Moscow, 16 February 2005. In the next few years, RAO "UES of Russia" intends to carry out over 30 projects based on the mechanisms of the Kyoto Protocol.* These projects will help reduce the emissions of greenhouse gases by the power plants of RAO "UES of Russia" by at least 20 million tonnes.
Two projects have been prepared, which will result in reduced emissions that have been tendered to the Danish Environmental Protection Agency within the framework of the tender held by the Agency. The first project involves the installation of two 10-MW combined-cycle gas turbines at the Mednogorskaya CHPP of OAO "Orenburgenergo". In the second project, the Amurskaya CHPP-1 (OAO "Khabarovskenergo") will convert from burning coal to natural gas and increase the efficiency pressure use. The reduction in emissions achieved as a result of these projects will total 465,000 tonnes annually, with the amount of the transactions estimated at EUR12 million.
Two more projects involving conversion of Khabarovskaya CHPP-1 and Khabarovskaya CHPP-2 to natural gas are near the closing stage. Emission buyers have already been found for the greenhouse gas emission reductions.
RAO "UES of Russia" expects the Russian Government to take the decisions required to implement the Kyoto mechanisms in the 2nd Quarter of 2005.
Russian power plants are responsible for about one third of all hydrocarbon emissions in the Russian Federation and approximately 3% of the world's emissions. Reduction of emissions in most sectors (and this is particularly true of the electric power industry) is achieved through increased efficiency of production and energy conservation, conversion to other types of fuel (e.g. from coal to natural gas or biofuel) and the use of renewable energy sources. Besides, any fuel saving measures lead reduced emissions. That is why the efforts to reduce emissions are in line with the investment, technological and environmental targets set before Russia's electricity industry.
In 1998, RAO UES enterprises started to assess greenhouse gas emissions in the electricity sector. They introduced a system for emissions measurement and reporting and started work in the emissions trading field. In order to create an infrastructure for using the Kyoto mechanisms, RAO "UES of Russia" established the Energy Carbon Fund in 2001.
The Company prepared a long-term evaluation of greenhouse gas emissions until the year 2015. It was found that, by 2010-2012, Russia's electricity industry may have a "reserve" of emissions of approximately 100 million tonnes annually. Part of this "reserve" may, under certain conditions, be sold on the international market, and the proceeds may be invested in energy efficient projects.
The Kyoto Protocol to the UN Framework Convention on Climate Change was ratified by 125 countries and came into force today. Only after the Kyoto Protocol was ratified by Russia in autumn 2004 did it become possible for the Protocol to come into effect. The Russian Federation accounts for 17.4% of the world's emissions, so Russia's entry helped reach the 55% target for greenhouse gas emissions by participating industrialized countries required for the Protocol to become legally binding. The Protocol demands a 5.2% cut in greenhouse gas emissions by 2010-2012 compared to 1990. Russia does not have such reduction commitments, as due to the recession in the early 1990s emissions have fallen by almost one third from the 1990-level. That is why, regardless of the economic development scenarios in the country, Russia will not exceed the required threshold and it may sell the amounts of emissions assigned to it and trade the emissions reduced as a result of projects designed for the purpose.
| 
.jpg){kind=small}
