German light

E.ON is going to control Tyumen generation

The German concern E.ON has finally found an electric power asset in Russia , over which it intends to establish control. This is Territorial Generating Company No. 10 , which consists of Tyumen CHPP-1 and CHPP-2, Tobolsk CHPP, Chelyabinsk CHPP-1, CHPP-2 and CHPP-3, Chelyabinsk State District Power Plant, Argayashskaya CHPP, as well as Chelyabinsk, Tyumen and Surgut thermal networks . The capitalization of TGK-10 in the RTS has been at $1.7 billion for the second month. However, the Germans are going to receive these assets on a parity basis with the company of the former head of Tyumenenergo Artem Bikov, Modern Technological Systems (STS). TGK-10, as well as Mr. Bikov’s projects within the Intertekhelectro - New Generation company, generate energy consumed by various Gazprom subsidiaries - producing ones, Gazprom Neft and Sibur. Thus, it can be stated that E.ON is trying to become even closer to the Russian monopolist.

However, as they say at RAO UES of Russia, which owns 81.56% of TGK-10 shares, the placement of an additional share issue of this generating company is still a long way off. So far, only the composition of the consortium of banks - consultants for this issue - has been approved. Consideration of its parameters at a meeting of the RAO Board of Directors will take place at the end of June at best. If everything goes smoothly, then in August it will be possible to hold a meeting of TGK-10 shareholders on the issue of increasing capital. According to the energy holding, the placement itself will take place no earlier than November. Nevertheless, RAO “always welcomes the interest of potential investors in the placement of shares of TGKs and OGKs,” says Tatyana Milyaeva, deputy head of the media relations department.

But E.ON has already begun to prepare for expansion into the Russian power industry. “With a growth rate of 5-6%, the Russian electricity market is one of the largest and most dynamically growing markets in Europe. The upcoming liberalization of electricity wholesale trade creates an attractive framework for investment in electricity generation in Russia. E.ON’s long-term goal is to create a strong position in the dynamically growing industrial regions of the Urals, Western Siberia, the Volga region and Central Russia,” the concern said yesterday.

Until now, E.ON was going to participate in the capital of Mosenergo, and also intended to invest in the construction of the Shchekinskaya CHPP in the Tula region. But he failed to agree on these projects. Despite this, the German concern never tired of repeating that it still considers itself a contender for Russian electricity assets. It cannot be ruled out that RAO UES, which intends to reduce its stake in Mosenergo to 25% plus one share from the current 37%, will sell 12% of the shares of the capital company to E.ON (unless, of course, it is against Gazprom , which recently acquired control over Mosenergo for $2.3 billion).

In the meantime, E.ON, apparently, is committed to supplying energy to Gazprom enterprises. A number of gas production enterprises of the concern are located in the Tyumen region, and Sibur enterprises are located in Tobolsk. For this purpose, the German concern and STS agreed to create a joint company in Tyumen, Eon STS Energy, which will be owned by a holding company registered in Austria. STS owns a number of assets in generation and networks, E.ON reports, without specifying what these assets are. STS will contribute some of them to the joint venture. Which ones exactly are also not specified. The Board of Directors of Eon STS Energy is headed by Mr. Bikov. The new joint venture will participate in the placement of an additional issue of shares of TGK-10, but before this, STS will transfer a number of its generating assets to TGK-10, the report says. Eon STS Energy also plans to build up to 1000 MW of new generating capacity in Russia, investing more than $1 billion.

Nikolay GORELOV, Yuri ShPAKOV, Berlin