Moscow, 3 August 2007. Presidential Plenipotentiary Representative to the Siberian Federal Okrug Anatoly Kvashnin, 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 Novosibirsk to discuss the current state and development prospects of the electricity sector in Siberia.

According to the forecast of the Russian Federation Government, by 2010, electricity demand will grow by an average of 4.9-6%. In the Siberian Federal Okrug, the demand is growing at the nearly same rate as Russia's average consumption growth rate, between 4.7% and 6.3%. It is expected that electricity demand will grow at the highest rate in the Krasnoyarsk Kray, Tomsk Region, Kemerovo Region, and the Republic of Khasassia.

In order to fully meet the growing electricity demand in the Siberian Federal Okrug, it is necessary to modernize the electricity infrastructure of the Okrug. 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 1.7-fold to 79,400 MW. Electricity generation will increase by 2.2 times, to 410.2 billion kWh in 2020 from 187.6 billion kWh in 2006.

About 3,400 MW of new generation capacity will be created in Siberia by 2011 under the RAO UES Investment Programme. RUB200 billion are expected to be spent on these projects and construction of the new power units scheduled to come on line before 2013 . They 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, by 2008, the capacity of Siberia's energy system will grow by 195 MW, specifically, after a new 115 MW unit is brought on line at the Novo-Kemerovskaya CHPP of OAO "TGC-12". 2011 will see the launch of a 200 MW unit at the Belovskaya TPP of OAO "TGC-12", a 185 MW unit at the Krasnoyarskaya CHPP, and a 110 MW unit at the Minusinskaya CHPP of "TGC-13". The capacity of the Berezovskaya TPP of OAO "WGC-4" and the Kharanorskaya TPP of OAO "WGC-3" will grow by 750 MW and 225 MW, respectively.

Further development of the hydro potential of the Siberian rivers will make it possible to put into operation, by 2009, the first 1,000 MW unit at the Boguchanskaya HPP, with the station's capacity to increase by another 667 MW by 2011.

In 2007-2010, OAO "UES FGC" will spend about RUB30 billion in fund in the trunk grid projects in the Siberian energy system. 3,000 MVA of transformer capacity will be brought on line, and the length of 220-500 kV electricity lines will increase by almost 3,000 km.