The Russian Direct Investment Fund (RDIF) and General Electric (NYSE:GE) are to create a joint venture (JV) for the construction of mini power plants for manufacturing companies across Russia.
The Memorandum will be signed at a ceremony on June 21st by Ron Pollett, GE President and CEO for Russia and CIS countries, and Sean Glodek, RDIF Director, at the Saint-Petersburg International Economic Forum. Jeff Immelt, GE Chairman and CEO, and Kirill Dmitriev, RDIF CEO, will also attend the signing.
Growing demand for individual electric power generation systems in Russia has been driven by growth of the industrial sector. The joint project will focus on the production of low power co-generation systems (up to 25 MW) to meet growing demand for energy from infrastructure projects in the Russian regions.
These systems are independent from the federal power grid and serve customers’ needs by directly supplying energy without the need to construct transmission lines reducing the risk of power cuts.
With rising energy prices, increasing energy consumption and tougher environmental requirements for industrial facilities, combined heat and electric power systems have taken on a greater role.
Pollett says: “This memorandum confirms our commitment to work together to develop state-of-the-art power supply solutions for industrial facilities in Russia. Autonomous electric power systems using innovative GE equipment offer considerable economic benefits and comply with the most up-to-date environmental requirements. We expect that this collaboration will allow us to expand our geographic footprint, helping to modernise Russia’s industrial infrastructure.”
Dmitriev says: “The partnership between RDIF and GE will demonstrate how innovative global technologies in energy can be used to develop advanced power generation systems in Russia. Most importantly, the joint project will help provide electricity to small manufacturing companies located across the country.”
