The chief executive of RAO "UES of Russia" praised the Russian Government's broad approval of the Master Plan for Location of Energy Facilities until 2020, saying that "never since the GOELRO plan adopted back in the 1920s has Russia had such a large-scale and comprehensive programme for electricity industry development.

According to Mr. Chubais, it is of crucial importance that the Master Plan was prepared taking into account the demand in different regions of Russia, their anticipated electricity consumption growth rates and plans for siting new energy-intensive operations. "In fact, the electricity industry development programme for the next 15 years adopted today is the first document of its kind in the Russian economy. So far, no other industry has such a detailed and comprehensive plan that would unite the investment programmes adopted by all market participants into a coordinated package," said Anatoly Chubais.

Mr. Chubais stated that it is vital to reinvent the strategic planning system for the electricity industry in a market environment. He highlighted that the Master Plan takes into account, among other things, a five-year investment programme on a project-by-project basis for the electricity sector through 2010 which is already being implemented.

Head of RAO "UES of Russia" said that the Master Plan provides for the use of advanced power engineering equipment, including combined cycle technology, coal circulating fluidized bed combustion of coal, vigorous development of pumped storage and tidal hydroelectric generation, as well as cutting-edge technologies in the power grids.

According to Mr. Chubais, the Master Plan will pave the way for bringing the electricity industry to a new level of efficiency, including by increasing the coefficient of efficiency, reducing the specific fuel consumption rates, enhancing flexibility and manageability of the UES of Russia, and optimizing the fuel mix through a better siting of thermal generation facilities.

He also emphasized that the sector development programme will give a massive boost to the related industries, including power engineering and electric equipment and building industries, with the energy sector becoming an engine of growth for the entire national economy. Mr. Chubais said that, in terms of its importance for the economic development of Russia, the Master Plan might be called GOELRO-2 Plan.

According to him, the Master Plan gives the investment community a clear indication that the state has a sound long-term policy for the electricity industry based on the sector reform being implemented. "The priority given to the development of the power grid will make it possible to take into account the interests of strategic investors when selecting sites for the construction of new thermal power plants. An understanding of the sector development prospects is vital for the investment community as a whole, as they determine location for new production facilities".