Alstom Grid and Soyuz Holding have signed a joint venture agreement to manufacture and commercialize high voltage switchgear as part of ongoing efforts to modernize the Russian electrical grid. The joint venture will be owned 51% by Alstom Grid and 49% by Soyuz Holding and will be part of Alstom’s worldwide industrial organization, benefiting from its industrial know-how and technological expertise. This agreement follows the memorandum of understanding signed in 2011.
It is a key milestone for Alstom Grid to address the Russian market, with its increasingly localized production of equipment for electricity transmission. The manufacturing deal includes the continued manufacture of 110-220 kV circuit breakers and an extension of the range up to 500 kV. It also foresees the introduction of a wider range of products, including disconnectors and gas insulated substations. This equipment will be produced at Soyuz’s “High Voltage Switchgear Factory” at Mozhaisk, near Moscow.
This range of products, designed to cope with severe climate conditions, will contribute to the significant upgrade undertaken by Russia of its electricity transmission and distribution system, spanning over 2.1 million kilometers across the country. Russia is one of the largest producers and consumers of electric power in the world. In 2012, the total volume of electricity transmitted by the network, including the lines from 0.4 kV to 750 kV, was over one trillion kW/h. The Russian grid market represents €1.5 billion with an annual average growth of 10% due to the country’s increasing demand for electricity capacity and its need to upgrade existing equipment.
Gerhard Seyrling, Vice President Central and Eastern Europe, Russia of Alstom Grid, says: “Alstom Grid has been committed to the Russian market for many years and makes technology transfers by bringing Alstom’s best-in-class expertise to modernize Russia’s electricity grid. It also strengthens our cooperation agreement with FSK, the largest publicly traded electricity transmission company in the world, signed in 2010. We have a strong presence in Russia with seven locations spanning the entire country“.
Alstom Grid brings its latest high voltage technology, project management expertise and manufacturing know-how to provide Russian customers with reliable and customer-inspired products for a sustainable grid. Soyuz Holding, a long-time partner of Alstom, will bring its outstanding knowledge of the Russian market and sound experience as a leader of Engineering, Procurement and Construction Management market (EPCM).
By inviting a large foreign manufacturer of high voltage equipment, Soyuz Holding expects to localize the production of the entire range of switchgears for the networks between 110-500 kV, which will increase the sustainable operation of the largest transmission and distribution grids of Federal Grid and Holding MRSK, as well as those of large industrial plants.
“Quick and easy access to a high quality equipment manufactured in Russia and its full maintenance are the key advantages for our customers. By doing so, we will increase the share of localized products in our grid and generation-related projects,” said Igor Prikhodko, Director of Soyuz Holding.
Production at the Soyuz factory is already underway for 110 kV and 245 kV circuit breakers. In 2013, the portfolio will be extended to supply up to 500 kV circuit breakers, an entire range of disconnectors and gas insulated substations.