Electric power industry of Russia: the state and prospects of development in the transition to a low-carbon economy

With the transition to a low-carbon economy, electric energy is growing in importance. For renewable energy sources to make up a big share of the energy mix, it is necessary that a profound institutional change should take place in the functioning of infrastructure industries, one of which is the electric power industry. The success of institutional transformation depends on the initial conditions and the directions of the evolutionary change of the institutional environment. The initial conditions include the fact that the country’s electric power industry used to develop according to a unified national plan before being restructured to promote competition among energy producers and on the electricity market within the Unified Power System. The institutional environment that stimulates the transition of Russia to a low-carbon economy includes international, national, corporate levels and individual consumers, within which renewable energy sources and intelligent power systems are promoted. The major issues that Russia’s energy market has include cross subsidization, excess capacity, and high electricity prices. In Russia’s system services market, the most rapidly growing sector is energy demand management. The principal barriers to the development of Russia’s electric power industry within the framework of the 3Ds concept are technological and psychological. Compared with other countries, Russia is less prepared for energy transformation.