E.ON announced on Thursday that both partners own a 50 percent stake in the new company, E.ON-STS Energia.
The deal would give E.ON access to an electricity market which is growing at an annual rate of five to six percent, the company said in a written statement.
“The upcoming liberalization of
Ambitious Plans
E.ON said that its long-term goal was to build up a strong position in the rapidly growing industrial regions in the Urals, western Siberia, Volga, as well as in central
The new joint venture, which will be based in
STS is involved in both power production and distribution and supplies some 1.1 million gas and electricity customers in western
The German company has not revealed how much money it will be investing in its project. The news comes shortly after E.ON’s plans to takeover
Sector Privatization
E.ON has been keen to gain access to the Russian electricity market for some time, but the sector has remained firmly in state hands.
The industry, according to E.ON, will require annual investments of some 15 billion euros over the next 15 years. This is not merely a matter of modernizing power plants and grids, but also building new plants.
E.ON said by increasing the efficiency of Russian power plants it will also be able to help improve the environment.
PIN/ DW-WORLD.DE
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