MAIN LEGISLATIVE ACTS

Federal Law No 35-FZ “On the Electric Power Industry” dated 26 March 2003

Federal Law No 36-FZ “On the Specifics of Electric Power Industry Functioning during the Transition Period, Introduction of Amendments to Certain Legislative Acts of the Russian Federation, and Repeal of Certain Legislative Acts of the Russian Federation due to the Adoption of Federal Law “On the Electric Power Industry”

Federal Law No 261-FZ “On promoting preservation and energy efficiency” dated 23 November 2009

Federal Law No 190-FZ “On heat supply” dated 27 July 2010

Government Resolution No 1172 “On the establishment of the Rules of Wholesale Electricity and Capacity Market” dated 27 December 2010

Government Resolution No 1178 “On the price formation applicable to regulated price (tariffs) in Electric Power Industry” dated 29 December 2011

Government Resolution No 442 “On the functioning of the Retail Markets for Electric Power and on complete and (or) partial limitation electrical power consumption” dated 4 May 2012

Government Resolution No 449 “On the mechanism of promoting the use of renewable energies at the Wholesale Electricity and Capacity Market” dated 28 May 2013

Government Resolution No 861 “On the establishment of the Rules of non-discriminatory access to services of electric power transmission, of dispatch management, of trading system management, of technological connection to the grid” dated 27 December 2004

Government Resolution No 24 “On Approving the Standards for Information Disclosure by participants of Wholesale and Retail Markets for Electric Power” dated 21 January 2004

INSTALLED GENERATION CAPACITY

Total installed generation capacity of Unified Power System of Russia as of January, 1 2018 reached 239 812 MW.

Installed generation capacity by fuel type in 2017 (%)*

* According to System Operator

Total electricity production in 2017 amounted to 1 054 TWh (+0,5% to 2016). More than half was generated by thermal power plants.

Electric power production by fuel type in 2017 (%)*

* According to System Operator

For more information on the functioning of the electric power system of Russia please visit the Automated Information System “Electricity and Capacity Markets”.

The System is run by the Association “NP Market Council” to fil the lack of analytical and statistical information on the industry and will become available in English in the nearest future.

ELECTRIC POWER INDUSTRY PARTICIPANTS

According to the Federal Law No 35-FZ “On the Electric Power Industry” dated 26 March 2003 power industry participants are entities that generate electricity, heat and capacity, purchase and sell electricity and capacity, supply power to consumers, provide services related to electricity transmission, perform dispatching activities in the electric power industry, conduct retail sales of electricity (capacity), organize the purchase and sale of electricity and capacity.

The operation of the Wholesale Electricity and Capacity Market is based on a combination of state-controlled technological and trading infrastructure, on the one hand, and organizations interacting among themselves in a competitive environment, generating and selling electric power, on the other hand.

To obtain a status of the Wholesale Market Participant an organization must comply with requirements of the Wholesale Electricity and Capacity Market Rules and the Wholesale Market Trading System Accession Agreement.

In accordance with the Federal Law No 36-FZ it is prohibited to combine monopolistic activities (transmission and dispatch) with competitive activities (production, purchase and sale of electricity) within the same wholesale market price zone. There are two market price zones: Zone 1 - the European Part of Russia and Ural, Zone 2 – Siberia.

The unbundling requirements are not applied in non-price zones of the wholesale market where electricity and capacity are sold according to special rules at regulated prices (Arkhangelsk and Kaliningrad regions, the Komi Republic, the regions of the Far East) and on technologically isolated territories.

GEOGRAPHY OF THE WHOLESALE ELECTRICITY MARKET*


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