Russian Power Generation Industry

By:
Rahul Kumar
Khusen Dyshekov
Sourabh Mehto
An in depth and accurate project for SFEL on the Russian
Power Generation Industry.
INTERNATIONAL CONSULTANCY PROJECT

International Consultancy Project
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Table of Contents
Executive Summary....................................................................................................................4
Introduction ...............................................................................................................................5
Sectors....................................................................................................................................5
Coal and mines .................................................................................................................5
Electric power...................................................................................................................5
Natural Gas.......................................................................................................................5
Nuclear Energy..................................................................................................................6
Oil......................................................................................................................................6
The demand for electricity in Russia..........................................................................................7
Structure of electricity consumption.........................................................................................8
The main methods of electricity production in Russia ..........................................................9
Main Power generation methods.....................................................................................9
Nuclear power ..................................................................................................................9
The thermal power plants ..............................................................................................11
Hydropower....................................................................................................................11
Forecasts of production and consumption..............................................................................12
Major Players in Russian Power Generation Industry.............................................................15
Main Competitors ................................................................................................................15
DEMANDS OF HEAVY FORGING IN RUSSIA..............................................................................23
RAO UES (Russian Open Stock Company Unified Energy System),......................................23
Electricity supply in Russia.......................................................................................................24
DEMANDS IN RUSSIAN NUCLEAR SECTOR: ..........................................................................25
Present nuclear capacity..........................................................................................................26
Life extension, upgrades and completing construction.......................................................26
Building new nuclear capacity..............................................................................................26
DEMANDS IN RUSSIAN HYDRO SECTOR:..............................................................................28
Heavy Manufacturing of Power Plants ................................................................................29
Major Power Reactors under Construction, Planned and officially proposed...............30

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CHALLENGES FOR FORGE MASTERS ........................................................................................33
Opportunities...........................................................................................................................36
STRATEGIES/RECOMMENDATIONS FOR FORGEMASTERS ......................................................37

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Executive Summary
The report has been prepared on behalf of Sheffield Forgermasters Engineering Limited to
give an overview about the Russian Power Generation Industry, it emphasize on the
methods of power generation, the ongoing and proposed power project in Russia, the main
sources for generating power in Russia. The project also includes the analysis of current
power demands and the past trend in Russia.
The main requirement of this research project, thus, is to provide a strategic and dynamic
approach, to follow and accomplish the plan that would strengthen the present business of
Forge Master and this would help them to enter in new markets like Russia.
The report will include
Market Screening
Demand and past trends
Strategic direction
Recommendation for SFEL
The study also provides a brief profile of the major players in the power generation strategy
and their market share, the main products and services provided by them.
The project will also help to formulate a strategy for Sheffield Forgemasters to enter in
Russian Power Industry with a sound knowledge of its competitors and potential business
customers and how Sheffield Forgemasters can have a competitive advantage over its
competitors.

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Introduction
Power Generation is one of the key strategic industries in Russia and it consists of many
world leading companies in power generation. There are different regions and sectors in
which they operate.
Sectors
Coal and mines
In 2000s large private operators appeared in the coal market – mainly as the result
of M&A activities with steel-makers, needed coking coal own sources. Currently 20
leaders provide 91% of Russia’s coal production – with SUEK providing 38% in
thermal coal production and Evraz Group 31% in coking coal. Since the early 2000s
Russia benefits the status of coal net-exporter – buying 18.8 mt of Kazakh coal Russia
exported 98 mt of coal in 2009. Russia became the world’s # 3 coal exporter (after
Australia and Indonesia) – with approximately 11% in global coal trade.
Prior to 2009 Russia’s coal export was oriented mainly EU – with 73.4% share. But
following market drop in Europe the western route of Russian coal export became
less and less attractive. Meanwhile the demand in APAC continued to grow – even in
crisis period; 2009 became the time when several Russian coal tycoons began to shift
export interests from EU to Asia-Pacific
Electric power
Russia is the fourth largest generator of electricity, after the USA, China, and Japan.
Roughly 63% of Russia's electricity is generated by thermal plants, 21% by
hydropower and 16% comes from nuclear reactors. Russia exports significant
quantities of electricity to the countries of the former Soviet Union, as well as to
China, Poland, Turkey and Finland.
Natural Gas
Russia has the world's largest proven natural gas reserves - though these are largely
undeveloped - and significant oil reserves. The gas sector in Russia is dominated by
state-owned company Gazprom. Production of natural gas increased by 1.13% in

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2005 to 640.634bn cubic metres, while exports increased by 8.04% to 152.478bn
cubic metres.
The recent gas dispute with Ukraine has caused concern that Russia is trying to use
its role as a major gas exporter as a means of securing influence or pursuing its own
geopolitical goals in neighbouring countries.
Nuclear Energy
After a 20-year lull following the Chernobyl disaster, Russia announced ambitious
plans for new nuclear facilities. Russia is set to increase the proportion of its energy
that is nuclear-generated from the current 16% to 25% by 2030 and build at least 40
new reactors. Costs are estimated at $60bn.
Russia currently has 31 reactors at 10 plants and is building three more at home and
another five abroad, including the controversial site at Bushehr in Iran.
Oil
Oil production grew by 2.7% in 2005 to 9.44m barrels per day (bpd). During the same
period, oil majors increased refining by over 10 per cent to above 4m bpd. Russia
exports around 5m bpd of crude oil and 100m tonnes of refined products.
Power Generation Companies in Russia
1 Arktikugol Coal 16 Rosenergoatom Nuclear
2 Coal Company Zarechnaya Coal 17 Atomenergoprom Nuclear
3 Mechel Coal 18 Bashkirenergo Power
4 Raspadskaya Coal 19 Enel OGK-5 Power
5 Siberian Coal Energy Company Coal 20 Inter RAO Power
6 SIBPLAZ Coal 21 Kuzbassenergo Power
7 FGC UES Elect. Tras. 22 OGK-1 Power
8 Novosibirskenergo Electricity 23 OGK-2 Power
9 RAO UES Electricity 24 OGK-4 Power
10 Hydroproject Hydro 25 OGK-6 Power
11 Irkutskenergo Hydro 26 TGC-1 Power
12 Lenhydroproject Hydro 27 WGC-3 Power
13 RusHydro Hydro 28 Astrakhanenergo Thermal
14 Natural Gas 29 Mosenergo Thermal
15 Lukoil Natural Gas 30 Rosatom
Source: Creative Commons

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The above companies operate in different regions and some of them are subsidiaries of
major players.
After being liberalized from state regulation, the private players became more active and
competitive in power generation.
The demand for electricity in Russia
Growth in electricity demand in 2011 was on average 1.5%. In the month of August the
demand increased by 1.8%, but in the last quarter was marked by the decline in
consumption. In early November the demand for electricity in Russia grew by only 1.5% over
the same period last year, despite the colder autumn. Thus, the country first set on a
downward path of consumption in the industry in October. The reason lies in the
deterioration of the situation on the world metal market: because of lower prices
steelmakers cut production. The industry in fact indicated a drop in demand for energy: this
year's first week of November was much colder than last year.
The national average temperature was 5.8 degrees lower than in the European part, in Ural
- 8.2 degrees and in Siberia - 3.2 degrees. Standard cooling by 1 degree gives the increase in
demand of 1.1% due to housing patterns, the analyst said, "VTB Capital" Michael
Rasstrigin. When you save a proportion of overall demand in all sectors year to year would
grow by at least 6%. The calculations are rather relative, warns Mr. Rasstrigin, but reducing
consumption in the industry is clear - industrialists gleaning about 4.4% of energy.
Drop in consumption in the industry - the continuation of the trends emerged in October,
when the temperature was at last year's level. In the previous month, the demand for the
whole country fell by 0.9%, says Deutsche Bank analyst Dmitry Bulgakov. The main reason -
reducing demand, especially from steel companies, says Mr. Bulgakov. Unlike oil and gas
cluster, where capacity utilization is not strongly dependent on world prices for
hydrocarbons, metallurgical sector is more susceptible to market conditions, which affect
the volume of production. Reduced load capacity of steel has a significant impact on energy
consumption in Russia.
Against this background, in early November, there was a sizeable drop in electricity prices in
the free market: the first price drop zone for the week of 4-10 November was 3.2%, in
Siberia - 15.2%. The fall in prices due to the planned load thermal power plants, reducing

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the cost of generating one kWh of energy, according to all interviewed experts.
Electricity consumption in 2005 amounted to 935 billion kW / h. There was an upward trend
in the demand pattern for electricity during the period. Electricity consumption in 2009 in
Russia as a whole amounted to 964.4 billion kW • h, that is 4.6% less than the amount of
electricity consumed in 2008 in consequence of the economic crisis. But next year, and
demand out to pre-crisis period. Electricity production in Russia in 2010 amounted to 1038.0
billion kw / h, which is 4,4% higher than in 2009. Powerhouse UES of Russia worked out
1004.3 billion kw/h (4.6% more than in 2009). Consumption amounted to 1021 billion kW/h.
The main burden for the electricity demand in the UES of Russia in 2010 brought thermal
power plants (CHP) production which amounted to 620.8 billion kw / h, which is 7,6% more
than in 2009. The development of hydropower in 2010 decreased by 4.8% compared with
2009 and amounted to 158.03 billion kilowatt / hours NPP in 2010 produced 169.97 billion
kW / h, which is 4.2% more than electricity generated in 2009. Power plant industry in 2010
developed a 55.6 billion kw / h (2.2% more than in 2009).
Structure of electricity consumption
Industry - the main consumer of electricity in Russia - will continue to grow in 011.However,
in 2011is expected quite a sizeable reduction in the rate of growth of industrial production -
up to 3.5-3.8% compared with a jump of 8.3% last year, largely due to the production of
active restoration of enterprises engaged in the production minerals, and
manufacturing production facilities.

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The main methods of electricity production in Russia
Today, to supply the growing demand for electricity Government of Russia has developed a
Master Plan for location of energy facilities, according to which by 2020 it is planned to
commission a total of 32.3 GW of installed nuclear capacity, 25.9 GW of installed capacity of
hydropower, 53.9 GW - TES coal-fired and 74 GW - TES on gas. Taken together, the share of
thermal power plants accounts for 68.7% of all input installed capacity.
Main Power generation methods
Nuclear power
Today in Russia there operate 10 nuclear power plants (a total of 32 power installed
capacity of 24.2 GW), which generate about 16% of all electricity produced. In the European
part of Russia, the share of nuclear power reaches 30%, and the North West - 37%.
Organizationally, all nuclear power plants are branches of JSC "Concern" Rosenergoatom
"(part controlled by the State Corporation" Rosatom "OAO" Atomenergoprom "), which is
23%
22%
55%
Services and households
Other
(sales, transport, agricult
ure)
68
11
21
Termal
Nuclear
Hydro

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the second in Europe in terms of energy by nuclear power generation, second only to the
French EDF, and the first volume of generation within the country. Russian nuclear power
plants are making a significant contribution to the fight against global warming. Through
their work annually there emissions into the atmosphere 210 million tons of carbon dioxide
are prevented. Overall, the global nuclear industry prevents 3.4 billion tons of CO2: 900
million tons in the U.S., 1.2 billion tons - in Europe, 440 million tons - in Japan, 90 million
tons - in China.
The priority is the safety of nuclear power plants. Since 2004, the Russian nuclear power
plants have been recorded no serious breach of security, classified according to the
international INES scale greater than zero (minimum) level. Steadily declining number of
unplanned outages of nuclear power plant shutdowns and unscheduled network of reactors
– by this indicator Rosenergoatom is the second largest in the world, surpassing the United
States, Britain and France. Radiation background in the vicinity of nuclear power does not
exceed the established standards and complies with the natural values typical for the
respective areas.
An important task in the field of operation of Russian nuclear power plants is to increase the
capacity factor (load factor) at already working stations. To solve the first problem
"Concern" Rosenergoatom " has developed a special program to improve load factor,
calculated up to 2015. As a result, its performance will be obtained an effect equivalent to
commissioning of four new nuclear power units (equivalent to 4.5 GW of installed capacity).
In 2006 -2008 years due to the fact that the load factor rose from 76% to 80.9%, there was
achieved substaintial growth in output.
At present, Russia is a large-scale construction site of new nuclear power plants. Last year,
construction began on the first blocks Novovoronezh-2 and Leningrad NPP-2. In July 2008,
there started excavation under the second block of Novovoronezh-2. In the stage of
completion are still three units: the second in Rostov (Volgodonsk) NPP, the fourth - the
Beloyarsk NPP and the fourth - at the Kalinin plant. Abroad by building nuclear power plants
"Kudankulam" (India), "Busher" (Iran) and the "Belene" (Bulgaria).
In the next ten years Russia plans to build 30-32 units, said the head of the Russian
government in the direct line of communication with citizens, "Conversation with Vladimir
Putin. Continued," says RBC. "If during the Soviet era all over the decade there were

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built 35-38 large power units, in the next ten years we plan 30-32. Tremendous amount," –
said Vladimir Putin. "We have big plans to develop nuclear energy," - said the prime
minister. According to him, this means the company "Rosatom" is additionally supported
by its government.
The thermal power plants
Approx 68% of all electricity is produced in the Russian thermal power plants. This is the
primary power in Russia. Among them the main role is played by the powerful (more than 2
million kW) power plant - the state district power plant to ensure the needs of the economic
region, working in power systems. Most cities in Russia are supplied just TPP. Often used in
urban CHP - combined heat and power, producing not only electricity but also heat in the
form of hot water. Such a system is quite impractical because unlike electric cable reliability
of heat is very low at large distances, the efficiency of district heating strongly in the
transmission is also reduced. It is estimated that the extent of heating more than 20 km (a
typical situation for most cities) electric boiler installation in separately standing house is
economically advantageous. Accommodation of thermal power plants has a major impact
and fuel consumption factors. The most powerful thermal power plants are located in areas
of fuel production. Thermal power stations using native species of fuels (peat, shale, low-
calorie coal) are geared to the consumer and at the same time are a source of fuel
resources.
Large thermal power plants are coal power plants in Kansk-Achinsk, Berezovskaya GRES-1
and GRES-2. Surgut GRES-2, Urengoy SDP (using gas).
Hydropower
Modern hydroelectric allows up to 7 million kilowatts of energy, two higher than that
currently in thermal and nuclear power plants, but the location of power plants in the
European part of Russia is difficult because of high cost of land and the inability to reach
large areas in the region. The most powerful hydroelectric power station was built in Siberia,
where hydropower is developed most effectively.

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HPS can be divided into two main groups: large hydropower plants on lowland rivers and
hydroelectric power stations on mountain rivers. In our country most of the hydroelectric
power stations were constructed on the rivers of the plains. The plains reservoirs are usually
large in size and consequently change environmental conditions over large
areas Deteriorating sanitary condition of water bodies.
The construction of pumped storage power stations – PSP – is very promising. Their action is
based on the cyclical movement of the same volume of water between two pools: the top
and bottom. At night, when electricity demand is low, water is pumped from the lower
reservoir in the upper basin, while consuming excess energy produced by plants at night .In
the afternoon, when electricity demand increases rapidly, the water is discharged from the
upper basin down through turbines, generating that energy. This is advantageous because
to stop TPP at night is impossible. Thus, the PSP can solve the problems of peak loads. In
Russia, especially in the European part of the acute problem of maneuvering a power plant,
including the PSP (as well as the University, NTU). Zagorsk PSPP constructed (1, 2 million
kW), based Central PSP (2.6 million kW).
An important drawback of HPS is the seasonality of their work, so it is inconvenient for the
industry. The main problem of the whole system and the electricity industry - it is wear and
tear. Of particular concern inspires Russian state hydro, 20.9% of the power which worked
more than 50 let.Otrabotali a standard period of 53% of the turbines, generators, 52.5%,
40% of the transformers. The average wear and tear on hydropower exceeds 40%, and in
some cases - 70%. Most of the equipment, spent their regulatory useful life, the Volga-Kama
cascade of hydro-power stations and the North Caucasus.
Alternative methods of producing electricity.
At the moment, the share of alternative sources is about 0.1% of the total output of the
generating systems.
Forecasts of production and consumption
Russia's economic growth will contribute to the restoration of power in Russia, on the one
hand stimulating the production of electricity and heat, and, consequently, earnings of
energy companies, but on the other hand, due to unavoidable costs increases, increasing
the gap between effective and ineffective-market participants.

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(APBE) suggest that by 2015 the need for new capacities will be 28 GW by 2020 to 76 GW,
and this despite the fact that the growth rate of electricity consumption have been
significantly adjusted, from 4.1% annual growth inherent in the investment program of RAO
UES to 2-3% in the adjusted version of the 2010 general scheme. The total amount of
required installed capacity is 234 GW in 2015 and 275 GW in 2020, it is assumed that in the
next five years against the backdrop of the dismantling of obsolete equipment capacity of
existing power plants will decrease by 5 GW to 206 GW in 2020 - 12 GW to 199 GW. The
five-year investment program aimed at the needs of advanced input power capacity: for
example, for the period 2010-2015 expected to be operational 41.3 GW of new capacity,
and in 2020 - 79.9 GW
According to the Government's Energy Strategy of Russia up to 2030, electricity production
in Russia in 2030 will be about 1,8-2,21 trillion kW • h / year (2 times more than in
2008). Electricity generation plant will be 356-437 billion kW • h (2.7-fold increase), from
renewable energy sources (RES) will be 319-422 billion kW • h (an increase of 2.52 times),
CHP - 478-505 billion kW • h (up to 31%). In the structure of electricity generation by 2030
nuclear power plant will be 19.8% (15.7% in 2008) of renewable energy - 19.1% (16.1% in
2008), HPP - 28.1 % (37.1% in 2008).
Installed capacity by 2030 will grow almost 2 times and will be 355-445 GW nuclear power
plant - 52-62 gigawatts (up to 3 times), based on renewable energy sources (hydro, solar,
tidal and wind power) - 91-129 GW (an increase of 2.7 times), CHP - 106-112 GW (up
31%). The volume of investments in power until 2030 will be 572-888 billion dollars in 2010
prices.

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Key macroeconomic conditions In line with the expectations of the Ministry of
Economic Development, GDP growth in Russia in 2011, were 4.2% vs. 2.5% in 2010, and the
growth rate of industrial production - 3.9% vs. 8.3% expected in 2010. One of the main
factors contributing to the restoration of the Russian economy, should be rising oil prices,
the official government forecast on which the next three years is in the range of $ 65-70 per
barrel. However, based on futures on crude oil Brent, quote, "black gold", taking into
account, the accumulated financial system liquidity, will not fall below $ 90, on the one
hand stimulating the growth of Russian economy, on the other - helping to disperse the
global inflation, particularly on energy and Commodities. At the same time provides for
repair 57% of all existing generation capacity.
For a more economical use of building power plants in Russia they created the Unified
Energy System (UES), which includes more than 700 large power plants, which are
concentrated in 84% of the country's generating capacity. United Energy Systems (UES) of
the Northwest, Center, Volga, Southern, Northern Caucasus, the Urals, they are in the EEC
of the European part of Russia are established and operated. All power systems are
interconnected with high-voltage connections.
Advantages of the system are in alignment EEC daily schedules of electricity consumption,
including through its successive flowing between time zones, improving the economic
performance of power plants, creating conditions for the complete electrification of the
area and the entire economy.
Russia needs to expedite development of the power: increasing the volume of electricity
generated. Increasing volumes of new power plants and increase in capacity of existing
power plants will occur, in particular, by increasing the unit capacity and efficiency, energy-
producing units. In Russia today there are more than 80 power plants with capacity of 1
million kilowatts or more, which is 60% power capacity of the country.

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Major Players in Russian Power Generation Industry
Rosatom Nuclear Energy State Corporation is a State Holding Corporation. It is also the
Regulatory body of the Russian Nuclear complex. In November 2007 the company was
transformed into the state corporation from Federal Agency for Atomic Energy.
Main Competitors
OJSC Power Machines
OJSC Power Machines is the leading Russian producer and supplier of end-to-end products
and solutions for the power-plant industry, including engineering, production, supply,
assembly, service and equipment upgrades for thermal, nuclear, hydraulic and gas-turbine
power plants. It is the 4th
largest company in the world by volume of installed equipments.
Operate in - 57 Countries
Combined Capacity - 300,000 MW
Equipment Produced- 2700 Steam Turbines
2500 Turbo- Power Generators
700 Hydraulic turbines
600 Hydro power generators
Source: Power Machines, 2011
Nowadays Power Machines carries out projects in Russia and CIS, Eastern Europe countries,
India, Vietnam, China, South and Latin America countries, the Middle East and Africa
countries, etc.
The Products/Services
Steam turbines
Alternating current
electric generators
Service of TPP, NPP, HPP
operating Equipment
Gas turbines Electric motors
Service at complete
equipment supplies
Turbo generators
Alternating current
electric drive and
complete devices Engineering

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Hydraulic generators
Direct current electric
device and complete
devices
Steam and hydraulic
turbines services
Excitation system and starting
devices
Traction electric
device Gas Turbines services
Hydraulic turbines Generator services
Blades for steam and gas turbines
Excitation system
services
New developments
The Electro-technical Concern RUSELPROM is one of the largest national manufacturers of
generators, hydro-generators and electric motors for a variety of industries; it is a leading
scientific and engineering centre for the country’s electrical engineering.
The Russian electro-technical Concern RUSELPROM is one of the leaders of the Russian
electrical engineering.
Market situation
The RUSELPROM Concern products take:
Up to 35 % of the Russian market for generators and heavy electrical machines (from
1000 kW to 32.5 MW);
Up to 50 % of the market for all-purpose asynchronous motors.
The RUSELPROM Concern is the only developer and manufacturer of a hybrid drive
in the former Soviet Union.
The RUSELPROM Concern is the largest supplier of electrical machines in Russia, the
second largest (after OJSC Power Machines) manufacturer and supplier of electrical
equipment for all branches of industry.

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Products
Hydro-generators
Electric Motors
Hybrid Drive
Electromechanical motors
Specifications
Standard and special synchronous and induction electric machines in an output
range from 30 up to 12'000 kW, synchronous diesel generators, hydroelectric
generators, turbo-generators in an output range from 1 000 up to 220'000 kW
Standard and special induction electric machines in an output range from 0,18 up to
315 kW
Standard and special synchronous and induction electric machines in an output
range from 30 up to 2'000 kW, synchronous generators in an output range from 125
up to 1'000 kW
Source : Ruselprom, 2011
Tyazhmash is one of the leading companies of heavy, power and transport engineering. JSC
TYAZHMASH supplies high-quality products for power engineering, ferrous and non-ferrous
metallurgy, civil engineering, chemistry and petroleum refining, agriculture, gold-and-
diamond mining, defense and the space.
50%50%
All purpose asynchronous
Ruselprom
Other
manufactures
35%
65%
Generators and heavy electrical
machines:
Ruselprom
Other
manufactures

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Products:
Equipment for mining, metallurgy and construction industry
Wet autogenous mills.
Wet semi-autogenous mills
Ball mill MSh 25,5х14,5.
Mill MS 3,3х12,5.
MSTs, MShTs, MShR Mills.
Hammer crushers.
Roll crushers.
Smoke exhausters
Belt conveyers: stationary and retractable.
Idlers for belt conveyers.
Equipment for coal-fired thermal power plants (TPPs)
Tangential hammer mills
Medium speed roller mills (Bowl mills)
Pulverizing fans
Ball-tube mills
Roller mills of TBM type
Flicker devices with cone valve
Separators
Hydraulic bayonet locks
Cyclones
Scraper feeders
Combined raw coal feeder
Screw feeders
Pulverized coal stationary blade feeders
Sliding gate
Steam panel dryer
Equipment for hydro power plants (HPPs)
Hydraulic turbines for medium and large hydraulic power plants
Radial hydraulic turbines for small HPPs
Ball locks
Sectional plain sliding gates and trashracks
Disk gates
Equipment for nuclear power plants (NPPs)

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Hydraulic shock absorbers
Vibration dampers
Other equipments
Equipment for industrial oil preparation
Tunnel shields
Screw pumps of MVN type
Overhead cranes
Special gearboxes
Protective devices of entries, transport doors and air ducts
Launching-docking module of «Energy-Buran» system
Radio-telescopes and support-rotating mechanisms (SRM) of radar complexes
A Tower of 70 m height
A Tower of 250 m height
Screw pumps of MVN type
Steam-turbine condenser
ELSIB”, already for more than 50 years, designs and produces
the high effective electric and technical equipment. For a half of century period of its
activity, “ELSIB” has equipped with the turbo- and hydro-generators more than 700 power
plants at the different regions of the planet. More than 60 thousand large electric machines
are being operated at all branches of industry of 52 countries of the world.
Products
Hydro-generators
Turbo-generators
oAir-cooled turbo-generators
oHydrogen-cooled turbo-generators
oLiquid-cooled turbo-generators
Asynchronous motors
oAsynchronous electric motors of general-duty and special-purpose
oExplosion-proof asynchronous electric motors
Frequency Converters
Services

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oRepair and modernization of hydro-generators
oRepair and modernization of the turbo-generators
oRepair and modernization of electric motors
Today the company has half-century experience in the area of designing and manufacturing
hydro-generators. The products manufactured are certified, technical solutions and “know-
how” are protected with patents. Our hydro-generator construction specialists have more
than 130 author's certificates and patents of the Russian Federation. NPO “ELSIB”-produced
hydro-generators with capacity of 25 to 300 Mw having revolution rates from 50 to 333 rpm
are successfully used for a long time at such HPSs of Russia as: Irkutsk, Bratsk, Saratov,
Nizhnekamsk, Cheboksary, Viluysk, Kolyma HPS – more than 30 stations in total.
Need from suppliers
For a manufacturing of the large electric machines, uses, at the large volumes, a wide range
of the materials and completing parts such as:
Ferrous metal rolling
Non-ferrous metal rolling
Electric insulating products
Chemicals
Rubber and technical products
Cables
Devices and apparatus of various intention, etc.
Rosenergomash is one of the leading Russian electro-mechanical concerns. It has its plants
in Ukraine and Russia. Rosenergomash is by right considered to be the most innovative
electrical engineering concern. Furthermore, the Concern’s innovative activity is not only
limited to design solutions but represents a comprehensive innovative approach to the
company’s managerial initiatives.
In particular, the Concern offers a brand new approach to cooperation for power
engineering and electric engineering enterprises.
Products

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Large-size electric machines
Mills
Motor-Barrels, conveyor
Excavators
Crushers
Asynchronous electric motors
Synchronous electric motors
Asynchronous electric motors conventional sizes 56-355
Three-phase asynchronous electric motors with squirrel-cage rotor
Explosion-proof electric motors
Electric Motors of special Purpose
Generators
Direct-current electric machines
Direct-current electric machines of general industrial and special use
Marine design electric machines
Electric machines for railroad transport
Crane-metallurgy electric motors
Mining direct current traction electric motors
Industrial electric equipment
Mining electric equipment
Normal resistors
The Concern plans to increase its sales by 3-5 times this year given the drastic market
growth rate (at 20 - 25% per year).
“Electrtotyazhmash” is the leading enterprise of Ukraine on development and production of
turbine and hydrogenerators, heavy electric DC machines for different branches of national
economy, set electrical equipment for diesel locomotives, electric locomotives, diesel trains,
heavy-weight dump trucks, trams, trolley-buses and equipment for diesel power plants.

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Capacity
The plant is strategically significant for Ukraine since more than 80% of capacities of
Ukrainian power stations are equipped with the turbo- and hydrogenerators bearing the
mark of the plant as well as those of Russia, Belorussia, Kazakstan, Lithuania and other
countries.The products with brand “Electrtotyazhmash” are successfully operated in over
than 40 countries of the world.
Products
The enterprise is in close contact with the customers of the equipment, systematically
analyze and summarize the experience of its operation. The plant renders technical support
to the customer's specialists who, if they wish, take part in stand testings of unique
machines. In order to provide maximum reliability all electric machines are subjected to
operation-by-operation tests, careful control at all stages of production.
Synchronous machines
oTurbogenerators
oHydrogenerators
DC big electrical machines
oDС electrical motors
oDC generators
Traction electric equipment
oTraction units
oElectrical motors
oTraction generators
oAuxiliary electrical machines
oElectrical Apparatus
Services
oTesting center
oNon-ferous and ferous metals

23 | P a g e
DEMANDS OF HEAVY FORGING IN RUSSIA
The Russian government began reforming the power generation industry. The main goal
was, and remains, to upgrade the aging and out-dated heating and electricity infrastructure.
Russia’s primary energy demand is projected to grow at 0.7 per cent per year over the
outlook period; buoyed mainly by increasing demand for oil and gas in the industry and
transport sectors.
The demand for heavy forgings is forecast to triple by
2020 to 70,000 tons, with worldwide supply capacity only able to fulfill 59,000 tons in that
period. A 2009 report by Frost & Sullivan highlighted the disparity between supply and
demand.
The main downside of an increase in nuclear projects concerned the availability of heavy
equipment and long lead times. The majority of equipment for new generation plants
currently comes from international suppliers and nuclear-related entities which are working
at full capacity.
RAO UES (Russian Open Stock Company Unified Energy System),
 The national utility company set a target to raise $118 billion in five years. To meet this goal,
it has to attract foreign investment. RAO UES closed its doors as a holding company in 2008,
with much of its power generation assets privatized. Russia now finds itself needing to
modernize a large portion of its power generation facilities and RAO UES hopes to attract
more than $100 billion investment in the industry in the next five years.

24 | P a g e
 They plan to increase capacity by 40.9 M watts in the coming four years. RAO UES estimates
it needs 100 gas and 67 steam turbines, 125 waste heat boilers and about 70 turbines for
coal-fired stations. It is quite likely that purchase orders for power generation equipment
may grow to tens of billions of dollars. According to industry sources, last year local
manufacturers produced only $2 billion worth of this equipment type, creating a promising
market for foreign vendors.
Electricity supply in Russia
Russia's electricity supply, formerly centrally controlled by RAO Unified Energy System (UES)
faces a number of acute constraints. Electricity production reached 1015 billion kWh in
2007, with 160 billion kWh (16%) coming from nuclear power, 487 TWh (48%) from gas, 170
TWh (17%) from coal and 179 TWh (18%) from hydro. In 2007 net export was 13 TWh and
final consumption was 701 TWh (after transmission losses of 105 and own use/ energy
sector use of 194 TWh). Nuclear capacity is about 10% of total 211 GWe.
 First, demand is rising strongly after more than a decade of stagnation.
 Secondly, some 50 GWe of generating plant more than a quarter of it in the
European part of Russia has come to the end of its design life.
 Thirdly, Gazprom has cut back on the very high level of natural gas supplies for
electricity generation because it can make about five times as much money by
exporting the gas to the west (27% of EU gas comes from Russia).
 Fourthly, it predicted a possible doubling of generation capacity from 225 GWe in
2008 to 355-445 GWe in 2030.
 Fifthly, new investment by 2030 of RUR 9800 billion in power plants and RUR 10,200
billion in transmission will be required.
UES' gas-fired plants burned about 60% of the gas marketed in Russia by Gazprom,
and it is aimed to halve this by 2020. Also, by 2020, the Western Siberian gas fields
will be so depleted that they supply only a tenth of current Russian output,
compared with nearly three quarters now. Also there are major regional grid
constraints so that a significant proportion of the capacity of some plants cannot be

25 | P a g e
used. Some non-nuclear generators have been privatised. Some TGK companies
(also supplying heat) are private, others such as TGK-3 are owned by Gazprom.
Source :http://www.world-nuclear.org
DEMANDS IN RUSSIAN NUCLEAR SECTOR:
Russia is moving steadily forward with plans for much expanded role of nuclear energy,
nearly doubling output by 2020. Efficiency of nuclear generation in Russia has increased
dramatically since the mid-1990s. Exports of nuclear goods and services are a major Russian
policy and economic objective. Russia is a world leader in fast neutron reactor technology.
In 2009 nuclear production was 163.3 billion kWh. In 2010 it was 170.1 billion kWh, 16.6% of
Russia's electricity. Nuclear electricity output has risen strongly due simply to better
performance of the nuclear plants, with capacity factors leaping from 56% to 76% 1998-
2003 and then on to 80.2% in 2009. Rosenergoatom aims for 90% capacity factor by 2015.
In gross terms, output is projected to grow from about 150 billion kWh in 2005 to 239 billion
kWh in 2016 (18.6% of total). Nuclear generating capacity is planned to grow some 50%
from 24.2 GWe gross (22.8 net) in 2010 to 35 GWe in 2016, and at least double to 51 GWe
by 2020. In 2006 Rosatom announced a target of nuclear providing 23% of electricity by
2020 and 25% by 2030.

26 | P a g e
Present nuclear capacity
Russia's nuclear plants, with 31 operating reactors totalling 21,743 MWe, comprise:
4 first generation VVER-440/230 or similar pressurised water reactors,
2 second generation VVER-440/213 pressurised water reactors,
11 third generation VVER-1000 pressurised water reactors with a full containment
structure, mostly V-320 types,
11 RBMK light water graphite reactors now unique to Russia. The four oldest of
these were commissioned in the 1970s at Kursk and Leningrad and are of some
concern to the Western world. A further Kursk unit is under construction.
4 small graphite-moderated BWR reactors in eastern Siberia, constructed in the
1970s for cogeneration (EGP-6 models on linked map).
One BN-600 fast-breeder reactor.
Life extension, upgrades and completing construction
Generally, Russian reactors are licensed for 30 years from first power. Late in 2000, plans
were announced for lifetime extensions of twelve first-generation reactors totalling 5.7
GWe, and the extension period predicted is now 15 to 25 years, requiring major investment
in refurbishing them. Generally the VVER-440 and RBMK units will get 15-year life
extensions and the nine VVER-1000 units 25 years. To 2010, 15-year extensions had been
achieved for Novovoronezh-3 & 4, Kursk-1 & 2, Kola-1 & 2 and Leningrad-1-3. Bilibino 1-4
have also been given 15-year licence extensions.
Building new nuclear capacity
In September 2006 Rosatom announced a target of nuclear providing 23% of electricity by
2020, thus commissioning two 1200 MWe plants per year from 2011 to 2014 and then
three per year until 2020 - some 31 GWe and giving some 44,000 MWe of nuclear capacity
then.

27 | P a g e
In April 2007 the government approved in principle a construction program to 2020 for
electricity-generating plants. It was designed to maximise the share of electricity from
nuclear, coal, and hydro, while reducing that from gas. This envisaged starting up one
nuclear power unit per year from 2009, two from 2012, three from 2015 and four from
2016. Present nuclear capacity would increase at least 2.3 times by 2020.
Source: World Nuclear Organization, 2011
Russia was focused on four elements
Serial construction of AES-2006 units, with increased service life to 60 years.
Fast breeder BN-800.
Small and medium reactors - KLT-40 and VBER-300.
High temperature reactors (HTR).

28 | P a g e
Heavy engineering and turbine generators
From 2011, the main reactor component supplier is OMZ's is doubling their
production of large forgings for manufacturing three to four pressure vessels per
year.
Turbine generators for the new plants are mainly from Power Machines subsidiary
LMZ, which has six orders for high-speed 3000 rpm turbines: four of 1200 MWe for
Novovoronezh and Leningrad, plus smaller ones for Kalinin and Beloyarsk.
The company plans also to offer 1200 MWe low-speed (1500 rpm) turbines from
2014, and is investing RUB 6 billion in a factory near St Petersburg to produce these.
Silmash is 26% owned by Siemens.
Alstom Atomenergomash is a joint venture between French turbine manufacturer
Alstom and Atomenergomash, an AEP subsidiary, which will produce low-speed
turbine generators based on Alstom's Arabelle design, sized from 1200 to 1700
MWe.
DEMANDS IN RUSSIAN HYDRO SECTOR:
Russia is greatly increasing its hydro-electric capacity
Russia is aiming to increase by 60% to 2020 and double it by 2030. Hydro OGK is planning to
commission 5 GWe by 2011. The 3GWe Boguchanskaya plant in Siberia is being developed
in collaboration with Rusal, for aluminium smelting. The aim is to have almost half of
Russia's electricity from nuclear and hydro by 2030.
Source: World Nuclear Organization, 2011
Russia now has 102 hydropower plants in operation, with a capacity of over 100 MW. The
total installed capacity of HPP turbo generator units in Russia today amounts to
approximately 45 million kW (5th place in the world), with an output in the order of 165
billion kWh/year (also 5th place) – while HPP account for no more than 21% of Russia’s total
electric power production.

29 | P a g e
At the same time, in terms of hydropower resources economic potential Russia takes
second place in the world (about 852 billion kWh, after China), but in terms of the degree of
their development
20% it is way behind virtually all the developed countries and even many developing
ones. The equipment of most Russian hydro-plants is over 40% obsolete and for some HPPs,
this figure reaches 70%, this being connected with the system-wide problem of the entire
hydropower industry of the last fifteen years.
Heavy Manufacturing of Power Plants
There is increase in demand of heavy forging in Russia due to following reason
 A critical issue for accelerating nuclear power plant construction is the availability of
heavy engineering plants to make the reactor components, especially for those units
of more than 1100 MWe.
 The supply challenge is not confined to the heavy forgings for reactor pressure
vessels, steam turbines and generators, but extends to other engineered
components.
 As with other generation technologies, supply constraints plus escalating steel and
energy prices flow on to plant costs.

30 | P a g e
 New investment in major forges and steelmaking lines is dependent on actual orders
rather than simply uncommitted plans or vague proposals.
 For very large generation 3+ reactors, production of the pressure vessel requires, or
is best undertaken by, forging presses of about 140-150 MN (14-15,000 tonnes)
capacity which accept hot steel ingots of 500-600 tonnes.
 Reactor vendors prefer large forgings to be integral, as single products, but it is
possible to use split forgings which are welded together. These welds then need
checking through the life of the plant. Also, whereas Generation II reactors might
require some 2000 tonnes of forgings, EPR and AP1000 units require about twice
the amount.
 A further issue emerging with manufacturing is metallurgy. Generation III+ plants
can use existing metal alloys, but Gen IV plants operating at higher temperatures
will require new materials, which will need a long lead time to develop. At 700ºC
degradation problems are much more severe than at today's operating
temperatures.
 Large nuclear power plants 1,000MWe+ usually has low-speed (1500 rpm) turbines,
such as Alstom's Arabelle, which are more reliable and efficient. The generators
however are heavier than those with the 3000 rpm turbine, and the price is also
higher.
Major Power Reactors under Construction, Planned and officially proposed
Plant Reactor Type MWe Status, Start Construction
Commercial
operation
Vilyuchinsk
FNPP
KLT-40S 40 x 2 Const 5/09 2014
Beloyarsk 4 BN-800 FBR 880 Const 2014
Novovoronezh
II -1
VVER 1200/ V-392M 1200 Const 6/08 2012
Leningrad II-1 VVER 1200/ V-491 1200 Const 10/08 10/2013
Novovoronezh
II -2
VVER 1200/ V-392M 1200 Const 7/09 2016

31 | P a g e
Commercial
operation
Rostov 3 VVER 1000/ V-320 1100 Const 1983, resumed 9/09 2014
Leningrad II -2 VVER 1200/ V-491 1200 Const 4/10 2016
Rostov 4 VVER 1000/ V-320 1100 Const 1983, first new concrete 6/10 2016
Subtotal of 9 under construction 7960 gross, 7550 net
Baltic 1
(Kaliningrad)
VVER 1200 1200 Planned, 2011 mid 2016
Seversk 1 VVER 1200 1200 Planned, 2013 2020
Leningrad II -3 VVER 1200 1200 Planned, 2011 2016?
Nizhniy
Novgorod 1
VVER 1200 1200 Planned, 2012 2019
Seversk 2 VVER 1200 1200 Planned, 2014 2025
Tver 1 VVER 1200 1200 Planned, 2012 2017
Nizhniy
Novgorod 2
VVER 1200 1200 Planned, 2013 2021
Tver 2 VVER 1200 1200 Planned, 2013 2017
Baltic 2
(Kaliningrad)
VVER 1200 1200 Planned, 2014 2018
Leningrad II -4 VVER 1200 1200 Planned, 2014 2019
Tsentral 1 VVER-1200 1200 Planned, 2013 2018
Tsentral 2 VVER-1200 1200 Planned, 2014 2019
Kursk II -1 VVER-1200 1200 Planned 2020
Kursk II -2 VVER-1200 1200 Planned 2023
Kola II - 1 VVER-1200 (was VK-300 or VBER-300) 1200 Planned, 2015 2020
Beloyarsk 5 BREST 300 Planned, 2016 2020
Dimitrovgrad SVBR-100 100 Planned, 2017 2020
subtotal of 17 VVER 1200 19,600 gross, approx 17,8600 net
dates very tentative:
Zheleznogorsk
MCC
VBER-300 300 Proposed 2015
Zheleznogorsk
MCC
VBER-300 300 Proposed 2016
Kursk II - 3 VVER 1200 1200 Proposed 2018

32 | P a g e
Commercial
operation
Kursk II - 4 VVER 1200 1200 Proposed 2019
Smolensk II – 1 VVER 1200 1200 Proposed 2017
South Urals 1 VVER 1200 or BN-1200 1200 Proposed, 2015 2021
Novovoronezh
II -3
VVER 1200 1200 Proposed 2017 ?
South Urals 2 VVER 1200 or BN-1200 1200 Proposed, 2015 2025
Kola II - 2 VK-300 or VBER 300 ? 300 Proposed 2018
Novovoronezh
II -4
VVER 1200 1200 Proposed 2019 ?
Tver 3 VVER 1200 1200 Proposed 2019
South Urals 3 VVER 1200 or BN-1200 1200 Proposed 2030
Kola II - 3 VK-300 or VBER 300 300 Proposed 2019
Primorsk 1 VK-300 or VBER 300 300 Proposed 2019
Nizhegorod 3 VVER 1200 1200 Proposed 2019
Nizhegorod 4 VVER 1200 1200 Proposed 2020
Tsentral 3 VVER 1200 1200 Proposed 2019 ?
Tsentral 4 VVER 1200 1200 Proposed 2020 ?
South Ural 4? VVER 1200 1200 Proposed 2020
Tver 4 VVER 1200 1200 Proposed 2020
Kola II - 4 VK-300 or VBER 300 300 Proposed 2020
Primorsk 2 VK-300 or VBER 300 300 Proposed 2020
Pevek KLT-40S 40x2 Proposed 2020
Beloyarsk 6 BN-1200 1200 Proposed (approved) 2024?
Subtotal of 27 units 25,000 approx
Source: World Nuclear Organization
The growing demand in all energy sectors in Russia requires heavy engineering involves
forging to supply main components for power plants.

33 | P a g e
CHALLENGES FOR FORGE MASTERS
Sheffield Forge Master has to face many challenges in Russia because of their main
competitor’s operational duties and performance. By knowing all factors Sheffield Forge
Masters may achieve great success.
Russia's main reactor component supplier is OMZ Izhorskiye Zavody facility at Izhora which
is doubling the production of large forgings so as to be able to manufacture three or four
pressure vessels per year from 2011. This represents a RUR 12 billion ($430 million)
investment. OMZ is expected to produce the forgings for all new domestic AES-2006 model
VVER-1200 nuclear reactors (four per year from 2016), plus exports.
At present Izhora can produce the heavy forgings required for Russia's VVER-1000 reactors
at the rate of two per year and it is manufacturing components for the first of two Leningrad
II VVER-1200 units and for two at Novovoronezh II, as well as Belene and Tianwan VVER-
1000s. These forgings include reactor pressure vessels, steam generator shells, reactor
internals, and heavy piping. It shipped steam generator shells to ZiO-Podolsk for finishing.
Source: OMZ, 2011
In 2008 the company was rebuilding its 12,000 tonne hydraulic press, claimed to be the
largest in Europe, and a second stage of work will increase that capacity to 15,000 tonnes.

34 | P a g e
In mid-2009 Izhora commissioned a furnace complex enabling production of 600-tonne
ingots and 5.5 metre diameter forging shells for nuclear reactors.
This was announced as the first stage of its expansion to produce four sets of nuclear
reactor components per year. The 600-tonne ingot capacity will also enable production of
large rotors for low-speed turbines. Izhora is keen to start manufacturing steam generators
for large nuclear plants.
OMZ - Uralmash-Izhora Group itself is the largest heavy industry company in Russia, and
has a wide shareholding. It specializes in engineering, production, sales and maintenance of
equipment and machines for the nuclear power, oil and gas, and mining industries, and also
in the production of special steels and equipment for other industries.
OMZ-Spetsstal has announced that it has received a five-year licence from Rostechnadzor,
the Federal Environmental, Industrial and Nuclear Supervision Service, for the manufacture
of equipment for nuclear power plants. It supplies to Izhora.
Atomenergomash (AEM) part of Atomenergoprom claims to be the leading company in
Russia for major components of nuclear power plants, controlling over 40 facilities, and to
be the only Russian source of steam generators for nuclear plants . Company said that it is
concerned to diversify its source of supply from OMZ, and is talking with Energomash-
Atommash which was set up in the 1970s at Volgodonsk as principal nuclear equipment
supplier. Krasnye Barrikady shipyard and Engineering Company AEM-Technologies have
been mentioned as alternatives to Izhorskiye Zavody to supply reactor pressure vessels.

35 | P a g e
AEM is also considering developing its own capacity to make VVER pressure vessels, possibly
in collaboration with an international company. AEM companies claim to have provided
equipment in 13% of nuclear plants worldwide.
Energomash-Atommash was set up in the 1970s as principal nuclear equipment supplier. It
began producing large-scale reactor components in 1978 including pressure vessels, internal
reactor parts, and steam generators. It supplied some parts in Iran and Taiwan in China, but
until securing contracts for VVER-1200 core-catchers, each 810 tonnes, its focus was on the
chemical, oil and gas industries and it had not handled any nuclear plant work for several
years. It has capacity to make components up to 1200 tonnes. www.energomash.ru
The Russian Power Machine Engineering Company (REMKO) was established in Russia in
2008, amalgamating some smaller firms, with half the shares owned by Atomenergomash. It
produces steam generators and heat exchangers for nuclear power plants. www.remko.cz
OMZ ZiO-Podolsk, part of EM Alliance-Atom and hence a 51% subsidiary of
Atomenergomash since 2006, is increasing capacity to four nuclear equipment sets per year,
investing RUR2.9 billion by 2015, one third of this by the end of 2009. (The remainder of the
company is owned by Renova Group (25%) and EM Alliance (24%).) It is making the reactor
pressure vessel and other main equipment for the BN-800 fast reactor at Beloyarsk as well
as steam generators for Novovoronezh, Kalinin-4 and Leningrad. The BN-800 reactor

36 | P a g e
pressure vessel is 13 metres in diameter, and a unique 16-meter rotary-table milling
machine is needed to manufacture it, using South Korean steel.
In September 2007 Mitsubishi Heavy Industries (MHI) signed an agreement with Russia's
Ural Turbine Works (UTZ) they manufacture, supply and service gas and steam turbines in
the Russian market. Under the agreement, MHI, Japan's biggest machinery maker, will
license its manufacturing technologies for large gas turbines and steam turbines to UTZ -
part of the Renova Group. The agreement also calls for a joint venture to be established in
Russia to provide after-sales service.
Opportunities
Forge Master has great chance in Russia
Domestic suppliers produce a wide range of basic electric power generation equipment,
which dominate the market. However, because Russian engineering firms do not currently
compete in the market for large turbines there is a demand for imported hardware in the
large and mid-range segment. Currently, the major players in the Russian market are: Power
Machines (Siloviye Mashiny), Siemens, OMZ, Alstom, General Electric, ABB, EM Alliance, and
others.
Major foreign manufacturers of power supply equipment, including GE, Honeywell, Pratt
and Whitney, Siemens, Mitsubishi and others, have opened representative offices in Russia.
Some U.S. EPCM contractors have opened their own offices as well. In 2002, RAO UES
started purchasing equipment and services through a system of open tenders.
Approximately 17,000 tenders for energy projects were processed through the world’s
largest marketplace for power generation equipment Companies such as General Electric,
Dresser, Compressor Controls Corporation, Pratt and Whitney, and Black and Veatch are
present in the Russian market and their products are available either directly or through
representatives or distributors.

37 | P a g e
Russia currently has a total installed capacity of 224,541 MW with nuclear capacity of
22,693 MW. The country has 32 operating nuclear reactors which are of Pressurized
Water Reactor (PWR), Fast Breeder Reactor (FBR) and Light Water cooled Graphite
moderated Reactor (LWGR) type. The nuclear generation was about 159 billion kilowatt
hours (kWh) for 2010. Energoatom Concern OJSC (Energoatom) is the key players in Russia's
nuclear power industry. In 2010 the nuclear power contribution is about 15.7% to the total
electricity production. The electricity sector in the country is largely based on thermal and
nuclear sources. The Russian Federal Supervision of Nuclear and Radiological Safety is the
nuclear regulatory authority of Russia. The nuclear policy of the country mainly focuses on
the safe use of nuclear energy. The Russian nuclear energy industry is planning to build
reactors with advanced features to ensure low capital and power costs, higher service life
and higher rate of utilization.
STRATEGIES/RECOMMENDATIONS FOR FORGEMASTERS
Russian engineering firms do not currently compete in the market for large turbines there is
a demand for imported hardware in the large and mid-range segment. Thus, Forge Master
has a great opportunity in Russia. The main tactics for them are as follows-
 Forge Masters should build reactors components with advanced features to ensure
low capital with higher service life.
 They must supply components made of lower power costs with higher rate of
utilization.
 Their supply challenge should not be confined but should extend to other
engineering components as well.
 The forgings may include reactor pressure vessels, steam generator shells, reactor
internals, and heavy piping.
 Initially they should be prepared to invest high capital to ensure large number of
local contracts.
 They must collaborate with local distributers to increase supply.

38 | P a g e
References
Creative Commons, Report on Power generations sectors in Russia, 2007
Zeyno Baran, EU Energy Security: Time to End Russian Leverage, 2007
Report on Russian power project 2011-2015, 2010
Franz Hubert, Reform of Russian Power Industry, 2003 University of Berlin
Robert Orttung, Russia’s Energy Sector between Politics and Business, 2008
Matlashov, Ivan. Russian energy sector to move from state regulation to free market,
2002. BBC Monitoring Former Soviet Union – Economic
S.I. Palamarchuk. Status of Russian Power Sector Liberalization, 2008. DRPT2008
Summary of the energy strategy of Russia for the period of up to 2020, Ministry of
Energy of the Russian Federation, 2003
ENERGY STRATEGY of RUSSIA, Ministry of Energy of the Russian Federation, 2010
Power Machines, 2011 www.power-m.ru/eng/company/
RuselProm, 2011 http://eng.ruselprom.ru/prod.html
World Nuclear Organization, 2011 www.world-nuclear.org/info/inf45.html
OMZ, 2011, www.omz.ru/eng/
AEM Group, 2011, www.aem-group.ru/wps/wcm/connect/aem/siteeng/
EM Alliancze, 2011 , www.em-alliance.com/en/holding/company
UTZ, 2011 http://www.utz.ru/en.shtml
Sheffield Forgemasters Engineering Limited. Company profile
www.sheffieldforgemasters.com

39 | P a g e
Nuclear Industry Association (2010). Manufacturing a Nuclear Future: The UK
Nuclear Industry http://www.nuclearsupplychain.com/faq
Nuclear Power Company will be financially instable. (2010). Nuclear News.
www.nuclear-news.net
Number of Nuclear reactors under construction worldwide. Euro monitor.
BBC News (Apr 2009). Nuclear Europe: Country Guide

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