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Press-release

RAO UES and Ryazan Region Government Sign Cooperation Agreement to Develop the Region's Energy System

Moscow, 18 February 2008. Ryazan Region Governor Georgy Shpak and RAO UES Management Board Chairman Anatoly Chubais have signed a Cooperation Agreement to develop the energy system of the Ryazan Region.

In the next few years, a number of large-scale investment projects will be implemented in the region, which will create demand for additional generation and grid capacity. These projects include the modernization and expansion of the Ryazan Oil Refinery owned by OAO TNK-BP, the construction of a cement mill owned by OAO "Eurocement", the glass works owned by Gardian-Steklo, and a pharmaceutical factory.

According to forecasts, electricity consumption will grow 1.1-1.3-fold by 2015 to 7.5 billion kWh (minimum growth scenario) or 8.5 billion kWh (maximum growth scenario for the region's development) from 6.3 billion kWh in 2007.

To meet the energy needs and ensure reliable electricity supply to customers, it is planned to increase the installed capacity of the Ryazan Region's power plants to 4013 MW by 2012. Specifically, WGC-6 is to bring on line 110 MW of new capacity by 2009 at the TPP-24, while TGC-4 will complete by 2010 the modernization of the Dyagilevskaya CHPP, whose capacity will increase by 190 MW.

The Agreement provides for the construction and modernization of the region's power grid infrastructure. In the bulk transmission grids sector, 500 MVA of transformer capacity will be brought on line after a major overhaul at the Yamskaya, Sasovo, and Zarechnaya Substations (all three 220 kV). FGC also plans to build links from the double-circuit 220 kV power line "Ryazanskaya TPP – Yamskaya" to the Fakel substation (110 kV) and the 200 kV transmission line "Novomichurinsk – Fakel".

In the region's distribution system, it is planned to build 17 transformer substations with an aggregate capacity of 646.3 MVA and 908.2 km of transmission lines.

Under the Agreement, the total amount of funds to be spent on the projects in the Ryazan Region will be in excess of RUB23.1 billion, of which RUB14.3 billion and RUB8.7 billion will be invested in the power generation sector and grid infrastructure, respectively.

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Contact Information:

Stas Degtyarev
Press Office Expert
+7 (495) 710-6239

Shareholder Relations
+7 (495) 620-1609


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