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Eastern Energy Company

What is the goal of the project, what impact does it have on the economic development of the Russian Far East?

The goal of the project is the gradually increase in the amount of electricity supplied to Chinese consumers in accordance with plans agreed by the parties. The project covers several areas: from supplying excess electricity to Chinese border areas from the Amur Oblast via existing power transmission lines and building the first 500 kV interstate transmission line to construction of new power generation facilities and grids.

The amount of electricity for which there is no domestic demand is exported. The export ensures additional load on generating capacities and power transmission lines in the region, as well as partial coverage of costs related to maintenance of the Unified Energy System of East, an increase in the utilization factor of installed capacity and a considerable growth of additional revenue.

Implementation of the project to export electricity to China fosters the economic development of the Russian Far East and is economically and socially important. As electricity exports increase, the structure of regional export improves, the regional GDP and tax revenues of regional budgets grow and the electricity price for consumers from the Far Eastern Federal District decreases.

Which companies are EEC's partners in the project?

In the course of the project implementation, JSC EEC cooperates with the State Grid Corporation of China and Russian energy companies actively operating in the Far Eastern Federal District: PJSC RusHydro, PJSC RAO Energy Systems of the East, JSC Far Eastern Generating Company, PJSC Far Eastern Energy Company, PJSC Federal Grid Company of Unified Energy System (FGC UES).

Why is electricity sold to China at a lower price than to residents of the Russian Far East?

It is a false statement based on comparison between wholesale prices for Chinese partners and retail prices for Russian consumers. Unlike the wholesale price, the retail price is determined by considerable additional costs related to the delivery of electricity to ultimate consumers. It includes the cost of transmission and distribution of electricity, payment for services provided by commercial infrastructure organizations of the wholesale market, technical and commercial losses in grids, including losses related to voltage conversion for power consumers, the established profit rate of all participants of the electricity supply chain, and taxes.

What capacities are to be commissioned during implementation of the project to increase the electricity exports to China?

At present, electricity is supplied to China via three power transmission lines: the 110 kV Blagoveshchenskaya – Heihe power line, the 220 kV Blagoveshchenskaya – Aigun line and the 500 kV Amurskaya – Heihe line. A feasibility study for development of the Yerkovetsky brown coal deposit and construction of a coal TPP there is being prepared now.

Which regions of Russia and China are involved in the project?

The main region for the project to increase the electricity exports to China is the Amur Oblast bordering on the Chinese province of Heilongjiang. As the project develops, opportunities for building new generating capacities both in the Far Eastern Federal District are being considered. Potential consumers of the exported electricity include people and enterprises in Heilongjiang and Liaoning Provinces, as well as near Beijing, the capital of the People's Republic of China.