The Ministry of Energy is against the mechanism of attracting private money for the construction of hydroelectric power stations

The Ministry of Energy opposes investment agreements in the energy sector, a mechanism for attracting private investment in the construction of new generation, including large hydroelectric power plants, that has been discussed since 2022. This is stated in a commentary by the ministry’s press service to Vedomosti.

“As a result of the discussion, it was decided that it was inappropriate, since such an action would affect not the manufacturer, but the consumer [электроэнергии]. This will actually be a new type of cross-subsidization,” the ministry’s press service told Vedomosti. Cross-subsidization in the energy sector usually refers to a reduction in electricity bills for one group of consumers by increasing prices for another. This issue was not raised at the government level, as follows from the response from the press service of the Ministry of Energy.