Moscow. 18 July 2007. Deputy Presidential Plenipotentiary Representative to the Privolzhsky Federal Okrug Georgy Matushkin, State Secretary/Deputy Minister of Industry and Energy of the Russian Federation Ivan Materov, member of the Management Board and Technical Director of RAO "UES of Russia" Boris Vainzikher, and the Governors of the regions comprising the Privolzhsky Federal Okrug held a meeting today in Nizhny Novgorod to discuss the current state and development prospects of the Okrug's electricity sector.

The key issues discussed at the meeting is cooperation of the federal and regional authorities and RAO UES energy companies in implementation of the Master Plan for the Location of Energy Facilities Until 2020, including the Investment Programme for the period until 2010 in the Privolzhsky Federal Okrug.

RAO "UES of Russia" has positive experience cooperating with some regional governments in the implementation of priority investment projects in the electricity industry. To date, RAO "UES of Russia" has signed similar agreements with 12 administrations of the regions experiencing energy shortages during the so-called "peak load periods". Another 17 agreements are expected to be concluded before the end of the year. Specifically, on 27 December 2006, an agreement was made with the Nizhny Novgorod Region Government.

Over the recent years, electricity consumption in the Privolzhsky Federal Okrug has been growing steadily. For instance, in 2006 energy use increased by an average of 4.2% yoy. According to the Forecast of the Russian Federation Government, electricity consumption rate in the Okrug will continue to grow by an average 3.9-4.6%.

Under the Master Plan for the Location of Energy Facilities, by 2020, over 8,300 MW of generation capacity is to be brought on line at hydropower and thermal plants, including over 4,500 MW of capacity to be created under the RAO UES Investment Programme for the Period Until 2010. Among the major projects is the construction of 800 MW combined-cycle units at the Permskaya TPP and 400 MW units at the Yayvinskaya TPP (both controlled by WGC-4). These projects are being implemented according to schedule. The total amount of investments that will be made by RAO "UES of Russia" in the projects to build new power plants in the next five years will be nearly RUB110 billion.

By 2010, the length of the bulk transmission (trunk grid) lines in the energy systems of the Privolzhsky Federal Okrug will have increased by almost 680 km, and by 2020, by 3,186 km. In the next five years, efforts will be made to create the power lines which will transport the power generated by the plants currently under construction and to ensure reliable power supply. Among the key projects is construction of the 500 kV line "Kamskaya - Vladimirskaya" to the Permskaya TPP and 500 kV line "Iriklinskaya TPP - Smelovskaya" and "Kostromskaya TPP - Nizhegorodskaya". By 2020, strengthening of intersystem links in the Privolzhsky Federal Okrug will be one of the priorities for the development of backbone grid facilities in the area. For that purpose, during the next decade, four 500 kV transmission lines will be put into operation: "Severnaya – Vyatka", "Pomary – Gazovaya", "Pomary – Udmurtskaya", and "Kurdyum – Frolovo".