During March 24–26, 2010, Saint Petersburg is hosting the 10th Saint Petersburg International ENERGY FORUM. The future development of the energy sector is discussed by more than five hundred executives of energy and petrochemical companies, representatives of the sectoral Ministries and Agencies, and investment and consulting companies from Russia, Norway, Slovenia, Turkey, Finland, Ukraine, and other countries. Traditionally, this significant federal event makes it possible to formulate different proposals for the purpose of energy conservation and enhancement of energy efficiency in the Russian economy.

On March 25, 2010, the ENERGY FORUM was attended by an IDGC Holding joint delegation headed by Pavel Okley, Deputy Director General – Chief Technical Officer.

The IDGC Holding representatives highly appreciated the significance for electric distribution grid companies of the Saint Petersburg International Forum ENERGY FORUM organized under the auspices of the Ministry of Energy of the Russian Federation, Office of the Plenipotentiary of the President of the Russian Federation in the Northwestern Federal District, Government of Saint Petersburg, Government of the Leningrad Region, Chamber of Industry and Commerce of the Russian Federation, and the Federation Council Committee for Natural Resources and Environmental Protection. According to Pavel Okley, the ENERGY FORUM aspires to become a business venue for not only discussing the current situation and the future development of the Russian electric distribution grid sector, but also demonstrating specimens of modern high-technology energy products.

One of the top strategic priorities of IDGC Holding and its subsidiaries is to reduce the physical depreciation of equipment, currently reaching 69%. New technical solutions are required to reduce the high electricity transmission losses, estimated at about 8.7% of Russia's total electricity transmission in 2009. These and other problems and proposed remedies for these challenges were thoroughly considered at the Forum by the representatives of the IDGC Holding subsidiaries Lenenergo and IDGC of the Northwest.

At the Forum exhibition, IDGC Holding and Lenenergo hosted a joint stand, where expert consultations on network connection were provided to exhibition visitors.

At the Forum conference "Metropolis Energy: Development of Large and Medium Municipal Energy Facilities Using Energy-Efficient Technologies and Modern Engineering Solutions," IDGC of the Northwest Deputy Director General and Chief Operating Officer Georgy Turlov made the presentation "Challenges Faced While Implementing Technical Reliability and Energy Conservation Solutions for Electric Grids of Large Cities in the Northwest of Russia." According to Georgy Turlov, the present state of the Company's fixed assets does not make it possible to fully meet the demand for network connection. According to Georgy Turlov, in five of the eight large cities in the Northwest (Arkhangelsk, Vologda, Murmansk, Pskov, and Cherepovets), he said, the number of main substations that are closed for connection of new customers equals or exceeds 50% of the total number of 150-110-35-kv substations. However, these are the cities where most considerable increase in electricity consumption is expected in the years coming.

This problem can be solved through the rehabilitation and replacement of physically depreciated and outdated electric grid equipment. In this context, electric distribution grid facilities are in critical need for modern and highly efficient equipment (for example, reactive power and voltage control devices), efficient analysis and monitoring technologies, metering systems and devices, and modern technical means for grid operation mode control. Relevant solutions will help to make the best use of resources and equipment and reduce consumption under peak-load conditions. Adoption of Smart Metering technologies will make it possible to implementation new principles for interaction among grid companies, generating companies, and electricity consumers.

Lenenergo’s Director for Technical Development Maxim Artemyev addressed the conference with the presentation "Meeting Challenges in the Development of Electric Energy Systems in Saint Petersburg and the Leningrad Region." He emphasized the necessity for adoption of modern energy-efficient technologies and equipment, enhancement of distribution grid automation, and stage-by-stage construction and rehabilitation of electric facilities.

The speakers emphasized the need for more development investments to meet the toughest challenges facing the Russian electric distribution grid sector. One of the main instruments for attracting investments is the transition to the tariff regulation system based on an economically feasible return on investment (Regulatory Asset Base, RAB).