Putin calls for higher share of nuclear, coal, hydro generation

Moscow (Platts)--26Apr2007

Russia's president Vladimir Putin Thursday said Russia needs to increase
its power generation by two thirds by 2020 and raise the share of nuclear,
coal and hydropower generation.

In his annual state-of-the-nation address, Putin said state and private
companies were to invest to Rb12 trillion ($467 billion) to reach the target.

Putin prioritized the development of the electricity sector among the
country's other large-scale projects, saying the program would involve the
construction of new and upgrade of existing power plants and expansion of
grids. He also called for a focus on non-gas generation.

"Significant changes in the structure of electricity generation are
needed through increasing the share of atomic, coal and hydropower
generation," Putin told the Federal Assembly, Russia's dual-house Parliament.

During the whole Soviet period, 30 nuclear power units were commissioned,
Putin said, while over the next 12 years, 26 more of advanced technology would
be launched.

Putin called for the creation of a special corporation, which would unite
atomic energy organizations and work on domestic and external markets, and
secure the state defense interests. A special law will need to be passed, he
added.

He also said that with vast hydro resources, only 20% of Russia's
hydrogeneration potential is being used.

"In other developed countries, it is 70-80%," he added.

Putin called for the construction of new large hydropower plants,
especially in Siberia and Russia's Far East.

Russia, with its significant coal reserves, should also focus on coal
power generation by advanced technology, he said.