Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

1. Department for External Economic and International Relations of Moscow
Moscow Energy Sector:
Investment Potential
Vakhtang Partsvaniya
Deputy Head of Foreign Economic Affairs Office
Moscow Investment Presentation in New York City, October 28, 2013

2. By 2025 the Population and Quality of Life in the Moscow Region will
Increase Significantly
Moscow region population,
million people
Yaroslav region
Tver region
22-26
17,5
The main population growth will come
from the Moscow region
Moscow
region
7,1
Moscow
Vladimir oblast
12,2
9-12
13-14
2025
2012
Smolensk
region
Total housing stock in Moscow region,
million square meters
600-800
The availability of housing in the Moscow
region will dramatically improve
40-50
м2/res.
430
19 м2/res.
Tula region
Ryazan region
2012
Increase in 1,5-2 times
Department for External Economic and International Relations of Moscow
2025
2

3. GRP in the Moscow Region will Increase 2.5 Times,
Its Distribution will Change Significantly
GRP per capita,
$1000 per resident
Yaroslav region
Forecasted GRP of Moscow,
$ billion
2025
Moscow
region
490
41
19
49
New York
London
410
Vladimir oblast
350
40
Paris
2012
43
Smolensk
oblast
2018
3% annually
2025
5% annually
Forecasted changes in GRP distribution in the Moscow region
2025
2012
Transportation
3%
Industry
Commercial
29%
sector
68%
Industry
15%
Transportation
3%
Commercial
sector
82%
Ryazan oblast
Department for External Economic and International Relations of Moscow
3

4. Energy-Output Ratio Indicators of GRP in Major World Cities
Energy consumption per $ 1 of GRP,
kWh / $ 1
0,17
Moscow
Hong Kong
0,14
0,1
Toronto
0,09
Paris
0,08
London
Tokyo
New York
Sydney
0,06
0,04
Energy consumption per capita, thousand
kWh per resident annually
New York
4,3
London
4
Warsaw
3,8
Kiev
Sydney
Energy-output ratio by GRP in Moscow exceeds
that of well-developed cities
6,1
Moscow
Paris
0,02
6,8
Tokyo
3,5
1,3
1
Energy consumption in Moscow is comparable to
that of well-developed cities
Department for External Economic and International Relations of Moscow
4

5. Electricity Consumption in the Moscow Energy Sector
MW
19000
18000
Peak electricity use was registered on February 13, 2012 and reached the point
of 17 560 MW at T -25 º C
17000
16000
16181
16200
15000
16617
15827
14000
13000
13670
12846
12000
11000
17560
17223 17112
11880
14230
14588
14755
13846
Peak load
12289
10000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Department for External Economic and International Relations of Moscow
5

6. Energy Generation Capacity by Sources
Imported energy
balance
Other
3,0%
Zagorsk GAES
2,0%
16,8%
Moscow HPPs
65,9%
Shatura
GRES-5
3,9%
Kashira GRES-4
5,3%
Department for External Economic and International Relations of Moscow
6

7. Energy Policy: Key Priorities
Priorities
Development programs
► Growth in power generating
base, expansion of grid
infrastructure, development of
energy retail sector
► General Scheme of Energy
Supply in Moscow by 2020
► Energy efficiency and
► The state program “Energy
introduction of energy efficient
technologies into the sector
Potential for
investment
projects
Saving in Moscow in
2012-2016 and up to 2020”
► Optimization of management
and state regulation in the
sector
Department for External Economic and International Relations of Moscow
Potential for
cooperation
7

8. Power Generating Capacity Development
million USD
1 000
800
600
692
710
693
240
265
273
2012
2013
2014
601
437
443
314
345
369
2015
2016
2017
400
200
0
Modernization and Reconstruction
New construction
Total 2012-2017:
5.382 billion USD
Department for External Economic and International Relations of Moscow
8

9. Grid Infrastructure Development
million USD
2 400
2 000
551
646
634
1 600
1 200
1 624
800
400
452
540
579
1 646
1 069
1 341
1 150
1 299
2016
2017
0
2012
2013
2014
2015
Modernization and Reconstruction
New construction
Total 2012-2017:
11.531 billion USD
Department for External Economic and International Relations of Moscow
9

10. Energy Efficiency Policy
million USD
1 600
301
279
127
105
120
1 200
800
1 391
1 317
1 333
1 333
1 333
2012
2013
2014
2015
2016
400
0
Non-Budget Investments
Moscow Budget Sources
Total 2012-2016:
7.639 billion USD
Department for External Economic and International Relations of Moscow
10

11. New Technological Phase in Energy Sector
Energy Generation
EC
34%
In gas sector – replacing stream power cycle with combined-cycles
EC
34%
In the coal sector – applying Circulating fluidized
Bed Technology and Virtual Valve Technology
EC
>50%
EC
42-46%
In the hydropower sector – developing pumped-storage hydro stations
and moblie power plants
Electrical
network is a
passive
element of the
energy system
System
management
through
administrative
methods
Energy Distribution
Applying Flexible AC Transmission Systems (FACTS),
new energy distribution to the direct covert (DC Converters),
technologies, high temperature superconductivity technologies
Energy Dispatching
Sweeping update of information and information technologies based
on SCADA/EMS.
Development of three-tiered vertically-integrated dispatch center
Creation and maintenance of the electricity market, ancillary services
market and balancing market
Department for External Economic and International Relations of Moscow
Electrical network are
becoming an active
part of power
system able to change
the flow of energy and
electricity
System
management
through
economically
motivating market
participants
11

12. Moscow Energy System Structure: Key Companies
Federal
Government
Natural monopolies
Moscow
Government
E.ON
51%
54%
80%
MRSK
Holding
Gazprom
15%
20%
FSK UES
58%
5%
100%
RusHydro
SO UES
INTER
RAO UES
54%
51%
13%
75%
78%
100%
OGK-4
(GRES-5)
Zagorsk
GAES
27%
Competitive sector
Energy generation
OGK-6
(GRES-24)
31% 51%
Monopolistic sector
Energy transmission
Mosenergo
(15 city HPP)
100%
MOESK
MES Center
OGK-1
(GRES-4)
100%
OEK
100%
Monopolistic sector
Dispatch management
Moscow RDA
51%
Competitive sector
Energy retail
Mosenergosbyt
Moscow Energy System
Department for External Economic and International Relations of Moscow
12

13. Investment Attraction Mechanisms
Competitive Sector
Monopolistic Sector
Additional shares issued in favor of
private investors
Additional shared issued in favor
of the state
Investment guarantee mechanism
Proceeds from the state budget
Private investments in local projects
completion
Fees for technical connection to
electricity network
Most investment mechanisms are the result of energy sector reform as well
as the creation of market conditions
Department for External Economic and International Relations of Moscow
13

14. Moscow Energy Sector Perspectives
2030
Vision of Moscow energy
sector 2030
2020
General Scheme of
Energy Supply in
Moscow by 2020
2016
5-year investment programs
by energy companies
2012
14
2012
2016
Department for External Economic and International Relations of Moscow
2020
2030

15. Department for External Economic and International Relations
Address: 13, Tverskaya str., Moscow, 125032
Tel.: +7 (495) 633-68-66
Fax: +7 (495) 633-68-65
www.dvms.mos.ru
www.investinmoscow.ru
E-mail: dms@dms.mos.ru
INVEST IN MOSCOW