EFFICIENCY OF THE ELECTRICITY MARKETS IN RUSSIA

A detailed analysis of the restructuring processes in an individual country requires the knowledge of the initial physical and organizational state of the electric power sector. Each country is concerned about the efficiency of its power sector and is interested in the application of positive experience gained by other countries. The paper describes the main characteristics of the power sector in Russia, as well as the concepts of the power sector restructuring and market organization. The paper summarizes the achievements and current challenges of the sector. Among existing problems are weak competition in the retail markets, reduction in electricity production at combined cycle power plants, existing excess of generation capacity and high level of the transmission rates. Relevant future activities for the sector modernization in Russia can be helpful for the improvement of electricity markets in other countries.