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Progress Report on the Implementation of RAO UES Investment Programme in December 2007

Moscow. 10 January 2008. RAO "UES of Russia" has today released a progress report on the implementation of its Investment Programme in December 2007.

On 5 December 2007, HydroWGC brought on line a 1 MW wind power unit (WPU). The WPU was built as part of the project to build the Kalmytskaya Wind Power Plant (WPP). It is expected that one WPU will generate 2.65 million kWh annually. By 2010, a total 9 MW of wind generation capacity will be brought on line. The investments in the project are projected at about RUB400 million.

On 7 December 2007, the CHPP-23 of OAO "Mosenergo" brought on line two DGA-5000 gas expansion ("detander") generators with the aggregate capacity of 10 MW. The gas expansion generators use environment friendly technologies to generate electricity. The efficiency of the CHPP's turbo-expansion engines is as high as 80 percent, compared to the 38 percent efficiency of the conventional steam power units widely used in the Russian electricity sector. The power unit will generate up to 80 million kWh of electricity annually.

On 24 December, HydroWGC brought on line the Amsarskaya HPP on the Maikchay River in Southern Dagestan. The HPP's installed capacity is 1 MW. and the average output will make 4 million kWh annually. The plant will supply electricity to the Rutulsky District of the Republic of Dagestan.

A significant amount of work to construct and modernize energy facilities was done by OAO "UES FGC". On 20 December, the North-West Transmission Grids branch of OAO "UES FGC" brought on line the 330 kV Rzhevskaya Substation with overhead cable transmission lines. The total amount of funds invested in the new substation project made RUB3.1 billion. The new substation is the first power grid facility of this voltage class to have been built in Saint Petersburg and the Leningrad Region over the past twenty years. It will help improve the reliability of power supply in the north-eastern part of Saint Petersburg.

On 25 December, the Urals Transmission Grids branch completed the first phase (220 kV) of the 500 kV Yemelino Substation project. The substation will support the large-scale expansion project underway at the Seversky Pipe Plant and will provide 110 MW of capacity to the plant, thus making it possible to put into operation a modern electric furnace shop in mid-2008. The 500 kV Yemelino Substation project will be completed in December 2008.

Also in December, the teams of FGC branches started work to modernize three 220 kV substations.

Last month, the RAO UES distribution companies launched modernization projects at seven 110 kV substations and completed repair and recovery works and brought five substations on line. In December, the Company put into operation about 70 km of transmission lines with the voltages of 0.4 kV to 110 kV.


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