19 Oct 2023 12:55

Russian electricity exports to China might top 4 bln kWh in 2023 - Novak

MOSCOW. Oct 19 (Interfax) - Russian electricity exports to China might total more than 4 billion kWh in 2023, Deputy Prime Minister Alexander Novak said at the Russia-China Energy Business Forum.

The sole operator for Russian electricity exports and imports is state power company Inter RAO . Company spokesperson Alexandra Panina estimated in the spring that exports to China in 2023 would be on par with last year's 4.7 billion kWh, but noted some difficulties, including the growth of electricity demand in Russia's Far East, water levels at hydropower plants and rising electricity prices.

In the fall, Panina lowered her forecast to below last year's level, but on par with the ten-year average.

Among other things, exports were affected by the restriction of power transmission to China along the Amur-Heihe power line to 100-200 MW from 600 MW due to a shortage in the energy system of Russia's East. Energy Minister Nikolai Shulginov said the restrictions on exports would be in effect until the end of the year.

Furthermore, the Russian government approved a resolution to impose export duties from October 1, 2023 to the end of 2024 on a broad range of goods in the amount of 4-7% when the U.S. dollar's exchange rate is 80 rubles or more; the duty increases as the ruble weakens. Commodities that are exempt from the duty include oil, gas, grain and forest products.

Inter RAO reached an agreement with China by mid-October to include the duty in the price of exported electricity. However, the power line that supplies the electricity is down for repairs until October 22, so supplies will amount to 120 MW for almost all of October, Panina said on the sidelines of Russian Energy Week.