Electric Energy. New Opportunities for Cooperation along the Entire Value Chain in Power Sector
KEY CONCLUSIONS
Russia and China are invested in more intensive cooperation in electric energy
“Historically China is our strategic partner not just in developing strategic export relations, but in modern construction and designing our production facilities, as well as providing those facilities with state-of-the-art equipment,” Anna Tsivileva, Chairman of the Board of Directors, Kolmar Group.
“We did a profound study of the Russian market, and we strive to take part in developing the Russian electric energy market and building the infrastructure,” Li Yanming, Deputy General Manager, PowerChina.
“Cooperation in the energy sector is an important part of the Russia–China collaboration. We work together under certain conditions and can ensure development of the global electric energy industry,” Jiang Yi, President, SPIC.
PROBLEMS
China is buying less electric energy from Russia
“Starting from 2018, there is a certain trend, when less electric energy is bought from Russia, which triggers our concern, as the existing cross-country grid capacities are underutilized. <…> The Yerkovets project situation [a suspended project to build a power plant in conjunction with a coal deposit in Amur Region, – Ed.] cannot be called a positive example, while it can become a notable contribution to the development and expansion of the Russian-Chinese cooperation,” Boris Kovalchuk, CEO, PJSC Inter RAO.
No unified standards for equipment and processes
“While there is a great need for cooperation: both our Chinese colleagues are ready to supply equipment and technology to our market and advanced Russian companies are ready to demonstrate their export potential, yet there is a certain problem. Particularly, it is the lack of standards for equipment, processes and cervices,” Andrey Murov, Management Board Chairman, FGC UES.
Underutilized hydropotential
“Only 0.5% of the whole energy system capacity falls on pumped-storage units. If we address hydropotential, in Russia it is about 8–10%, while on average the countries that use pumped-storage units show the result of 80–90%,” George Rizhinashvili, First Deputy Director General, RusHydro.
SOLUTIONS
Sharing experience between Russia and China
“Adopt China’s best practices, share experience – that is the right path forward for cooperation,” Pavel Livinsky, Director General, Rosseti.
“Construction of the Tianwan power plant gave us a unique experience of cooperation that we – on the Russian side – would like to develop,” Alexander Lokshin, First Deputy Director General for Operations Management, ROSATOM State Atomic Energy Corporation.
“The key operations for the State Grid Corporation of China is investing in building power grids. Our activity covers 28 provinces, autonomous regions and direct-administered municipalities. It is a unique example of using high-voltage super grids,” Zhang Zhigang, Executive Vice President, State Grid Corporation of China.
Cooperation in renewable energy sources
“A special interest goes to projects that apply new technologies for producing electric energy, like renewable energy sources, using waste for producing electric energy and localization when it comes to producing hi-end equipment in Russia,” Boris Kovalchuk, CEO, PJSC Inter RAO.
“Now we are constantly investing our efforts in promoting green electric energy, and we hope that based on Russia’s renewable energy programme we will continue our cooperation, ramp up total capacity by a lot of megawatts, which will include both wind energy and photovoltaics,” Lei Zou, Chairman, Dongfang Electric Corporation.
“We should strive to raise the share of green energy in our energy balance. Alongside with the development of wind energy, we should in every possible way develop nuclear energy, and Russian nuclear energy industry has become truly successful. Cooperation in this industry will contribute to developing our own nuclear energy sector,” Yu Jianfeng, Chairman, CNNC.
“China and Russia have a notable potential for cooperation in renewable energy sources and modernization of existing construction,” Wang Hongzhi, Vice President, China Huadian Corporation.
Intensifying cooperation in coal industry
“We are open and ready to consider various ways of cooperation – both direct capital investment and cooperation in equipment and technology supply,” Stanislav Grachev, Director General, Russian Coal.
“China is rich in resources, but its needs and energy strategy are rooted in keeping coal-based generation an important part of our energy balance for as long as possible. That is why clean coal mining and green coal-based power generation are very important,” Xiao Chuangying, Assistant to the President, CHN Energy.
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