Russia Power and Gas Profile: From monopoly markets to limited competition

Introduction

The brief provides an overview of Russia's power and gas industries, and discusses the development of competition in the country's energy utility sector through Datamonitor's MCI framework.

Scope

• The brief looks at Russia's power and gas markets, both in their present state and in their likely development to 2008 and beyond.
• The brief covers the structure and trends in supply and demand, as well as the regulatory framework and the development of competition.

Highlights

The Russian power market is dominated by former monopoly RAO UES (Unified Energy System), which in 2004 accounted for 72% of the 217GW installed capacity, 69% of the 930TWh power production and 71% of the 831TWh end-user sales. The Federal Network Company (FSK), owner of the high-voltage grid, is also a RAO UES subsidiary.

In the Russian gas market, foreign investment opportunities exist mostly on the upstream side. Some German utilities, including Wintershall, are looking to invest in the development of new production fields in return for the right to export equity gas. Also, several production sharing agreements (PSA) have been in effect since the late 1990s.

Reasons to Purchase

• Have both the basic and hard-to-find Russian utility market data at your fingertips, within a convenient and concise format.
• Assess the competitive implications of Russian utility restructuring for your own company, in relation to its position within the energy value chain.