Russia power firms turn away from coal as cost surges

MOSCOW, July 7 (Reuters) – Russian power producers expect coal prices to follow the cost of gas sharply upward in the coming years, and are switching away from coal as much as possible, said the head of one of Russia’s largest power firms.

SHIFTING AWAY

Electricity officials say that the situation on the coal market is causing a sector-wide shift away from coal-based power production.

In 2006, then-President Vladimir Putin approved sweeping changes to the energy sector’s fuel balance, including a plan to make coal account for 37 percent of the fuel used at power plants by 2015, up from 28 percent today.

But since the trend of rising prices has become clear, generating firms have protested the changes and are refusing to enact them.

Reuters