Russian electric power industry's modernization program needs to be extended ten years - Shulginov

MOSCOW. Feb 20 (Interfax) - The Russian electric power industry's modernization program needs to be extended ten more years at least, Energy Minister Nikolai Shulginov said at a press conference.

"We definitely need to extend it. We will decide by the end of the year. And I think the period is approximately ten years, as these are large volumes," he said.

At the same time, the minister emphasized that there will be fines for abandoned projects. "The problem is not a simple one; you need to negotiate with the consumers. They, of course, are categorically against abandoning projects. However, if you do so, then there will most likely be a fine of 45-30% depending on the project. Because this is impossible, and there are strict rules," he said.

Earlier, it was reported that the Ministry of Energy is considering requests from energy companies to potentially abandon 17 already selected modernization projects with a total capacity of 2,130 MW.

The director of the Department in the Russian Energy Ministry Andrei Maksimov said that the main reasons for failures are non-delivery of equipment and increases in cost.

The issue of applying fines for abandoning projects is under discussion, he said.