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Press-release

Sakhalin Region Administration and RAO UES Sign an Agreement to Develop the Region's Energy System

Moscow 27 March 2008. Sakhalin Region Governor Alexandr Khoroshavin, RAO UES Management Board Chairman Anatoly Chubais, and Director General of OAO "Sakhalinenergo" Igor Butovsky have signed an Agreement designed to develop Region's energy system and ensure reliable power supply to customers. This document marks a milestone in the efforts by RAO UES to boost the development of the energy sector of the Far Eastern Federal Okrug.

According to forecasts, electricity consumption in the region will grow twofold by 2015 to 5.6 billion kWh (minimum growth scenario) from 2.8 billion kWh, or to 5.7 billion kWh (maximum growth scenario for the region's development) from 2.8 billion kWh in 2007. Such growth is mostly due to the rapid expansion of gas and oil production on the Sakhalin Island shelf.

To meet the energy needs and ensure reliable electricity supply to customers, in 2008-2013, it is planned to bring on line 446 MW of new generation capacity. An additional power unit with a capacity of 116 MW of electricity and 17,631.1 Gcal/h of heat will be built at the Yuzhno-Sakhalinskaya CHPP-1. The Sakhalinskaya CHPP-2 of 330 MW will help replace the retired capacity of the Sakhalinskaya CHPP.

In the region's distribution system, there are plans to bring on line 487.8 km of transmission lines of different voltage levels and the transformer capacity at substations will grow by178 MVA.

Under the Agreement, the total amount of funds to be spent on the projects in the Sakhalin Region will be in excess of RUB36.7 billion, of which over RUB27.8 billion and RUB8.9 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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