The Board of Directors of Inter RAO Group has defined the Group's participation in the segment of distributed generation as a direction and approved the main principals of participation in this segment. The Group is planning to implement projects on the construction of generation objects for industrial companies, various energy-areas, infrastructure projects and projects on construction of generation objects for municipal energy (modernization of inefficient boiler houses).

The Group is aiming to implement projects, which would allow Inter RAO to provide construction, maintenance and management of the distributed generation projects passing them further to the main customer.

The main criteria for the Group's participation in distribution generation projects are as follows: participation exclusively in economically efficient projects, attraction of partners (co-investors) and financial institutions into projects, preference in using main equipment that was produced in Russian Federation (depending on the comparability of technical and economic characteristics).

Construction of distribution generation projects would lower the electric power supply costs for the final consumer and increase additional revenue from investing activities of the Group and boost revenue of Inter RAO's engineering companies.

"In Actualised development strategy of Inter RAO Group till 2020, which was approved by the Board of Directors in March 2014, distributed generation is defined as a perspective business direction of our company, - stated Member of Board - Head of Strategy and Investment Unit of Inter RAO Group Ilnar Mirsiyapov. - This is the reason we think that distributed generation is a new niche for our engineering competences after the capacity delivery agreements projects are finished. Moreover we already have experience of utilizing small capacity energy objects, for example in Bashkiria, where we work with both foreign and Russian equipment."

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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business. The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and the leading Russian energy company by energy efficiency. Inter RAO Group owns and operates approximately 35 GW of installed power generation capacity. www.interrao.ru


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