Federal Grid Company provided with RUB 482bn investment budget for 2016-2020

The Russian Energy Ministry has corrected the investment programme of the country’s Federal Grid Company of Unified Energy System (FGC UES) for 2016-2020, reducing it by 0.9% from the previous figure of RUB 487bn (€7.7bn) to RUB 482.3bn (€7.62bn), according to a company press release.

For 2017, planned capital investments were increased after a RUB 7.5bn (€119m) correction, from RUB 98.1bn (€1.55bn) to RUB 105.6bn (€1.67bn). A more substantial increase is envisaged for 2018, as investments for the year were increased by RUB 12.7bn (€201m) from RUB 91.5bn (€1.45bn) to RUB 104.2bn (€1.65bn). At the same time, however, the FGC’s planned capital investments for 2020 were reduced from the initial RUB 92.8bn (€1.47bn) to RUB 75.3bn (€1.19bn).

Overall, for 2016-2020, the FGC plans to launch 44,711 MVA of transformer capacities and 11,412 km of power lines. According to a company press release, during the five-year period the FGC will concentrate on the enforcement and development of the energy networks of the Central and North-western Federal Districts, in addition to the electrification of the BAM and Transsib railways. Other important tasks for the company are energy provision for oil and gas pipelines in Siberia and the Russian Far East.

FGC UES is controlled by the public company Rosseti, which owns around 80% of the business. The company is the energy provider in 77 Russian regions, servicing a territory of more than 15 million km2.