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Project summary document

Project name:SYSTEM OPERATOR SCADA
Country:Russia
Project number:34988
Business sector:Power and Energy
Public/Private:Public
Environmental category:C
Board date:16 November 2004
Status:Signed
Date PSD disclosed:
Date PSD updated:
5 May 2004
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Project description
and objectives:

The proposed project is to finance the implementation of the SCADA/EMS (Supervisory Control and Data Acquisition/Energy Management System) at the System Operator level of the power system in Russia.

With the on-going power sector reform and liberalisation, the SCADA/EMS system is vital to ensure efficient operational and dispatching management, additional commercial functionality and improved interface among participants in the emerging competitive wholesale electricity market.

Transition impact:

The transition impact of the Project derives from the following:

  • Facilitating Sector Restructuring - The Project will be the next logical step in the Bank’s involvement in the Russian power sector restructuring, which began with the RAO UES Restructuring Loan.  As part of the industry unbundling, OAO SO-CDU UES has been singled out to become an effective and market-driven independent System Operator - a paramount factor in the long-term viability of the sector.

  • Promoting Competitive Market Development - Implementation of the new System Operator’s IT system will ensure an efficient decision-making process and execution of management actions taken by the UES of Russia in the emerging competitive wholesale electricity market.  It is impossible to have a functioning market without the required technical infrastructure being available to operate the market and the power system, to meter the actual transactions and to settle the trading transactions.  The current technological obsolescence of the IT environment of the operational and dispatching management system is a substantial risk factor, which could adversely affect the transition to competitive relations in the power sector.

  • Encouraging Sound Regulatory Environment – The Bank will be involved in establishing ground rules and building the industry tariff-setting mechanism through the on-going institutional dialogue, and an official undertaking by the Regulator to include the IT implementation costs in the tariff charged by the SO as a pre-requisite to the transaction.  Such undertaking will formalise the full cost recovery principles of tariff setting.

  • Facilitate the Parallel operation with European Systems - The proposed project will also help upgrade the Russian power system to the standards of neighbouring European power systems, including UCTE with a view to encourage cross-border trade in the future.

  • Downstream Externalities and Spill-Over Effects – Due to the size of the Russian power system and its regional infrastructure, the new system will operate in real time in hierarchical configuration, which puts very heavy demand on telecommunications infrastructure.  The Project will partially implement and mainly catalyze improvements and technological upgrades to the industrial telecom sector.

The client:

OAO SO-CDU UES (SO), the System Operator for the power system in Russia, including the central and regional dispatching units. SO is a wholly-owned subsidiary of RAO UES of Russia.

EBRD finance:

Long term debt financing in an amount to be determined after the outcome of the tender process.

Total project cost:

To be determined.

Environmental impact:

The project has been screened C/1. The installation and adaptation of a specialized SCADA/EMS software and equipment is not associated with significant environmental issues. The project will enhance energy management and may indirectly bring about some environmental benefits through improved efficiency across the power transmission and distribution system.

A corporate health, safety and environmental review of SO showed that its assets consist mainly of buildings and IT equipment and software with little or no environmental issues. Therefore, the environmental due diligence was focused on health and safety aspects of SO’s operations. SO has established an operational health and safety management system in compliance with Russian Occupational health and safety regulations. SO also has initiatives underway to further improve workplace conditions and medical services for its staff. SO will provide annual reports to the Bank of its health and safety performance and of its progress in implementing these initiatives.

Technical
cooperation:

Technical cooperation to review the regulatory aspects of the System Operator’s tariff structure. This is to be implemented in parallel with the project.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Aida Sitdikova, Operation Leader: sitdikoa@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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