IDGC Holding, Siemens, energy agencies sign memorandum of understanding
MOSCOW. July 19 (Interfax) - Russian IDGC Holding, German Siemens, Russian-German Energy Agency (RUDEA) and German Energy Agency have signed a memorandum of cooperation, the Russian company said in a press release.
The memorandum was signed in Hanover during the 13th round of the high-level Russian-German intergovernmental consultations.
Russian President Dmitry Medvedev and German Chancellor Angela Merkel looked on as IDGC Holding chief Nikolai Shvets signed the document with Siemens CEO for the Energy Sector Udo Niehage, RUDEA General Director Thomas Hendel and DENA Managing Director Stephan Kohler.
The signatories have agreed cooperation in the comprehensive modernization of IDGC Holding distribution grids and partnership in reducing electricity losses on the grids.
Siemens will engage in the design, delivery and long-term servicing and maintenance of the agreed equipment and systems, particularly automation systems, transformer substations, etc. "The partners will examine opportunities to create new capacity and service centers in Russia for production and servicing of Siemens equipment and systems," the press release says.
Siemens already has a number of production facilities in Russia: a medium-voltage equipment assembly plant in Dubna near Moscow and a recently opened facility for high-voltage equipment in Voronezh, 500 kilometers south of Moscow. It plans to open a transformer plant next year and later organize production of secondary distribution switchgear, the press release says.
RUDEA is responsible for drawing up the technical, economic and organizational plans for project implementation, structuring and managing its implementation and bringing in potential investors.
IDGC Holding will ensure project implementation on the part of subsidiary companies.
"The essence of the partnership is to substantially reduce losses on electricity distribution grids. Specifically, plans are to find the optimal solution for switching 0.4 kilovolt networks, which are the most troublesome segment in terms of electricity losses, to 10 kV," Shvets said.
Dena will engage in consulting and integrating German know-how, technologies and experience and organizing training in Germany for IDGC Holding management staff.
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