The engineering, procurement and construction firm, known as an EPC contractor, will see orders worth $1 billion per year, deputy director Yury Dolin said, as Russian firms get ready to install more than 30 gigawatts of new generating capacity in the next few years.
"We intend to get commissions not only from Mosenergo itself, but also from Gazprom's electricity projects and those of the city of Moscow," Dolin said.
Mosenergo, the country's largest thermal generator, is controlled by Gazprom and serves as the power supplier to Moscow.
Dolin said the new company had been created and would be operational by the end of the year.
It has already been granted rights to construct three turbine units for Mosenergo and will get four more of these turnkey projects during the next phase of Mosenergo's development, from 2011 to 2013, Dolin said.
Major investors in the power sector have been moving toward using in-house engineers to build their turbines in an effort to cut costs through vertical integration. Experts have raised concerns, however, that the trend could compromise the reliability of Russia's power supply, as inexperienced and ill-equipped firms take on the biggest industrial expansion the country has seen in half a century.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.