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ИД «Финансы и кредит»






National Interests: Priorities and Security

Assessing the efficacy of governmental programs for renewal of fixed assets in power engineering

Vol. 17, Iss. 3, MARCH 2021

Received: 28 January 2021

Received in revised form: 12 February 2021

Accepted: 28 February 2021

Available online: 15 March 2021


JEL Classification: O13, P28, Q47

Pages: 538–555


Ol'ga V. NOVIKOVA Peter the Great St. Petersburg Polytechnic University (SPbPU), St. Petersburg, Russian Federation


Yuliya V. ORTIKOVA Peter the Great St. Petersburg Polytechnic University (SPbPU), St. Petersburg, Russian Federation

ORCID id: not available

Subject. The article focuses on the efficacy of governmental programs for implementing the power capacity supply, which is a long-term contract obliging the company to build new generating capacities within an agreed period of time, while the consumer must pay for the power capacity within the term of the contract at higher power capacity tariffs.
Objectives. The study reviews the outcome of the program for the renewal of generating capacity under the power capacity supply contract and evaluates the 2019 program for retrofitting of generating fixed assets.
Methods. The methodological framework relies upon the comparative analysis of generating capacity renewal programs held in Russia under power capacity supply contracts with reference to the balance of demand and supply.
Results. The article presents the outcome of the 2010 program for the renewal of generating capacities in Russia and gives the comparative description of two programs for the renewal of the Russian generating capacities. We also predict the efficiency of the 2019 program for the renewal of the Russian generating capacity.
Conclusions and Relevance. The above programs helped implement the new effective equipment, reduce the specific consumption of fuel oil equivalent at power plants. However, as the site to be renewed was chosen inappropriately, some regions of the Russian Federation saw the surplus power capacity. The 2019 program accommodates for stringent requirements for the selection of facilities. Having analyzed growth rates of power capacity and demand by power grids, we conclude that the power capacity factor will drop at power plants until 2025, thus putting the cost effectiveness of the above programs at question.

Keywords: power supply contract, renewal of fixed assets, generating facilities, power capacity factor, modernization


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