power plants, the peak commissioning levels were between 1959 and 1988, when three-quarters of all currently operational capacity was implemented. The average age of grid equipment is forty years. The age of the country’s power infrastructure and lack of modernisation has resulted in transmission losses having increased by 50% since 1991.

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