Nizhny Novgorod power grid to be revamped

MOSCOW, Dec. 27 (UPI) -- Russian Unified Energy System and the governor of Nizhny Novgorod announced an agreement Wednesday, investing more than $800 million in the power grid there.

The agreement invests in construction and reconstruction of energy facilities as well as substations and power lines in the Nizhny Novgorod power grid by 2012, Itar-Tass News Agency reported.

"New projects are being implemented in the region, and for us it means one thing - large-scale decisions in the electric power engineering are needed, it is impossible to resolve the task of regional development without them," said Anatoly Chubais, chief executive officer of RAO UES.

The two will be seeking out an investor to pay for the construction of a new gas-vapor thermal power plant. The expected capacity of the project is 900 megawatts which will make up one-third of all energy capaciy in the region. The new plant will be built under the national project for affordable housing. By the end of 2007 the governor and Chubair hope to have drafting complete.

"The development of electric power engineering will allow increasing the housing construction manifold and raise its affordability for ordinary people," said Valery Shantsev, governor of the Nizhny Novgorod region.

Significant growth in power demand of about five percent per year is predicted in the Nizhny Novgorod power grid over the next five years. However the Nizhny Novgorod power grid produces only 45 percent of electric power consumed in the region.