Please find below answers to the most frequent questions on the activity of JSC «Eastern Energy Company». You are welcome to ask your question by completing a special on-line form.
Who is the contract-holder for electric power export from Russia to China?
Which companies are the project partners of JSC «Eastern Energy Company»?
How will the electric power export to China increase? What targets are set for the project?
Why is the manifold increase of the electric power export to China in 2010 impossible?
What Far-Eastern generations produce electric power to be supplied to China?
What is the pricing policy for the electric power export to China?
Who receives the export revenues?
Who is the contract-holder for electric power export from Russia to China?
JSC «Eastern Energy Company» (100% subsidiary of JSC «INTER RAO UES») is the holder of the Sales and Purchase Contract at the first stage of the project for electric power export from Russia to China. JSC «Eastern Energy Company» is also a party to the Contract for electric power supply to China within frontier trade, concluded with the State Grid Corporation of China in February 2009.
Which companies are the project partners of JSC «Eastern Energy Company»?
In the course of the project, JSC «Eastern Energy Company» mainly interacts with the energy companies, established as a result of reforming RAO «UES of Russia». These are JSC «RusHydro», JSC «RAO Energy Systems of the East» and its subsidiaries (JSC «Far Eastern Generating Company», JSC «Far Eastern Energy Company» and others), JSC «Federal Grid Company of the Unified Energy System». Holding «Russian Coal» and JSC «Siberian Coal Energy Company» are also partners of JSC «Eastern Energy Company» as to construction of new generating facilities (thermal power stations).
How will the electric power export to China increase? What targets are set for the project?
The project target is to ensure the electric power supply to China at 60 billion kWh per year, starting with 2020. In 2011, the electric power export is planned to grow from 1-1.2 billion kWh to 3.6-4.5 billion kWh. Further, as far as new power generating and grid facilities are put into operation, total power supplies will increase to 22-23 billion kWh per year since 2016, and up to 60 billion kWh per year since 2020.
What capacities are planned to be commissioned in the course of the project for increase of the electric power export to China? What are the funding sources?
By 2020, JSC «Eastern Energy Company» plans to build a number of new power stations with the aggregate capacity of 10,800 MW, over 3,400 km of DC and AC transmission lines of ± 500 kV and higher. Construction of power generating and grid facilities will be performed using the project financing with participation of Russian and foreign investors.
Why does JSC «Eastern Energy Company» in its investment program put emphasis on coal generation as it is well-known that hydroelectric-power stations generate cheaper power?
Thermal power stations allow ensuring stable deliveries while hydroelectric power stations are subject to seasonal fluctuations. Besides, hydroelectric power projects are characterized by manifold higher construction costs and much longer construction cycles. Coal-fired power stations, foreseen by the investment program of JSC «Eastern Energy Company», will be erected close to coal deposits, thus, the transport distance will be minimal. Moreover, due to the new technologies used, the efficiency output at these stations will be much higher.
Why is the manifold increase of the electric power export to China in 2010 impossible?
The limited transmission capacity of the existing grid facilities (electric power is currently delivered through 110 kV line Blagovechensk- Heihe and 220 kV line Blagovechensk- Aygun) does not allow delivering more than 1-1.2 billion kWh. The increase of electric power supplies up to 3.6-4.5 billion kWh, planned for 2011, will be possible only upon construction of the 500 kW transmission line from the Amurskaya Substation to the state border (the project also provides for extension of the Amurskaya Substation itself).
What regions of the Russian Federation and the People’s Republic of China are involved in the project?
The basic region of the project for increase of electric power export to China is the Amur Region, which borders with Chinese province of Heilongjiang. Facilities, foreseen by the Investment Program of JSC «Eastern Energy Company», will be built in the Khabarovsk Territory, the Chita Region, and the Republic of Buryatia. In the course of the project development, population and enterprises of Heilongjiang, Liaoning provinces and the district of Beijing, the capital of China, will become consumers of the power, generated in the Far East.
What Far-Eastern generations produce electric power to be supplied to China?
These are thermal and hydroelectric power stations, included in the United energy system of the East, mainly located in the territory of the Amur Region.
What is the pricing policy for the electric power export to China?
As regards the pricing policy, the parties are guided solely by the market principles. The cost of 1 kWh, fixed by the current contract, conforms to the level, existing on the markets of Russia and China, and satisfies the interests of the both parties.
Who receives the export revenues?
Revenues from the electric power export to China are divided between the export participants: JSC «Far Eastern Energy Company» (sole purchaser and supplier), electric power suppliers (JSC «Far Eastern Generating Company», JSC «RusHydro»), JSC «Federal Grid Company of the Unified Energy System» (power grids), JSC «Eastern Energy Company» (the project operator for electric power export to China).
