OREANDA-NEWS  On 03 October was announced, that IES-Holding President Mikhail Slobodin delivered a report entitled "Stop Reforms? The Future of Power Engineering as Viewed Today" at the 5th Professional Energy Forum on Development of the Russian Electric Power Industry. He started his report by suggesting that conference participants abstract from "the market situation" in the discussion of the state of the Russian electric power sector and focus on the main challenges facing the industry. "The investors have indeed focused not on the current fluctuations, but on a long-term program of their own development and are waiting for confirmation of payback of their investments in the horizon of 5 to 10 years", said Slobodin.

IES-Holding President, who also chairs the Supervisory Board of Non-Profit Partnership Council of Power Producers, underlined that the main task that executives of energy companies are facing now is successful operations during the coming autumn and winter peak load period. According to Mr, Slobodin, considering that the fixed assets are extremely worn-out with a number of turbines having been in operation for 40-60 and even up to 80 years, trouble-free operation of such equipment without a single incident will not be achievable. "The main purpose of the activities held now is to have as few incidents as possible", said IES President.

Mikhail Slobodin stressed that generation companies will build new power facilities and fulfill their obligations under investment agreements: "The generators are intent on building generation facilities". In this process "efforts to reduce construction costs are indeed made on all fronts", he added. For example, electric power producers are raising the question of elimination of the import duty on gas and coal equipment for the energy sector, since "the Russian plants are fully engaged", explained IES-Holding President.

According to Mikhail Slobodin, the Master Plan of Location of Electric Power Facilities requires adjustment. In particular, there is a need for a higher share of capacity capable of serving peak loads. "The Master Plan currently requires major adaptation to the changing consumption structure", he said. Private investors in the electric power sector are also concerned about institutional transformations in the situation when the formation of the capacity market, which would ensure full payback of their investment, and reform of the consumer market have not been completed, added IES President.

Mikhail Slobodin believes that solving these problems will increase the industry's efficiency in general. "Our task is to join forces in creating an infrastructure that will optimize operations of the whole national energy system", he said. "We want to build a new Russian electric power industry".