One of the biggest trends characterizing the Russian utility market is the unbundling process that was started in 2006. In 2006, former President Putin approved legislation ushering in a series of privatizations and further liberalization of what was a heavily protected market. The Russian power sector has been undergoing rapid unbundling and reform, in order to sustain Russia's economic expansion with the old infrastructure. Russia's ageing infrastructure is in need of upgrading, as historical state involvement has stifled upgrading and investment. Since the liberalization was started, Russia has been trying to attract some $90 million with market driven reforms and new pricing structures. Former state-owned energy company, RAO UES, was split into 14 TGCs (vertically integrated Territorially-based Generation Companies, running heat and power plants generating thermal and electric power) and 7 WGCs (Wholesale Generation Companies with power plants specializing in electric power). In 2006, 4 TGCs and 4 WGCs were admitted to the Russian stock exchange, RTS. In this long process, Russia has also opened its doors to international utilities, namely Enel, E.ON and Fortum, the former entering the Russian power sector with a 25% acquisition of OGK-5 (for $1.5 billion).
Similarly to Europe, the major driving force behind smart metering deployments is As presenter Alexey Lyakov, Assistant Director General of Energy Efficiency at JSC IDGC of Centre, stated during his presentation:
However, I was rather shocked to hear during the presentations, that the smart metering pilots or rollouts taking place are still very very basic, and do not go beyond serving the purpose of Billing and populating CIS. From what I gathered, for example Meter Data Management is still not addressed. My surprise was also caused as a result of the recent announcements made by President Medvedev, concerning Smart Grid implementation plans for St. Petersburg, and which expects Russia, over the next 3 years, to lay down the groundwork for overhauling its energy system and will launch pilot projects introducing smart-grid technology. The Russian Federal Grid Company is in fact seeking approval to add $12.9 billion to its investment program as it prepares to undertake an extensive upgrade, in line with the modernization and innovation goals set by President Medvedev.
Russian speakers at the conference divulged their activities in smart metering testing and deployments, including Russian Railways, which has one of the country's largest implementations. It is safe to say, that in Russia, like in Western Europe, the preferred communication type for smart metering deployments is PLC (Power Line Communication), not GPRS/GSM. Both Enel and E.ON also presented at the conference, Enel showcasing its Italian full-scale rollout of 32 million smart meters, Telegestore Project, and E.ON updating the audience of the delicate German situation concerning smart meters, and the activities undertaken by E.ON Metering.
It was mentioned during the conference, that unlike Western Europe utilities that have been testing smart meters, and all the relevant communications and software applications, for over 20 years, Russia is just at the beginning, and will be able to ride the Western European knowledge wave and experience. It appeared to me that the people present were extremely knowledgeable in their technical field, but were somehow still missing the big picture of smart metering being a stepping stone for the Smart Grids of the future. However, it was also mentioned by the conference speakers, that while Russia is certainly taking its time in the Smart Metering / Smart Grids affair, when it finally sets its mind to it, Russia will run very fast with it!