Russia to Draft Long-Term Power Capacity Market Model by March

Russia will prepare a model for the long-term electricity capacity market, allowing power generation companies to recoup the costs of constructing plants, by March, Deputy Energy Minister Vyacheslav Sinyugin said.

“We’re in intensive discussions and the government-set deadline is March,” Sinyugin told a forum in Moscow today, which was organized by Troika Dialog.

The ministry is also considering a revision to a federal plan for new capacity and analyzing demand trends in the regions, he said. “So far, our stance is for generators to meet their commitments” on building new capacity, he said.

The Russian government may also help fund construction of the Boguchansk hydropower plant, which OAO RusHydro and United Co. Rusal are building, as the aluminum company faces $16.3 billion in debts.

“Such opinions have been voiced” in the government, Sinyugin said.

The building of an adjacent aluminum smelter in Boguchansk, also to be run by RusHydro and Rusal, may be delayed after the price for the metal dropped to a five-year low last month, a RusHydro official said, declining to be named in line with company policy.

To contact the reporter on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net.

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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