Moscow, 27 September 2007. Presidential Plenipotentiary Representative to the Central Federal Okrug Georgy Poltavchenko, Director of Electricity Department of the Russian Federation Industry and Energy Ministry Vyacheslav Kravchenko, Member of the Management Board and Technical Director of RAO "UES of Russia" Boris Vainzikher held a meeting today in Moscow to discuss the current state and development prospects of the electricity sector in the center of the European part of Russia.

According to the forecast of the Russian Government, by 2010, the country's demand for electricity will grow by an average of 4.9-6% annually. In the regions of the Central Federal Okrug this figure will exceed the average for Russia, reaching 5.2-6.2%. Such trend is expected to continue until 2020. According to the forecast, the electricity demand will grow at the fastest rate in the Belgorod Region, Kaluga Region, Kostroma Region, Moscow Region, Tambov Region and the city of Moscow.

In order to fully meet the growing electricity demand in the Central Federal Okrug, it is necessary to modernize the electricity infrastructure in the area. This goal is incorporated in the Master Plan for the Location of Energy Facilities until 2020 and the Investment Programme of RAO "UES of Russia" for 2006-2010.

Under the Master Plan, by 2020, the installed capacity of the regional energy systems will grow 1.65-fold to 74,200 MW. Electricity generation will increase by more than 1.7 times, from 224.2 billion kWh in 2006 to 391.8 billion kWh in 2020. Investments in the construction of new generation capacity will reach almost RUB2,000 billion.

Under the RAO UES Investment Programme, about 12,700 MW of new generation capacity will be created in the Center of Russia in 2007-2012. The projects will be financed with the energy companies' own funds and borrowings as well as the proceeds from generation companies' new share offerings.

Under the RAO UES Investment Programme, in 2007, the capacity of the Central 's energy system will grow by 1,340 MW, specifically, after new units of 450 and 325 MW units are brought on line at the CHPP-27 of OAO "Mosenergo" and the Ivanovskie PGU. In 2008, OAO "Mosenergo" will put into operation one more 450 MW unit at the CHPP-27 and a 450 MW unit at the CHPP-21. Also, a 330 MW coal-fired power unit will be launched at the Kashirskaya TPP of OAO "WGC-1", and the total capacity to be brought on line in 2008 will exceed 1, 700 MW. In 2009-2012, power units will be brought on stream at the Shaturskaya TPP of OAO "WGC-4", the CHPP-26 of OAO "Mosenergo", the Cherepetskaya TPP of OAO "WGC-3", the Ivanovskie PGU, as well as new generation capacity at the Tverskaya CHPP-3 and the Kostromskaya CHPP-2 of OAO "TGC-2". The transformer capacity of the Unified National Energy Grid (UNEG) facilities located in the Central Federal District will grow in 2007-2012 by 19,830 MVA, with 245.6 km of HV transmission lines to be built during the period.