Докладчик
Тезисы доклада
REFORMS OF RUSSIA’S POWER INDUSTRY:
PROBLEMS, CHALLENGES, SOLUTIONS
V.O. Golovshchikov, V.A. Stennikov
ESI SB RAS, Irkutsk, Russia
The restructuring process in the electric power industry was analyzed to assess the
outcomes, current status and emerging problems. These issues are widely discussed by the scientific
community [1-4], and constructive decisions are made. However, these decisions are not brought
into practical implementation. It is noted that despite some positive achievements, most of the set
objectives have not been accomplished.
1. The efficient competitive markets for electricity and heat have not been created.
2. There is still practice of cross-subsidization (between groups of energy consumers and
territories).
3. The balance of interests of the energy market participants is not provided. The main advantages
were given to energy companies.
4. Tariffs for end consumers continue to grow at a pace exceeding the inflation rate.
5. The measures taken to reduce the costs of generating, grid and energy retail companies do not
work.
6. The electric power industry develops due to an increase in tariffs for consumers; market
mechanisms are not involved.
7. There is a lack of coordination and effective management in most of the national energy sector.
Energy sector is gradually losing infrastructure functions.
8. The Ministry of Energy of the Russian Federation has not become a full-fledged center of
competencies (the development of the main concepts) and management of the electric power
industry.
9. The aging of the main energy facilities continues, although the mechanisms of power supply
agreement, regulatory asset base (RAB); the corresponding tariff policy; etc. were introduced.
The existing shortcomings are a result of the fact that the decisions made were not thought
out, western models were taken as the basis for the reform, however, the specific character of
Russia’s electric power industry was not taken into account. Consequently, the expected results
were not achieved.
Further effective development of the energy sector requires the formulation of targets and
the strategic vision of future of the electric power industry. In this regard, the concept and policy
documents should be developed, and effective mechanisms for their implementation should be
proposed to successfully transform the electric power industry in accordance with the evolution of
the technological structure.
The priority measures to overcome negative processes and gradually take the electric power
industry to a new innovative path of development, include the following:
1. Ensure access of all power plants to the wholesale and retail energy and capacity markets. 2.
Enlarge territorial (distribution) power grid companies based on the most effective of them.
3. Provide power grid companies with the opportunity to sell energy.
4. Consolidate retail markets for electricity and heat into the “Single Market” to benefit all
participants in this market [5].
5. Transform the wholesale electricity and capacity market into a balancing market.
6. Establish differential tariffs in the electricity network sector.
7. Ensure unconditional financial responsibility for the quality and reliability of energy supply.
8. Implement the latest trends in the electric power industry, i.e. “digital technologies”, “smart
grids”, “artificial intelligence”, etc.
9. Implement pilot projects with an analysis of the results and their further development.
References
- Kutovoi G.P. On the need to continue reforms in the electric power industry // Energy Expert.
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No. 3. P. 18-25.
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Golovshchikov V.O. Problems of restructuring Russia’s electric power industry and their
effect on market relations // Energy Market. 2016. No.5. P. 30-35. - Kozhukhovsky I.S. Key results of the reform of the electric power industry and new
challenges // Regionalnaya Energetika i Energosberezhenie (Regional Energy and Energy
Conservation). 2018. No 4. P. 8-15. - Kuzmin V.V. About approaches to the development of the Russian electricity market //
Energetik (Power Engineer). 2019. No. 6. P. 9-14. - Stennikov V.A., Golovshchikov V.O. The retail market for electricity and heat - problems and
development prospects // Energetik (Power Engineer). 2019. No. 6. P. 3-10.
